...

Note
All Option #1 scenarios, the employee pays any Federal, Ohio and OSDI taxes on amount paid through warrant as a part of the year-end tax return filing. However, if desired, the district can enter an Error Adjustment(s) for the calculated amount prior to the last calendar year payroll and appropriate taxes will be withheld.

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

...

Table of Contents

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:

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

to be included in the applicable (taxable) grossDescription

- of the USAS disbursement.
- 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

- - 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 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'

- .
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 Medicare Tax.
    - Type - Choose Board Pickup Amount of the Payroll Item.
    - Transaction Date - Enter or choose date from calendar.
    - Amount - 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.
  - 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 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 grossDescription

- of the Fringe Benefit.
- 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'
  - 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'

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

Info
W2 Report and Submission will add it back to these figures based on the fringe benefit 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'
  - 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 (taxable) gross
  - 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

Determine total the amount paid through a 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 the withholding 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 increase the Total and Applicable Gross amount on the Federal, Ohio, OSDI, city and Medicare records (if applicable) by the amount paid through the 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 Total Gross

- .

Info

To Print the Amount on Employee W2 in Box 14 -

When running W2 Reports>W2 Reports and Submission>all options, mark the ‘Include Fringe Benefit in Box 14?’ checkbox.

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, 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

included in the total gross

- reported on the employee's W2 .
- Description - Enter

in a description (optional)

- if desired.
- 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.

Info
W2 Report and Submission will add it back to these figures based on the fringe benefit amount.

- Go to Core>Adjustments

Click 'Create'

- .
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

Federal Tax Type - Choose Total Gross

- - - Medicare Tax.
    - Type - Choose Board Pickup Amount of the Payroll Item.
    - Transaction Date - Enter or choose date from calendar.
    - Amount - Enter in the

amount to be reduced from the total grossDescription

- - - 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

- - - Save.
  - 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 calendar.
    - Amount - Enter

...

- - - the

...

- - - calculated amount of Board’s Amount of Medicare.
    - Description - Enter in a description (optional).
    - Click

...

- - - Save

...

Manually increase the Total and Applicable Gross amounts on the OSDI records by the amount paid through the 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 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

...

- - - .

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

...

- Go to Core>Adjustments

Click 'Create'

- .

Info

To Print the Amount on Employee’s W2 in Box 14 -

When running W2 Reports>W2 Reports and Submission>all options, mark the ‘Include Fringe Benefit in Box 14?’ checkbox.

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.
- 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.

Info
W2 Report and Submission will add it back to these figures based on the fringe benefit amount.

Go to Core/AdjustmentsClick '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 Federal 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.
Click Create.
- Employee - Find employee by typing in a few characters of first or last name.
- Payroll Item - Choose

Federal Tax

- State 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

- , 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

...

- 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

...

- 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'

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

Info
In all Non-Cash Amount scenarios, the employee pays any federal, Ohio and OSDI taxes as a part of the year-end tax return filing. However, if desired, the district can enter an error adjustment for a calculated amount prior to the last calendar year payroll.

Scenario 1

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

...

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'

...

- .

Info

To Print the Amount on Employee W2 in Box 14 -

When running W2 Reports>W2 Reports and Submission>all options, mark the ‘Include Fringe Benefit in Box 14?’ checkbox.

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).
- 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 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

...

- Federal 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 2

If the Non-cash Taxable Benefit Pay Type had not been 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>AdjustmentsClick 'Create'

- .
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

Medicare

- State Tax

Type

- Type - Choose

Total

- Applicable 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 gross
  - Description - Enter in a description (optional)
  - Click 'Save'
- Repeat the same process for OSDI, and City records.

- Go to Core>Adjustments

Click 'Create'

- calendar
- Amount - Enter in the amount, as a negative, equaling the Fringe Benefit Adjustment.
- Description - Enter in a description (optional)
- Click Save.

Info

To Print the Amount on Employee W2 in Box 14 -

When running W2 Reports>W2 Reports and Submission>all options, mark the ‘Include Fringe Benefit in Box 14?’ checkbox.

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

Medicare Tax

- Federal Tax.
- Type - Choose

Amount Withheld

- Fringe Benefits.
- Transaction Date - Enter or choose date from calendar.
- Amount - Enter in the

withholding

- amount of

Employee MedicareDescription

- 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

Medicare Tax

- Federal 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

- 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>Adjustment

- 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

Board Amount of Payroll Item

- Applicable Gross
- Transaction Date - Enter or choose date from calendar
- Amount - Enter in

the Board Amount of MedicareDescription

- the amount, as a negative, equaling the Fringe Benefit Adjustment.
- Description - Enter in a description (optional)
- Click

'Save'

Go to Core>Adjustments

- 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 MedicareDescription

- the 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)

- Go to Core>Adjustments

Click 'Create'

- (optional).
- Click Save.
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'

- Save.

Info

To Print the Amount on Employee W2 in Box 14 -

When running W2 Reports>W2 Reports and Submission>all options, mark the ‘Include Fringe Benefit in Box 14?’ checkbox.

Version	Old Version 9	New Version Current
Changes made by	Andrea Boehm	Lori Nye
Saved on	Dec 27, 2022	Dec 19, 2024

Versions Compared

Key

Scenario 1

Option #1

Option #2

Scenario 2

Option #1

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:

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:

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:

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.

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.

Option #2

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.

Scenario 3

Scenario 4

Scenario 5

Option #1

Option #2

Scenario 6

Option #1

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.

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

Option #2

Scenario 7

Non-Cash Amounts for W2 Reporting

Scenario 1

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.

Scenario 2

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.

Content Comparison

Versions Compared

Key

Scenario 1

Option #1

Option #2

Scenario 2

Option #1

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:

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:

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:

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.

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.

Option #2

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.

Scenario 3

Scenario 4

Scenario 5

Option #1

Option #2

Scenario 6

Option #1

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.

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

Option #2

Scenario 7

Non-Cash Amounts for W2 Reporting

Scenario 1

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.

Scenario 2

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.