Health Insurance

Cost of Employer-sponsored Health Coverage.  The Adjustment for Health Insurance does not override the amount. The adjustment will be added or subtracted to the total amount calculated by the system. Only enter the amount not tracked in USPS system using the 001 Federal Tax Payroll Item.  

The total amount will be placed in Box 12 coded as 'DD' on the employee's W2.

Moving Expense - Only for Active Military

Reimbursements, including payments made directly to a third party for active military employees, be entered in the Moving Expense field. 

-Nonqualified moving expenses and expense reimbursements are reported in boxes 1, 3, and 5 of Form W-2. These amounts are subject to federal income tax withholding and social security and Medicare taxes.

The amount will be placed in Box 12 coded as 'P' on the employee's W2.

Taxable Benefits (NC3)

For more detail instructions, click here.

Use the Non-cash Taxable Benefit pay type in either Payroll Payments - Current or Payroll Payments - Future. This will represent the Non-Cash Taxable Benefits amount (NC3). 

If the Non-cash Taxable Benefit pay type was not used during payroll processing, the Taxable Benefits (NC3) payment amount must be entered using a Core>Adjustments>Federal Tax, Code: 001 and the Taxable Benefits Type. This will update the Total Gross and Taxable Gross totals on the Federal Tax, State Tax, City (If applicable), OSDI (if applicable, see below), and Medicare records on the W2 reports. No manual adjustments are needed for these Gross and Taxable Gross amounts.

OSDI Payroll Items:

When the Taxable Benefits Adjustment is added, each OSDI Payroll Item> Applicable and Total Gross is increased by the Taxable Benefits amount.  If an employee lived in multiple school districts throughout the year, the Applicable Gross for each OSDI Payroll Item will need to be calculated and Core>Adjustments will need to be created to adjust the OSDI's Applicable Gross to reflect the proper amount. The cost for each OSDI Payroll Item and the amount of the adjustment is calculated by the following:

• Cost Per Month = Total Taxable Benefit Amount/Number of Months the Employee was paid in CY

• Cost Per Month X Total Months in School District

• Go to Core>Adjustments and create an adjustment for each OSDI Payroll Item, the Applicable Gross Type, and for a negative amount calculated prior.

Effects of the Taxable Benefit (NC3) on the Quarter Report:

• Taxable Benefit Adjustment on the Federal Tax Payroll Item -($100.00 in this example).

  • Individual Employee *TD Taxable Wages

  • Deduction Items Summary

    • QTD and YTD Taxable x 1

  • Totals Summary>Non-Cash Earnings

    • A 'Difference in Adjusted Gross' will show for the Taxable Benefit (NC3) payments on the Quarter Report

  • Form 941 Line 2) QTD Taxable Wages x 1

  • Line 5C) QTD Medicare Taxable Wages x 1

Medicare Payroll Items:

If the Medicare withholding was paid by the employee (1.45%) and employer (1.45%), Core>Adjustments must be created for to the Amount Withheld and Board Amount of Payroll Item. 

This amount will affect the Quarter report:

• Amount Withheld Adjustment on the Medicare Tax Payroll Item - ($1.45 in this example).

  • Form 941 Line 5C) QTD Employee’s Medicare Contributions x 1

  • Form 941 Line 13) Federal Withholding Deposits x 1

• Board’s Amount of payroll item on the Medicare Tax Payroll Item - ($1.45 in this example).

  • Form 941 Line 5C) QTD Employer’s Medicare Contributions x 1

  • Form 941 Line 13) Federal Withholding Deposits x 1

If Medicare is fully board paid (Pickup), then a Core>Adjustments 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.

• Example:

  • The Medicare amount would be calculated by $100.00 of the Taxable Benefit/ 98.55% = $101.47 Applicable Gross.

    • $101.47 x 0.029 (.0145 x 2) = $2.94 Medicare Pickup Amounts.

      • $1.47 Board Pickup Amount of Payroll Item adjustment will update the employees W2 Medicare Pickup and Medicare, (Employee (being paid by the board as pickup) and Employer amount)

    • $101.47 - $100.00 = $1.47 Applicable Gross Adjustment.

  • This will update both Medicare pickup and Medicare on the Employee's W2. The Amount Withheld is also added to the Total and Taxable Gross of Federal, Ohio, Other State and OSDI to be taxed.  It will not be added to Medicare Taxable Gross. An Adjustment will need to be made to balance the 941 QTD Employer's Medicare Contribution using 'Board's Amount of Payroll item' for $1.47 and an Adjustment to the Applicable Gross for $1.47, this will update the employee's W2 Medicare Taxable Gross by the Amount Withheld

• To balance the W2's Medicare Taxable Gross, create a Core>Adjustments for the Medicare Payroll Item using the Applicable Gross Type for the same amount.

• To balance Quarter Report QTD Employer's Medicare Contribution, create a Core>Adjustment for the Medicare Payroll Item using the Board's Amount of Payroll Item Type for the same amount. 

• City will have to be verified if they tax Medicare Pickup. If city taxes Medicare P/U, The Payroll Item Configuration setting ‘Tax Employer Amounts’ needs to be checked and Medicare tax need to be selected.

  • Add an adjustment using Core>Adjustments using ‘Applicable Gross and Total Gross' for the Medicare Pick-up amount.

    • Payroll Item Configuration - Employer Paid Amounts To Be Taxed

Effects of Medicare Pickup Adjustments to the Quarter Report:

• Board’s Pickup Amount Adjustment on the Medicare Tax Payroll Item - ($1.47 in this example).

  • Line 2) QTD Taxable Wages x 1

  • Line 5C) QTD Employees' Medicare Contributions x 1

  • Line 13) Federal Withholding Deposits x 1

  • Includes Board paid Medicare/FICA x 1

  • Picked up by board x 1

• Board’s Amount of payroll item on the Medicare Tax Payroll Item - ($1.47 in this example).

  • Updates to the Quarter Report:

    • Line 2) QTD Taxable Wages x 1

    • Line 5C) QTD Employees' Medicare Contributions x 1

    • Line 13) Federal Withholding Deposits x 1

    • Includes Board paid Medicare/FICA x 1

    • Picked up by board x 1

• Applicable Gross of payroll item on the Medicare Tax Payroll Item - $1.47 in this example).

  • Updates to the Quarter Report

    • Line 5C) QTD Employees' QTD Taxable Wages x 1

    • Only for Employee’s Over $200,000

      • Line5D) QTD Medicare Taxable Wages Subject To Additional Withholding

• Only for Employee’s Over $200,000:

  • W2 Report - to remove ‘Warning: Possible Medicare discrepancy detected for amount over 200,000. Amount calculated = $xxxx.xx’

    • Board’s Pickup Amount of Payroll Item - YEAR TO DATE ONLY, on the Medicare Tax Payroll item -Example: $100 x .9% (0.009) = .90 cents (0.90)

      • Update W2 report for employee:

        • 692 Medicare

        • Medicare Pickup

Fringe Benefits

For more detail instructions, click here.

Enter the fringe benefit amount using a Core>Adjustments>Federal Tax, Code: 001 and the Fringe Benefits Type. The W2 reports will automatically adjust the Federal Tax and State Tax Total Gross and Taxable Gross amounts.  

If wanting the fringe benefit amount to appear on the employee’s W2 in Box 14, When processing W2 options, check the Include Fringe Benefits in Box 14 option.

Effects on Quarter Report: None

Life Insurance (NC1)

For more detail instructions, click here.

If Life Insurance Pay Type was entered in Current or Future during the last payroll of the year, this will update the employee's Federal, State, City (if applicable) Medicare and OSDI Total Gross.

• Medicare Pickup Employees- Medicare P/U amount will be added to Total and Taxable Gross for Federal, State, Other State, City (if applicable) and OSDI but NOT to Medicare

If the Life Insurance Premium Pay Type was not used prior to the last pay of the calendar year, the Life Insurance (NC1) amount must be entered using a Core>Adjustments.  Creating a Core>Adjustment using the Life Insurance Type will ensure the life insurance amount is correctly reported on the employee's W2 and that the quarter balances.  When creating the adjustment, use the Payroll Item Federal Code, Code: 001.  When the W2 Report is run, the Federal, State, OSDI, City (If applicable) and Medicare Total Gross and Taxable Gross amounts will automatically include the life insurance adjustment.  No other manual adjustments are needed for the Gross and Taxable Gross amounts are necessary.

Effects on Quarter report:

• Totals Summary>Non-Cash Earnings

• Deduction Items Summary>QTD Taxable and YTD Taxable

• Form 941

  • Line 2) QTD Taxable Wages X 1

  • Line 5C) QTD Medicare Taxable Wages

City Payroll Items:

The city Total Gross and Taxable Gross is only adjusted when the Core>Payroll Item Configuration>Tax Non Cash Earn is checked.  If any Core>Adjustments are entered involving non-cash earnings, the city tax will need to be calculated, the appropriate adjustments entered, and the appropriate payments processed.

City Payroll Item Configuration>Tax Non Cash Earn

OSDI Payroll Items:

When the Life Insurance Adjustment is added, each OSDI Payroll Item> Applicable Gross is increased by the life insurance amount.  If an employee lived in multiple school districts throughout the year, the Applicable Gross for each OSDI Payroll Item will need to be calculated and Core>Adjustments will need to be created to adjust the OSDI's Applicable Gross to reflect the proper amount. The cost for each OSDI Payroll Item and the amount of the adjustment is calculated by the following:

• Cost Per Month = Total Life Insurance Amount/Number of Months the Employee Had the Life Insurance

• Cost Per Month X Total Months in School District

• Go to Core>Adjustments and create an adjustment for each OSDI Payroll Item, the Applicable Gross Type, and for a negative amount calculated prior.

Medicare Payroll Items:

If Medicare is fully board paid (Pickup) then Core>Adjustments should be created using the Medicare Payroll Item and the Board Pickup Amount of Payroll Item Type:

Example:

• The Medicare amount would be calculated by $100.00 Life Insurance Premium Cost/ 98.55% = $101.47 Applicable Gross.

  • $101.47 x 0.029 (.0145 x 2) = $2.94 Medicare Pickup Amounts.

    • $1.47 Board Pickup Amount of Payroll Item adjustment will update the employees W2 Medicare Pickup and Medicare, (Employee (being paid by the board as pickup) and Employer amount)

  • $101.47 - $100.00 = $1.47 Applicable Gross Adjustment.

  • City will have to be verified if they tax Medicare Pickup. If city taxes Medicare P/U, The Payroll Item Configuration setting ‘Tax Employer Amounts’ needs to be checked and Medicare tax need to be selected.

    • Add an adjustment using Core>Adjustments using ‘Applicable Gross and Total Gross' for the Medicare Pick-up amount.

      • Payroll Item Configuration - Employer Paid Amounts To Be Taxed

This will update both Medicare pickup and Medicare on the Employee's W2. The Amount Withheld is also added to the Total and Taxable Gross of Federal, Ohio, Other State and OSDI to be taxed.  It will not be added to Medicare Taxable Gross. An Adjustment will need to be made to balance the 941 QTD Employer's Medicare Contribution using:

• Board's Amount of Payroll item for $1.47

• Applicable Gross for $1.47, this will update the employee's W2 Medicare Taxable Gross by the Amount Withheld.

If the Medicare withholding was paid by the employee (1.45%) and employer (1.45%), adjustments must be made to the Amount Withheld and Board Amount of Payroll Item.

Effects on Quarter report:

• Deduction Items Summary>692 Medicare>QTD Total, YTD Total, FTD Total

• Form 941>Line 5C QTD Employees' Medicare Contributions

• Form 941>Line 5C QTD Employer's Medicare Contributions

Effects on the ODJFS Report:

• If the payment is included as part of the payroll process, QTD Gross Wages will include Life Insurance amount(s).

• QTD ODJFS Wages will not include Life Insurance amounts(s).

• The ODJFS submission file only contains the QTD ODJFS Wages.

W2 Report (Only for Employee’s Over $200,000)

• To remove ‘Warning: Possible Medicare discrepancy detected for amount over 200,000. Amount calculated = $xxxx.xx’

  • Add 'Board’s Pickup Amount of Payroll Item - YEAR TO DATE ONLY, on the Medicare Tax Payroll item -Example: $100 x .9% (0.009) = .90 cents (0.90)

    • Update W2 report for employee:

      • 692 Medicare

      • Medicare Pickup

NOTE:  If a Life Insurance Adjustment is posted and this is the only payment the employee is paid during the calendar year, the system will only update the Federal Total Gross and Applicable Gross on the employee's W2.  Adjustments to the employee's State Total Gross and Applicable Gross, City Total Gross and Applicable Gross (if applicable), and Medicare Total Gross and Applicable Gross will need to be created.

The amount will be placed in Box 12 coded as 'C' on the employee's W2.

Adoption Assistance

For more detail instructions, click here.

If the Adoption Assistance Pay Type was NOT USED prior to the last pay of the calendar year, the Adoption Assistance (NC2) payment amount must be entered under the CORE/ADJUSTMENT JOURNAL in order for the Adoption Assistance amount to show correctly on the W2 form and to ensure that the Quarter balances.  The W2 Report will automatically adjust the Medicare and City, if applicable, the total and taxable gross amounts. 

The amount will be put in Box 12 coded as 'T' on the employee's W2.

NOTE: The city is only adjusted when the Payroll Item Configuration setup for the city payroll item is checked to Tax Non Cash Earnings. 

Dependent Care

If not using the Dependent Care Payroll Item type, enter the amount for Dependent Care benefits. This amount will be added to the total and taxable gross fields by any amount above the $5,000.00 threshold ($2,500 if married filing separately) for any Payroll Item that taxes Dependent Care (Federal, Ohio, and City (if applicable) totals during W2 Processing.  This amount would only be entered under the 001 Federal Payroll Item.  The total amount of Dependent Care will appear in Box 10 on the W2.

Third Party pay

For more detail instructions, click here.

If Third Party Sick pay is Taxable, users need to add the Third-Party Sick pay amount to the Total Gross and Taxable Gross on the Federal (001), Ohio (002), City (if applicable), OSDI (8XX) and Medicare (692) records as needed.  Will cause gross amount on W2 Report to be higher.  If Federal tax was withheld, add an adjustment using the Amount Withheld to record the federal tax withheld.

If the Medicare withholding was paid by the Third party, Adjustments must be made to the Amount Withheld and Board Amount of Payroll Item.

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

If it is a Non-taxable Third Party Sick pay, add amount using Third Party Pay to the Federal Tax (001) record.  The amount will be put in Box 12 coded as 'J' on the employee's W2.

Vehicle Lease

The Vehicle Lease option adds to the total and taxable gross fields on the Federal and Ohio totals during W2 Processing. This amount would only be entered under the 001 Federal Payroll Item. This is then reflected on the W2 Report and the vehicle lease amount will appear in Box 14 on the W2.

No manual adjustments are needed

Total Gross

Updates any Payroll Item Total Gross selected

Applicable Gross (Taxable Gross)

Medicare Only - ‘Apply To Employer Pickup’ (Affects Quarter Report only)

Updates any Payroll Item Applicable Gross selected (Taxable Gross)

Quarter Report - Updates Taxable Gross

• Employee’s 692 Medicare Pickup *TD Taxable Gross

• Deductions Summary 692 - Employer Pickup *TD Taxable

• Form 941 - Line 5C) QTD Medicare Taxable Wages

Amount Withheld

Updates any Payroll Item Amount Withheld selected

Applicable Annuities

Updates the W2 Report

Board's Amount of payroll item

Adds to the *TD Employer Amounts selected

Earned Income Credit Amount

Currently not being utilized

Additional Withholding Amount

Adds to the *TD Withholding fields for the Payroll Item selected

Portion of FTD Board Amount that was earned as a rehired retiree

Used to update the FYTD Rehired Retiree Employer Amount on the 450 and 691 record

Portion of FTD Board Amount that was withheld as a rehired retiree

Used to update the retiree field FYTD Rehired Retiree Withholding field on the selected 450 or 591 records

Portion of FTD Gross that was earned as a rehired retiree

Used to Update the FYTD Rehired Retiree Gross field on the 450 record

ODJFS Total Gross

Updates the QTD ODFJS Wages on the ODJFS Report. Select 'Quarter To Date' box

ODJFS Weeks

Updates the # of Weeks on the ODFJS Report.  The Transaction Date has to be within an open posting period, or an error will occur. Select 'Quarter To Date' box

SERS Retirement Days

In order for the adjustment days to be picked up by the SERS per pay report, the adjustment must fall within the period beginning and end dates for payroll the employee is in, which is being reported. Normally this means the payroll period beginning and end dates, but if the employee was added to the payroll using the additions option and a different period beginning and end date were used then that would be the range the adjustment would have to fall within. The Transaction Date has to be within an open posting period or an error will occur.

Make sure that the 

SERS Retirement Hours

Updates the SERS Hours Paid on the SERS Per Pay Report. Normally this means the payroll period beginning and end dates, but if the employee was added to the payroll using the additions option and a different period beginning and end date were used then that would be the range the adjustment would have to fall within. The Transaction Date has to be within an open posting period or an error will occur.

Make sure that the 

STRS Retirement Days

In order for the adjustment days to be picked up by the STRS per pay report, the adjustment must fall within the period beginning and end dates for payroll the employee is in, which is being reported. Normally this means the payroll period beginning and end dates, but if the employee was added to the payroll using the additions option and a different period beginning and end date were used then that would be the range the adjustment would have to fall within. The Transaction Date has to be within an open posting period or an error will occur. **This adjustment will also affect STRS Days on the STRS Advance FYTD report**

Needs to be entered as 1.0 if the employee only worked .25, .5 or .75 of a day. 

Make sure that the 

STRS Retirement Hours

Reports that use STRS Retirement Hours

• ABS101

• Afford Report

• Posted Pay Report

• STRS Reports

EMIS Attendance

Updates EMIS Attendance on the EMIS collection.  The Transaction Date has to be within an open posting period or an error will occur.

EMIS Absence 

Updates EMIS Absence on the EMIS collection.  The Transaction Date has to be within an open posting period or an error will occur.

Board's Pickup Amount of Payroll Item

Adds to the *TD Employer Amount fields

Advanced Sick Leave Used

This item type is used to reset an employee's 'Advanced Units Used' on their CORE/Leaves screen.

Health Reimbursement

This item type is used to report the total amount of permitted benefits under a qualified small employer health reimbursement arrangement in Box 12 code FF on the employees W2. This will allow eligible employers to pay or reimburse medical care expenses of eligible employees after the employees provide proof of coverage. Eligible employers are those small employers with less than 50 Full-Time Equivalent employees (those who work 130 hours a month or 30 or more hours a week for 120 consecutive days).  Another eligibility requirement is that the employer does NOT offer a group health plan to any of their employees. This amount would be entered using the 001 Federal Tax payroll Item.

W2 Overtime

The IRS has confirmed that W2 Box 14 will be used for qualified overtime in Tax Year 2025.

The total Qualified Overtime amount would be entered using the 001 Federal Tax payroll Item and selecting the Type, W2 Overtime.

The amount will be included on the employee’s W2, Box 14, QOT.