2023 W-2 and 1099-R Deduction Box Codes

Owned by Knowledge Assistant
Mar 21, 2024
2 min read
Description of Issue

In preparation for W2 Processing, Deduction W2 Box codes should be added in the Deduction and Benefit Master to pull into the correct fields of an Employee W2. Each option has a specific reporting purpose

Context

  • Enterprise ERP 

  • Human Capital Management

  • Payroll 

  • Deduction and Benefit Master

  • W2/1099-R Processing

  • W2/1099-R Wizard

Cause

Users can have up to four different W-2 codes defined on a single deduction code.

  • Code 1 – Health Savings Account (Box 12, code W). The EMPLOYER made elective contributions to a Health Savings Account. Both employee & employer amounts included if defined in the ‘Cafeteria Plan’ deduction ranges.

  • Code 14R – User defined (Box 14)

  • Code 14S – User defined (Box 14)

  • Code 14T – User defined (Box 14)

  • Code 14U – User defined (Box 14)

  • Code 14V – User defined (Box 14).

  • Code 14W – User defined (Box 14).

  • Code 14X – User defined (Box 14).

  • Code 14Y – User defined retirement (Box 14).

  • Code AA – Roth 401(k) contributions (Box 12). The EMPLOYEE made elective contributions to a Roth 401(k) salary reduction agreement.

  • Code BB – Roth 403(b) contributions (Box 12). The EMPLOYEE made elective contributions to a Roth 403(b) salary reduction agreement.

  • Code D – Section 401(k) (Box 12). The EMPLOYEE made elective contributions to a section 401(k) cash or deferred arrangement.

  • Code DD – Cost of employer-sponsored health coverage (Box 12). The EMPLOYEE and EMPLOYER made contributions to health coverage.

  • Code E – Section 403(b) (Box 12). The EMPLOYEE made elective contributions to a section 403(b) salary reduction agreement.

  • Code EE – Section 457(b) (Box 12). The EMPLOYEE made elective contributions to a designated Roth 457(b) governmental plan.

  • Code F – Section 408(k)(6) (Box 12). The EMPLOYEE made elective contributions to a section 408(k)(6) salary reduction agreement.

  • Code FF – Permitted Benefits Under a Qualified Small Employer Health Reimbursement Arrangement. (Box 12). The EMPLOYER made contributions.

  • Code G – Section 457(b) (Box 12). The EMPLOYEE or EMPLOYER made elective or non-elective contributions to a section 457(b) deferred compensation plan for employees of state or local governments or tax-exempt organizations.

  • Code H – Section 501(c)(18)(D) (Box 12). The EMPLOYEE made elective contributions to a section 501(c)(18)(D) tax-exempt organization plan.

  • Code HH – Section 83(i). Aggregate deferrals under section 83(i) elections as of the close of the calendar year.

  • Code M – Unclaimed FICA (Box 12).

  • Code N – Unclaimed Medicare (Box 12).

  • Code R – Employer contribution to an Archer medical savings account (Box 12).

  • Code S – Employee salary reduction contributions to a section 408(p) SIMPLE (Box 12).

  • Code T – Dependent Care (Box 10).

Resolution

Deduction box codes can potentially change across reporting years. Prior to adding Box codes for the Reporting Year, refer to the IRS Reporting guidelines and the Year-End Processing Document Appendix B.

  2023 W-2 Processing

Additional Information