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Scenario 1

If paid through a USAS disbursement and district wants the amount to appear on the W2 as wages but not in Box 14 as Fringe Benefits:

Option #1

• Calculate the amount of Medicare tax as it applies to the total.  If there is Medicare pickup, be sure to inflate the Medicare amount as well as the Total and Applicable Gross.

•  Go to Core>Adjustments

• • Click 'Create'
  • Employee - Find employee by typing in a few characters of first or last name
  • Payroll Item - Choose Medicare Tax 
  • Type - Choose Total Gross
  • Transaction Date - Enter or choose date from calendar
  • Amount - Enter in the amount to be included in the total gross
  • Description - Enter in a description (optional)
  • Click 'Save'

•  Go to Core>Adjustments
  • Click 'Create'
  • Employee - Find employee by typing in a few characters of first or last name
  • Payroll Item - Choose Medicare Tax 
  • Type - Choose Applicable Gross
  • Transaction Date - Enter or choose date from calendar
  • Amount - Enter in the amount to be included in the applicable (taxable) gross
  • Description - Enter in a description (optional)
  • Click 'Save'
•  Before the last pay of the calendar year:
  • Enter the Medicare amount due on the Medicare Payroll Item record as an Error Adjustment both Employee and Employer amounts
  • If City withholding is needed:
    • Calculate the amount of City tax as it applies to the total
    • Enter above calculated amount on the City Payroll Item(s) as an Error Adjustment
•  Manually increase the Total and Applicable Gross amount on the Federal, Ohio, OSDI, City Payroll Items.
  •  Go to Core>Adjustments
    • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose Federal Tax
    • Type - Choose Total Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be included in the total gross
    • Description - Enter in a description (optional)
    • Click 'Save'
  •  Go to Core>Adjustments
    • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose Federal Tax 
    • Type - Choose Applicable Gross
    • Transaction Date- Enter or choose date from calendar
    • Amount - Enter in the amount to be included in the applicable (taxable) gross
    • Description - Enter in a description (optional)
    • Click 'Save'

• • Repeat the same process for State, OSDI and City records. 

Option #2

• Prior to the last pay of the calendar year, total the amounts paid through a USAS disbursement.
• Add a Payroll Item Configuration record payable to the district using the type of Regular.
• Add the Payroll Item record for each employee.  Enter the reimbursed amount paid to the employee in the Rate field.  Enter a Stop Date (a date prior to the next payroll pay date) so the Payroll Item is active for only one pay.
• Add a Miscellaneous Pay Type in Payroll Payments - Future or Current for the amount reimbursed to the employee. 
• Deposit Outstanding Payables check as a reduction of expenditure against the benefit account.

Scenario 2

If paid through warrant check and district wants the amount to appear on the W2 as wages and in Box 14 as Fringe Benefits:

Option #1

• Calculate the amount of Medicare tax as it applies to the total.  If there is Medicare pickup, be sure to inflate the Medicare amount as well as the Total and Applicable Gross.

• Before the last pay of the calendar year, enter withholding amount on the Medicare Payroll Item record as an Error Adjustment both Employee and Employer amounts.
• Manually increase the Total and Applicable Gross amount on the Medicare Payroll Item record (if applicable):

• •  Go to Core>Adjustments
    • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose Medicare Tax 
    • Type - Choose Total Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be included in the total gross
    • Description- Enter in a description (optional)
    • Click 'Save'

• •  Go to Core>Adjustments

• • • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose Medicare Tax 
    • Type - Choose Applicable Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be included in the applicable (taxable) gross
    • Description- Enter in a description (optional)
    • Click 'Save'
• Before the last pay of the calendar year, if City withholding is needed:
  • Calculate the amount of City tax as it applies to the total
  • Enter above calculated amount on the City Payroll Item(s) as an Error Adjustment
• Manually increase the Total and Applicable Gross amount on the City record(s) as it applies:

• •  Go to Core>Adjustments
    • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose City Tax 
    • Type - Choose Total Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be included in the total gross
    • Description - Enter in a description (optional)
    • Click 'Save'

• •  Go to Core>Adjustments

• • • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose City Tax 
    • Type - Choose Applicable Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be included in the applicable (taxable) gross
    • Description - Enter in a description (optional)
    • Click 'Save'
• Manually increase the Total and Applicable Gross on the OSDI record as it applies:

• •  Go to Core>Adjustments
    • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose OSDI Tax
    • Type - Choose Total Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be included in the total gross
    • Description - Enter in a description (optional)
    • Click 'Save'

• •  Go to Core>Adjustments

• • • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose OSDI Tax
    • Type - Choose Applicable Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be included in the applicable (taxable) gross
    • Description - Enter in a description (optional)
    • Click 'Save'
• Enter the amount as a Fringe Benefit field on the Federal record:

• •  Go to Core>Adjustments

...

The following information provides assistance in reporting reimbursable employee payments that, in some way, need to be included on employee's W2.

There are two options to report reimbursable employee expenses. These options include:

1. Creating a Pay Type using the Non-Cash Taxable Benefit Type.

2. Core>Adjustments using the Taxable Benefits and/or Fringe Benefits Type.

Each of the scenarios, and it's steps, below are based on a couple factors:

• How should the payment look on the employee's W2?

• Where are you at in their calendar year end processing?

For assistance in determining how the payment should appear on the employee's W2, please reach out to a legal advisor. 

General Information:

If there are pays remaining in the calendar year and the following fields should be effected, creating a Pay Type (along with the employee's regular payment) using the Non-Cash Taxable Benefit Pay Type option can be used. The Non-Cash Taxable Benefit Pay Type will update the following:

• Federal Tax Payroll Item - YTD Total Gross. 

• Federal Tax Payroll Item - Applicable Gross.

• Federal Tax Payroll Item - Amount Withheld.

• State Tax Payroll Item - Total Gross.

• State Tax Payroll Item - Applicable Gross.

• State Tax Payroll Item - Amount Withheld.

• City Tax Payroll Item (if applicable and based on how the Payroll Item Configuration>Tax Non Cash checkbox is marked) - YTD Total Gross.

• City Tax Payroll Item (if applicable and based on how the Payroll Item Configuration>Tax Non Cash checkbox is marked) - YTD Applicable Gross.

• City Tax Payroll Item (if applicable and based on how the Payroll Item Configuration>Tax Non Cash checkbox is marked) - Amount Withheld.

• Medicare Payroll Item - Total Gross.

• Medicare Payroll Item - Applicable Gross.

• Medicare Payroll Item - Amount Withheld.

• OSDI Payroll Item (if applicable) - Total Gross.

• OSDI Payroll Item (if applicable) - Applicable Gross.

• OSDI Payroll Item (if applicable) - Amount Withheld.

If there are no pays remaining in the calendar year and the following fields should be effected, creating a Core>Adjustments using the Taxable Benefits Type option will need to be used.  The Taxable Benefits Adjustment will update the following: 

• Federal Tax Payroll Item - YTD Total Gross. 

• Federal Tax Applicable Gross - YTD Total Gross.

• State Tax Payroll Item - Total Gross.

• State Tax Payroll Item - Applicable Gross.

• City Tax Payroll Item (if applicable and based on how the Payroll Item Configuration>Tax Non Cash checkbox is marked) - YTD Total Gross.

• City Tax Payroll Item (if applicable and based on how the Payroll Item Configuration>Tax Non Cash checkbox is marked) - YTD Applicable Gross.

• Medicare Payroll Item - Total Gross.

• Medicare Payroll Item - Applicable Gross.

• OSDI Payroll Item (if applicable) - Total Gross.

• OSDI Payroll Item (if applicable) - Applicable Gross.

If the following fields should be effected, creating a Core>Adjustments using the Fringe Benefits Type option will need to be used. The Fringe Benefits Adjustment will update the following:

• Federal Tax Payroll Item - YTD Total Gross. 

• Federal Tax Applicable Gross - YTD Total Gross.

• State Tax Payroll Item - Total Gross.

• State Tax Payroll Item - Applicable Gross.

• Will print in Box 14 if the W2 Report>W2 Report and Submission options are run with the 'Include Fringe Benefits in Box 14' checkbox is marked.

Specific Scenarios:

Scenario 1: A payment(s) was paid using an USAS disbursement and the amount is to be included on the employee’s W2 as Federal, State, City (if applicable), Medicare, and OSDI (if applicable) wages. There are remaining pays in the calendar year.

The payment can be included in a remaining payroll using Payroll Payments - Future or Payroll Payments - Current.

The employee’s Total Gross and Applicable Gross on Federal, State, City (if applicable and based on how the Payroll Item Configuration>Tax Non Cash checkbox is marked), Medicare, and OSDI (if applicable) Payroll Items YTD totals will be updated.

This amount will be included on the employee’s W2 in Box 1, Box 5, Box 16, and Box 18.

• Prior to the last pay of the calendar year, total the amounts paid through a USAS disbursement.

• Go to Payroll>Payroll Payments - Future or Payroll Payments - Current.

• Click Create.

  • If using Payroll - Payroll Current, select the appropriate payroll.

  • Employee = Select the appropriate employee.

  • Compensation = Select the appropriate compensation.

  • Description = Enter if desired.

  • Pay Type = Non-Cash Taxable Benefits. 

  • Units = 1.

  • Rate = Amount of benefit needing to be reported on the employee's W2.

  • Click Save.

Scenario 2:  A payment(s) paid using an USAS disbursement and the amount is to be included on the employee's W2 as Federal, State, City (if applicable), Medicare, and OSDI (if applicable) wages.  There are no remaining pays in the calendar year. 

If the Non-cash Taxable Benefit Pay Type was not used prior to the last pay of the calendar year, a Core>Adjustment to the Federal Tax Payroll Item is required.  The Taxable Benefits Adjustment will automatically update the Total Gross and Applicable Gross amounts on the Federal Tax, Ohio State Tax, City (if applicable and based on how the Payroll Item Configuration>Tax Non Cash checkbox is marked), and OSDI (if applicable), and Medicare Payroll Items.  No further adjustments for Total Gross and Applicable Gross are necessary. 

This amount will be included on the employee's W2 in Box 1, Box 5, Box 16, and Box 18.

• Prior to W2 processing, determine the amount(s) paid through a USAS disbursement.

• Go to Core>Adjustments.

• Click Create.

  • Employee - Locate the employee by name or id.

  • Payroll Item - Choose Federal Tax. 

  • Type - Choose Taxable Benefits.

  • Transaction Date - Enter or choose date from calendar.

  • Amount - Enter in the amount of the

Fringe BenefitDescription

• • USAS disbursement.

  • Description - Enter in a description (

optional)
• Click 'Save'

Option #2

• Prior to the last payroll of the calendar year, total the amounts paid through a USAS disbursement.
• Add a Payroll Item Configuration record payable to the district using the type of Regular.
• Add the Payroll Item record for each employee.  Enter the reimbursed amount paid to the employee in the Rate field.  Enter a Stop Date (a date prior to the next payroll pay date) so the Payroll Item is active for only one pay.
• Add a Miscellaneous Pay Type in Payroll Payments - Future or Payroll Payments - Current for the amount reimbursed to the employee. 
• Deposit Outstanding Payables check as a reduction of expenditure against the benefit account.

• Manually reduce the Total and Applicable Gross amounts on the Federal and Ohio records by the total amount entered as the Miscellaneous Pay Type:

• •  Go to Core>Adjustments
    • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose Federal Tax
    • Type - Choose Total Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be reduced from the total gross
    • Description - Enter in a description (optional)
    • Click 'Save'

• •  Go to Core>Adjustments

• • • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose Federal Tax 
    • Type - Choose Applicable Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be reduced from the applicable gross
    • Description - Enter in a description (optional)
    • Click 'Save'

• Repeat the process for the State Tax record as well.

• Enter the amount as a Fringe Benefit on the Federal record:

• •  Go to Core>Adjustments

Click 'Create'

• • optional).

  • Click Save.

• The Medicare withholding must be paid.  The Board will need to pay for both the Employee and Employer portion of Medicare. The employee can then reimburse the district - if desired.  If Medicare is paid by both the employee and the board, create a Core>Adjustments for the Medicare Payroll Item using the Type of Amount Withheld and/or Board's Amount of payroll item.  If Medicare is fully board paid, create a Core>Adjustments for the Medicare Payroll Item using the Type of Board Pickup Amount of Payroll Item.  This adjustment will update both the Medicare pickup and Medicare Tax Withheld on the W2. Another adjustment will need to be made to balance the 941 QTD Employer's Medicare Contribution using Type of Board's Amount of payroll item for this amount. The Medicare pickup amount is calculated by Total Gross - Total of all Section 125 Annuities/98.55% x 1.45%.

  • If Medicare is paid by both the employee and the board:

    • Go to Core>Adjustments.

    • Click Create.

      • Employee = Locate the employee by name or id.

      • Payroll Item = Medicare.

      • Type = Amount Withheld.

      • Transaction Date = Enter a date within the current posting period.

      • Amount = Enter the amount of the calculated employee Medicare owed.

      • Description = Can be added if desired.

      • Click Save.

    • Click Create.

      • Employee = Locate the employee by name or id.

      • Payroll Item = Medicare.

      • Type = Board's Amount of payroll item. 

      • Transaction Date = Enter a date within the current posting period.

      • Amount = Enter the amount of the calculated employer Medicare owed.

      • Description = Can be added if desired.

      • Click Save.

  • If Medicare is paid entirely by the Board (employee share of 1.45% is paid by the board and the employer share of 1.4% is paid by the board for a total of 2.90%).

    • Go to Core>Adjustments.

    • Click Create.

      • Employee - Find employee by typing in a few characters of first or last name.

      • Payroll Item - Choose

Federal

• • • • Medicare Tax. 

      • Type - Choose

Fringe Benefits

• • • • Board Pickup Amount of the Payroll Item. 

      • Transaction Date - Enter or choose date from calendar.

      • Amount -

Enter in the amount of the Fringe BenefitDescription

• • • • Enter the calculated amount of Board Pickup Amount of Medicare. This will update both Medicare Pickup and Medicare on the employee's W2.

      • Description - Enter in a description (optional).

      • Click

'

• • • • Save

'

Scenario 3

If paid through USPS and district want the amounts to appear on the W2 in Box 14 as Fringe Benefits:

• Enter the amount as the Fringe Benefit field on the Federal record:

• •  Go to Core>Adjustments

...

• • • • .

    • Click Create.

      • Employee - Find employee by typing in a few characters of first or last name.

      • Payroll Item - Choose

...

• • • • Medicare Tax. 

      • Type - Choose

...

• • • • Board’s Amount of the Payroll Item. 

      • Transaction Date - Enter or choose date from

...

Manually reduce the applicable (taxable) and total gross amounts on the 001 Federal and 002 Ohio records by this amount.

• •  Go to Core>Adjustments
    • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose Federal Tax 
    • Type - Choose Total Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be reduced from the total gross
    • Description - Enter in a description (optional)
    • Click 'Save'

• •  Go to Core>Adjustments

Click 'Create'

• • • • calendar.

      • Amount - Enter the calculated amount of Board’s Amount of Medicare.

      • Description - Enter in a description (optional).

      • Click Save.

Scenario 3: A payment(s) was paid using an USAS disbursement and the amount is to be included on the employee’s W2 as Federal and State wages. 

A Core>Adjustment using the Fringe Benefits Type is required.  The Fringe Benefit Adjustment will automatically update the Total Gross and Applicable Gross amounts on the Federal Tax and Ohio State Tax Payroll Items.  No further adjustments for Total Gross and Applicable Gross are necessary. 

The employee’s Total Gross and Applicable Gross on Federal and State Payroll Items YTD totals will be updated. 

This amount will be included on the employee’s W2 in Box 1 and Box 16. 

• Prior to W2 processing, determine total the amount paid through a USAS disbursement.

• Go to Core>Adjustments.

• Click Create.

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose Federal

Tax 

• • Tax. 

  • Type - Choose

Applicable Gross

• • Fringe Benefits.

  • Transaction Date - Enter or choose date from calendar.

  • Amount - Enter in the

amount to be reduced from the applicable (taxable) grossDescription

• • amount of the Fringe Benefit.

  • Description - Enter in a description (optional).

  • Click

'Save'

Scenario 4

If paid through USPS and district does not want this included with the salary account charges in USAS:

• •  In USAS go to Transactions>Receipts:

• • • Post a reduction of expenditure to the 1XX object account and a negative reduction of expenditure to the desired object code.

Scenario 5

If paid part of the calendar year through warrant and part of the calendar year through USPS and district wants the amount to appear on the W2 as wages but not in Box 14 as Fringe Benefits:

Option #1

...

Calculate the amount of Medicare tax as it applies to the total.  If there is  Medicare pickup, be sure to inflate the Medicare amount as well as the Total and Applicable Gross.

...

• • Save.

Scenario 4:  A payment(s) was paid using an USAS disbursement for part of the calendar year and also paid through payroll throughout the calendar year.  All payments are to be included on the employee's W2 as Federal, State, City (if applicable), Medicare, and OSDI (if applicable) wages.  There are remaining pays left in the calendar year.

The payment can be included in a remaining payroll using Payroll Payments - Future or Payroll Payments - Current.

The employee’s Total Gross and Applicable Gross on Federal, State, City (if applicable and based on how the Payroll Item Configuration>Tax Non Cash checkbox is marked), Medicare, and OSDI (if applicable) Payroll Items YTD totals will be updated.

This amount will be included on the employee’s W2 in Box 1, Box 5, Box 16, and Box 18.

• Prior to the last pay of the calendar year,

...

• •  Go to Core>Adjustments
    • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose Federal Tax 
    • Type - Choose Total Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be included in the total gross
    • Description - Enter in a description (optional)
    • Click 'Save'

• •  Go to Core>Adjustments

• • • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item -Choose Federal Tax 
    • Type - Choose Applicable Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be included in the applicable gross
    • Description - Enter in a description (optional)
    • Click 'Save'
• Repeat this process for State, OSDI and Medicare records as well.

Option #2

• Prior to the last pay in the calendar year, determine total the amount paid through a USAS disbursement.
• Add a Payroll Item Configuration record payable to the district using the type of Regular.
• Add the Payroll Item record for each employee.  Enter the reimbursed amount paid to the employee in the Rate field.  Enter a Stop Date (a date prior to the next payroll pay date) so the Payroll Item is active for only one pay.
• Add a Miscellaneous Pay Type in Payroll Payments - Future or Current for the amount reimbursed to the employee. 
• Deposit Outstanding Payables check as a reduction of expenditure against the benefit account.

Scenario 6

If paid part of the calendar year through USAS disbursement and part of the calendar year through USPS and district wants the amount to appear on the W2 as wages in Box 14 as Fringe Benefits:

Option #1

• Determine the total the amount paid through the USAS disbursement.
• Calculate the amount of Medicare tax as it applies to the total.  If there is Medicare pickup be sure to inflate the Medicare amount as well as the Total and Applicable Gross.
• Before the last pay of the calendar year, enter this amount on the Medicare Payroll Item record as an Error Adjustment for both Employee and Employer amounts.
• If City withholding is needed, calculate the amount of City tax as it applies to the total.
• Before the last pay of the calendar year, enter this amount on the City Payroll Item(s) as an Error Adjustment.

• Manually reduce the Total and Applicable Gross amount on the Federal and Ohio record by the amount paid through USPS.

• •  Go to Core>Adjustments

• • • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose Federal Tax 
    • Type - Choose Total Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be reduced from the total gross
    • Description- Enter in a description (optional)
    • Click 'Save'

• •  Go to Core>Adjustments

...

• total the amounts paid through a USAS disbursement.

• Using Payroll Payments - Future or Payroll Payments - Current, create a record for the employee using the Non-cash Taxable Benefits Pay Type.

  • Go to Payroll>Payroll Payments - Future or Payroll Payments - Current.

  • Click Create:

    • If using Payroll - Payroll Current, select the appropriate payroll.

    • Employee = Select the appropriate employee.

    • Compensation = Select the appropriate compensation.

    • Description = Enter if desired.

    • Pay Type = Non-Cash Taxable Benefit.

    • Units = 1.

    • Rate = Amount of benefit needing to be reported on the employee's W2.

    • Click Save.

Scenario 5: A payment(s) was paid using an USAS disbursement for part of the calendar year and also paid through payroll throughout the calendar year.  All payments are to be included on the employee's W2 as Federal, State, City (if applicable), Medicare, and OSDI (if applicable) wages.  There are no remaining pays left in the calendar year.

If the Non-cash Taxable Benefit Pay Type was not used prior to the last pay of the calendar year, a Core>Adjustment to the Federal Tax Payroll Item is required.  The Taxable Benefits Adjustment will automatically update the Total Gross and Applicable Gross amounts on the Federal Tax, Ohio State Tax, City (if applicable and based on how the Payroll Item Configuration>Tax Non Cash checkbox is marked), and OSDI (if applicable), and Medicare Payroll Items.  No further adjustments for Total Gross and Applicable Gross are necessary. 

The employee’s Total Gross and Applicable Gross on Federal, State, City (if applicable and based on how the Payroll Item Configuration>Tax Non Cash checkbox is marked), Medicare, and OSDI (if applicable) Payroll Items YTD totals will be updated.

This amount will be included on the employee’s W2 in Box 1, Box 5, Box 16, and Box 18.

• Prior to W2 processing, determine the total amount(s) paid through an USAS disbursement.

• Go to Core>Adjustments.

• Click Create.

  • Employee - Select the appropriate employee.

  • Payroll Item - Choose Federal Tax. 

  • Type - Choose Taxable Benefits.

  • Transaction Date - Enter or choose date from calendar.

  • Amount - Enter in the amount of the benefit needing to be reported on the employee's W2 .

  • Description - Enter if desired.

  • Click Save.

• The Medicare withholding must be paid.  The Board will need to pay for both the Employee and Employer portion of Medicare. The employee can then reimburse the district - if desired.  If Medicare is paid by both the employee and the board, create a Core>Adjustments for the Medicare Payroll Item using the Type of Amount Withheld and/or Board's Amount of payroll item.  If Medicare is fully board paid, create a Core>Adjustments for the Medicare Payroll Item using the Type of Board Pickup Amount of Payroll Item.  This adjustment will update both the Medicare pickup and Medicare on the W2.  Another adjustment will need to be made to balance the 941 QTD Employer's Medicare Contribution using Type of Board's Amount of payroll item for this amount. The Medicare pickup amount is calculated by Total Gross - Total of all Section 125 Annuities/98.55% x 1.45%.

  • If Medicare is paid by both the employee and the board:

    • Go to Core>Adjustments.

    • Click Create.

      • Employee = Locate the employee by name or id.

      • Payroll Item = Medicare.

      • Type = Amount Withheld.

      • Transaction Date = Enter a date within the current posting period.

      • Amount = Enter the amount of the calculated employee Medicare owed.

      • Description = Can be added if desired.

      • Click Save.

    • Click Create.

      • Employee = Locate the employee by name or id.

      • Payroll Item = Medicare.

      • Type = Board's Amount of payroll item. 

      • Transaction Date = Enter a date within the current posting period.

      • Amount = Enter the amount of the calculated employer Medicare owed.

      • Description = Can be added if desired.

      • Click Save.

  • If Medicare is paid entirely by the Board (employee share of 1.45% is paid by the board and the employer share of 1.4% is paid by the board for a total of 2.90%).

    • Go to Core>Adjustments.

    • Click Create.

      • Employee - Find employee by typing in a few characters of first or last name.

      • Payroll Item - Choose

...

• • • • Medicare Tax. 

      • Type -

...

• • • • Choose Board Pickup Amount of the Payroll Item. 

      • Transaction Date - Enter or choose date from calendar.

      • Amount - Enter in the

...

• • • • calculated amount of Board Pickup Amount of Medicare. This will update both Medicare Pickup and Medicare on the employee's W2.

      • Description - Enter in a description (optional).

      • Click

...

• • • • Save

...

 Go to Core>Adjustments

• • • • .

• Manually increase the Total and Applicable Gross amounts on the OSDI records by the amount paid through the USAS disbursement:

• • • Click

'

• • • Create

'

• • • .

      • Employee - Find employee by typing in a few characters of first or last name.

      • Payroll Item - Choose

OSDI

• • • • Medicare Tax. 

      • Type - Choose

Total Gross

• • • • Board’s Amount of the Payroll Item. 

      • Transaction Date - Enter or choose date from calendar.

      • Amount - Enter

in the amount to be included in the total grossDescription

• • • • the calculated amount of Board’s Amount of Medicare.

      • Description - Enter in a description (optional).

      • Click

'

• • • • Save

'

• • • • .

• •  Go to Core>Adjustments

• • • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose Federal Tax
    • Type - Choose Applicable Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be included in the applicable gross
    • Description - Enter in a description (optional)
    • Click 'Save'
• Enter both the amount paid through warrant and the amount paid through USPS as a Fringe Benefit on the Federal record:

• •  Go to Core>Adjustments

...

Scenario 6:  A payment(s) was paid using an USAS disbursement for part of the calendar year and also paid through payroll throughout the calendar year.  All payments are to be included on the employee's W2 as Federal and State wages.  

A Core>Adjustment using the Fringe Benefits Type is required.  The Fringe Benefit Adjustment will automatically update the Total Gross and Applicable Gross amounts on the Federal Tax and Ohio State Tax Payroll Items.  No further adjustments for Total Gross and Applicable Gross are necessary.

The employee’s Total Gross and Applicable Gross on Federal and State Payroll Items YTD totals will be updated.

This amount will be included on the employee’s W2 in Box 1 and Box 16. 

• Prior to W2 processing, determine total the amount paid through a USAS disbursement.

• Go to Core>Adjustments.

• Click Create.

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose Federal Tax. 

  • Type - Choose Fringe Benefits.

  • Transaction Date - Enter or choose date

from calendar
• Amount - Enter in the amount of the Fringe Benefit
• Description - Enter in a description (optional)
• Click 'Save'

Option #2

• Prior to the last pay in the calendar year, total the amount paid through the USAS disbursement.
• Add a Payroll Item Configuration record payable to the district using the type of Regular.
• Add the Payroll Item record for each employee.  Enter the reimbursed amount paid to the employee in the Rate field.  Enter a Stop Date (a date prior to the next payroll pay date) so the Payroll Item is active for only one pay.
• Add a Miscellaneous Pay Type in Payroll Payments - Future or Current for the amount reimbursed to the employee. 
• Deposit Outstanding Payables check as a reduction of expenditure against the benefit account.
• Manually reduce the Total and Applicable (taxable) Gross amount on the Federal and Ohio records by the amount paid through USPS previously plus the amount of the Miscellaneous pay amount.

 Go to Core/AdjustmentsClick 'Create'

• • from calendar.

  • Amount - Enter in the amount of the Fringe Benefit.

  • Description - Enter in a description (optional).

  • Click Save.

Scenario 7: A payment was already paid through USPS and the payments are to be included on the employee's W2 in Box 14.

A Core>Adjustment using the Fringe Benefits Type is required.  The Fringe Benefit Adjustment will automatically update the Total Gross and Applicable Gross amounts on the Federal Tax and Ohio State Tax Payroll Items.  Since the payment paid would have already updated these fields, adjustments will be necessary.

The employee’s Total Gross and Applicable Gross on Federal and State Payroll Items YTD totals will be updated.  Core>Adjustments will be necessary to reduce the amount(s) the system added.

This amount will not be included on the employee's W2 in Box 1 and Box 16.  

• Prior to W2 processing, determine the total amount needing to be reported in Box 14.

• Go to Core>Adjustments.

• Click Create.

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose Federal

Tax 

• • Tax. 

  • Type - Choose

Total Gross

• • Fringe Benefits.

  • Transaction Date - Enter or choose date from calendar.

  • Amount - Enter in the

amount to be reduced from the total gross

• • amount of the Fringe Benefit.

  • Description - Enter in a description (optional).

  • Click

'

• • Save

'

• • .

• •  Go to Core>Adjustments

• Click

...

• Create

...

• .

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose Federal Tax. 

  • Type - Choose

...

• • Total Gross.

  • Transaction Date - Enter or choose date from calendar.

  • Amount - Enter in the amount

...

• • , as a negative, equaling the Fringe Benefit Adjustment.

  • Description - Enter in a description (optional)

...

• •  Go to Core>Adjustments

Click 'Create'

• • .

  • Click Save.

• Click Create.

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose Federal Tax 

  • Type - Choose

Fringe Benefits

• • Applicable Gross

  • Transaction Date - Enter or choose date from calendar

  • Amount - Enter in the amount

of

• • , as a negative, equaling the Fringe Benefit Adjustment.

  • Description - Enter in a description (optional)

  • Click

'

• • Save

'

Scenario 7

District has paid the amounts through warrant and does not want anything on the W2:

• No action is needed

Non-Cash Amounts for W2 Reporting

Scenario 1

Using Non-cash Taxable Benefit type prior to the last calendar year payroll and NOT in box 14 as Fringe Benefits

If the district wants the amount to appear on the W2 as wages but Not in box 14 as Fringe Benefits.

•  Use the 'Non-cash Taxable Benefit' pay type in Payroll Payments CURRENT or FUTURE and this will represent the non-cash taxable benefits amount (NC3).

Scenario 2

If the Non-cash Taxable Benefit Pay Type was not used during a payroll, the following would need to be done.

If the district wants the amount to appear on the W2 as wages and in Box 14 as Fringe Benefits:

• Calculate the amount of Medicare tax as it applies to the total.  If there is Medicare pickup be sure to inflate the Medicare amount as well as the Total and Applicable Gross.
• If City withholding is needed, calculate the amount of City tax as it applies to the total.
• If OSDI withholding is needed, calculate the amount of the OSDI tax as it applies to the total.
• Manually increase the total and applicable (taxable) gross amount on the Medicare records: 

• •  Go to Core>Adjustments
    • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose Medicare Tax 
    • Type - Choose Total Gross
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the amount to be included in the total gross
    • Description - Enter in a description (optional)
    • Click 'Save'

• •  Go to Core>Adjustments

...

• • .

• Click Create.

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose State Tax. 

  • Type - Choose Total Gross.

  • Transaction Date - Enter or choose date from calendar.

  • Amount - Enter in the amount, as a negative, equaling the Fringe Benefit Adjustment.

  • Description - Enter in a description (optional).

  • Click Save.

• Click Create.

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose State Tax 

  • Type - Choose Applicable Gross

  • Transaction Date - Enter or choose date from calendar

  • Amount - Enter in the amount, as a negative, equaling the Fringe Benefit Adjustment.

  • Description - Enter in a description (optional)

  • Click Save.

Scenario 8: A payment was already processed using the Non-Cash Taxable Pay Type and also needs to be included on the employee W2 in Box 14.

A Core>Adjustment using the Fringe Benefits Type is required.  The Fringe Benefit Adjustment will automatically update the Total Gross and Applicable Gross amounts on the Federal Tax and Ohio State Tax Payroll Items.  Since the payment paid would have already updated these fields, adjustments will be necessary.

The employee’s Total Gross and Applicable Gross on Federal and State Payroll Items YTD totals will be updated.  Core>Adjustments will be necessary to reduce the amount(s) the system added.

This amount will not be included on the employee's W2 in Box 1 and Box 16.  

• Prior to W2 processing, determine the total amount needing to be reported in Box 14.

• Go to Core>Adjustments.

• Click Create.

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose

...

• • Federal Tax. 

  • Type - Choose

...

• • Fringe Benefits.

  • Transaction Date - Enter or choose date from calendar.

  • Amount - Enter in the amount

...

• • of the Fringe Benefit.

  • Description - Enter in a description (optional

...

• •  Go to Core>Adjustments

 Click 'Create'

• • ).

  • Click Save.

• Click Create.

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose

Medicare Tax 

• • Federal Tax. 

  • Type - Choose

Amount Withheld

• • Total Gross.

  • Transaction Date - Enter or choose date from calendar.

  • Amount - Enter in the

withholding amount of Employee MedicareDescription 

• • amount, as a negative, equaling the Fringe Benefit Adjustment.

  • Description - Enter in a description (optional).

  • Click

'

• • Save

'

• • .

•  Go to Core>Adjustments

• Click

'

• Create

'

• .

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose

Medicare

• • Federal Tax 

  • Type - Choose

Board Amount of Payroll Item

• • Applicable Gross

  • Transaction Date - Enter or choose date from calendar

  • Amount

- Enter in the Board Amount of MedicareDescription 

• • - Enter in the amount, as a negative, equaling the Fringe Benefit Adjustment.

  • Description - Enter in a description (optional)

  • Click

'Save'

• OR if fully paid by Board:

• •  Go to Core>Adjustments

Click 'Create'

• • Save.

• Click Create.

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose

Medicare Tax 

• • State Tax. 

  • Type - Choose

Board Pickup Amount of the Payroll Item 

• • Total Gross.

  • Transaction Date - Enter or choose date from calendar.

  • Amount - Enter in the

Board Pickup Amount of Medicare (1.45%) This will update both Medicare Pickup and Medicare on the employee's W2Description 

• • amount, as a negative, equaling the Fringe Benefit Adjustment.

  • Description - Enter in a description (optional).

  • Click

'

• • Save

'

• Enter the amount as a Fringe Benefit on the Federal record: (this will update the Federal and State Total and Applicable Gross amounts and show in Box 14)

• •  Go to Core>Adjustments

Click 'Create'

• • .

• Click Create.

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose

Federal

• • State Tax 

Type 

• • Type - Choose

Fringe Benefits

• • Applicable Gross

  • Transaction Date - Enter or choose date from calendar

  • Amount - Enter in the amount

of

• • , as a negative, equaling the Fringe Benefit Adjustment.

Description 

• • Description - Enter in a description (optional)

  • Click

'Save'

Scenario 3

If 'Non-cash Taxable Benefit' pay type was not used during payroll processing, the Taxable Benefits (NC3) payment amount must be entered under the CORE/ADJUSTMENT JOURNAL, the following would need to be done.

If the district wants the amount to appear on the W2 as wages and NOT in Box 14 as Fringe Benefits:

•  

  Using the Taxable Benefits Type, this amount would only be entered under the 001 Federal Payroll Item. This will update the total and taxable gross totals on the Federal , State, City (If applicable) OSDI and Medicare records during W2 Report. No manual adjustments are needed for the Gross and Taxable Gross amounts.

• • Enter the amount as a 'Taxable Benefits' on the 001 Federal record: 

• • •  Go to Core>Adjustments

Click 'Create'

• • Save.

Scenario 9: A payment was already processed using the Taxable Benefit Adjustment Type and also needs to be included on the employee W2 in Box 14.

A Core>Adjustment using the Fringe Benefits Type is required.  The Fringe Benefit Adjustment will automatically update the Total Gross and Applicable Gross amounts on the Federal Tax and Ohio State Tax Payroll Items.  Since the payment paid would have already updated these fields, adjustments will be necessary.

The employee’s Total Gross and Applicable Gross on Federal and State Payroll Items YTD totals will be updated.  Core>Adjustments will be necessary to reduce the amount(s) the system added.

This amount will not be included on the employee's W2 in Box 1 and Box 16.  

• Prior to W2 processing, determine the total amount needing to be reported in Box 14.

• Go to Core>Adjustments.

• Click Create.

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose Federal

Tax 

• • Tax. 

  • Type - Choose

Taxable

• • Fringe Benefits.

  • Transaction Date - Enter or choose date from calendar.

  • Amount - Enter in the amount of the Fringe Benefit.

Description 

• • Description - Enter in a description (optional).

  • Click

'

• • Save

'

Medicare Total and Taxable Amounts will automatically be increased by the Taxable Benefit Amount so Medicare tax will need to be recorded and paid.  If the Medicare withholding is paid by the employee (1.45%) and employer (1.45%), adjustments must be made to the Amount Withheld and Board Amount of Payroll Item.

If Medicare is fully board paid (Pickup), then an Adjustment should be made to the Board's Pickup Amount of Payroll Item (1.45%) only.  This will update both Medicare Pickup and Medicare on the Employee's W2.

• •  Go to Core>Adjustments

 Click 'Create'

• • .

• Click Create.

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose Federal Tax. 

  • Type - Choose Total Gross.

  • Transaction Date - Enter or choose date from calendar.

  • Amount - Enter in the amount, as a negative, equaling the Fringe Benefit Adjustment.

  • Description - Enter in a description (optional).

  • Click Save.

• Click Create.

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose

Medicare

• • Federal Tax 

  • Type - Choose

Amount Withheld

• • Applicable Gross

  • Transaction Date - Enter or choose date from calendar

  • Amount - Enter in the

withholding amount of Employee MedicareDescription 

• • amount, as a negative, equaling the Fringe Benefit Adjustment.

  • Description - Enter in a description (optional)

• Click 'Save'
•  Go to Core>Adjustments

• • Click Save.

• Click

'

• Create

'

• .

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose

Medicare Tax 

• • State Tax. 

  • Type - Choose

Board Amount of Payroll Item

• • Total Gross.

  • Transaction Date - Enter or choose date from calendar.

  • Amount - Enter in the

Board Amount of MedicareDescription 

• • amount, as a negative, equaling the Fringe Benefit Adjustment.

  • Description - Enter in a description (optional).

  • Click

'

• • Save

'

• OR if fully paid by Board:

• •  Go to Core>Adjustments

Click 'Create'

• • .

• Click Create.

  • Employee - Find employee by typing in a few characters of first or last name.

  • Payroll Item - Choose

Medicare

• • State Tax 

  • Type - Choose

Board Pickup Amount of the Payroll Item 

• • Applicable Gross

  • Transaction Date - Enter or choose date from calendar

  • Amount - Enter in

the Board Pickup Amount of Medicare (1.45%) This will update both Medicare Pickup and Medicare on the employee's W2Description 

• • the amount, as a negative, equaling the Fringe Benefit Adjustment.

  • Description - Enter in a description (optional)

  • Click

'Save'

• • Save.