The following scenarios provide assistance in reporting payments that should be included on employee's W2s. The scenarios and each of it's steps below outline how the payment should look on the employee's W2 along with what stage calendar year end processing is at.
Core>Adjustments provide the options of Fringe Benefits and Taxable Benefits.
- Fringe Benefits 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 is the W2 Report>W2 Report and Submission options are run with the 'Include Fringe Benefits in Box 14' checkbox is marked.
- Taxable Benefits 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.
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 pays remaining 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) 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 no pays remaining 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.
- 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 USAS disbursement.
Description - Enter in a description (optional).
Click Save.
- 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.
- 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.
- Click Create.
- Go to Core>Adjustments.
- If Medicare is paid entirely by the Board (2.90% total).
- If Medicare is paid by both the employee and the board:
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 Board Pickup Amount of Medicare (1.45%) This will update both Medicare Pickup and Medicare on the employee's W2.
Description - Enter in a description (optional).
Click Save.
Scenario 3: A payment was paid using an USAS disbursement and the amount is to be included on the employee’s W2 as Federal and State wages. There are pays remaining in the calendar year.
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.
Determine total the amount 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 Benefits
- Units = 1
- Rate = Amount of benefit needing to be reported on the employee's W2
- 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 Taxable 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 4: 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.
- 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
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 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.
Determine total the amount(s) paid through an 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.
- Click Create:
- Go to Payroll>Payroll Payments - Future or Payroll Payments - Current.
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, 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.
- 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.
- 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.
- 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.
- Click Create.
- Go to Core>Adjustments.
- If Medicare is paid entirely by the Board (2.90% total).
- If Medicare is paid by both the employee and the board:
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 Board Pickup Amount of Medicare (1.45%) This will update both Medicare Pickup and Medicare on the employee's W2.
Description - Enter in a description (optional).
Click Save.
Scenario 7: 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.
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.'
Scenario 9: A payment is to be included on the employee’s W2 as Federal, State, City (if applicable), Medicare, and OSDI (if applicable) wages. There are pays remaining 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.
- 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 10: A payment is to be included on the employee’s W2 as Federal, State, City (if applicable), Medicare, and OSDI (if applicable) wages. There are no pays remaining 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.
- 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.
- 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.
- 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.
- Click Create.
- Go to Core>Adjustments.
- If Medicare is paid entirely by the Board (2.90% total).
- If Medicare is paid by both the employee and the board:
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 Board Pickup Amount of Medicare (1.45%) This will update both Medicare Pickup and Medicare on the employee's W2.
Description - Enter in a description (optional).
Click Save.
Scenario 11: A payment is to be included on the employee’s W2 as Federal and State wages. There are pays remaining in the calendar year.
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.
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.'
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.
: 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.
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 gross
Description - Enter in a description (optional)
Click 'Save'
Repeat the same process for the State record.
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
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
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.
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 gross
Description - Enter in a description (optional)
Click 'Save'
Enter the amount paid through the USAS disbursement and the amount paid through USPS 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 9:
Non-Cash Amounts for W2 Reporting
Scenario 1 is used prior to the last calendar year payroll, using the Non-cash Taxable Benefit type and district wants the amount to appear on the W2 as wages but NOT in Box 14 as Fringe Benefits:
Scenario 2 is NOT used before last calendar year payroll and district wants the amount to appear on the W2 as wages in Box 14 as Fringe Benefits
Scenario 3 is NOT used before last calendar year payroll and district wants the amount to appear on the W2 as wages but NOT in Box 14 as Fringe Benefits
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 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.
To add employee Medicare Amount Withheld and Board Amount of Payroll Item (district will pay for both or ask employee for reimbursement)
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 Amount Withheld
Transaction Date - Enter or choose date from calendar
Amount - Enter in the withholding amount of Employee 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 Medicare Tax
Type - Choose Board Amount of Payroll Item
Transaction Date - Enter or choose date from calendar
Amount - Enter in the Board Amount of Medicare
Description - Enter in a description (optional)
Click 'Save'
OR if fully paid by Board:
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 Board Pickup Amount of Medicare (1.45%) This will update both Medicare Pickup and Medicare on the employee's W2
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'
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 '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'
Employee - Find employee by typing in a few characters of first or last name
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 Benefit
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'
Employee - Find employee by typing in a few characters of first or last name
Payroll Item - Choose Medicare Tax
Type - Choose Amount Withheld
Transaction Date - Enter or choose date from calendar
Amount - Enter in the withholding amount of Employee 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 Medicare Tax
Type - Choose Board Amount of Payroll Item
Transaction Date - Enter or choose date from calendar
Amount - Enter in the Board Amount of Medicare
Description - Enter in a description (optional)
Click 'Save'
OR if fully paid by Board:
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 Board Pickup Amount of Medicare (1.45%) 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.
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, and in Box 14 if the ‘Include Fringe Benefits Box’ checkbox is checked and the Payroll Item Code is added when W2 Report and Submission is processed.
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 Federal and 002 Ohio records by this amount.
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:
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'
- Go to Core>Adjustments
- 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
- 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
- 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
- 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
- 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'
- 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 Federal and 002 Ohio records by this amount.
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
- 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
- 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
- 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.
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 gross
- Description - Enter in a description (optional)
- Click 'Save'
- Repeat the same process for the State record.
- 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
- 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
- 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.
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
- 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'
- Enter the amount paid through the USAS disbursement and the amount paid through USPS 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 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 is used prior to the last calendar year payroll, using the Non-cash Taxable Benefit type and district wants the amount to appear on the W2 as wages but NOT in Box 14 as Fringe Benefits:
Scenario 2 is NOT used before last calendar year payroll and district wants the amount to appear on the W2 as wages in Box 14 as Fringe Benefits
Scenario 3 is NOT used before last calendar year payroll and district wants the amount to appear on the W2 as wages but NOT in Box 14 as Fringe Benefits
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
- 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.
- To add employee Medicare Amount Withheld and Board Amount of Payroll Item (district will pay for both or ask employee for reimbursement)
- 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 Amount Withheld
- Transaction Date - Enter or choose date from calendar
- Amount - Enter in the withholding amount of Employee 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 Medicare Tax
- Type - Choose Board Amount of Payroll Item
- Transaction Date - Enter or choose date from calendar
- Amount - Enter in the Board Amount of Medicare
- Description - Enter in a description (optional)
- Click 'Save'
- OR if fully paid by Board:
- 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 Board Pickup Amount of Medicare (1.45%) This will update both Medicare Pickup and Medicare on the employee's W2
- 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'
- 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 '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'
- Employee - Find employee by typing in a few characters of first or last name
- 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 Benefit
- 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'
- Employee - Find employee by typing in a few characters of first or last name
- Payroll Item - Choose Medicare Tax
- Type - Choose Amount Withheld
- Transaction Date - Enter or choose date from calendar
- Amount - Enter in the withholding amount of Employee 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 Medicare Tax
- Type - Choose Board Amount of Payroll Item
- Transaction Date - Enter or choose date from calendar
- Amount - Enter in the Board Amount of Medicare
- Description - Enter in a description (optional)
- Click 'Save'
- OR if fully paid by Board:
- 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 Board Pickup Amount of Medicare (1.45%) This will update both Medicare Pickup and Medicare on the employee's W2
- Description - Enter in a description (optional)
- Click 'Save'
To Print the Amount on Employee’s W2 in Box 14 -
Regardless of the option selected above, if the amount is to be print on the employee’s W2 in Box 14 then assure the following steps are taken when running W2 Report and Submission options:
Mark the ‘Include Fringe Benefit in Box 14?’ checkbox.
In the ‘Select Payroll Item Configuration and click Add’ section, add the Payroll Item(s). Once the Payroll Item is added, it will appear in the Selected Payroll Item Configurations section.