2023 W-2 and 1099-R Pay Box Codes

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

In preparation for W2 Processing, Pay W2/1099-R Box codes should be added in the Pay Master to pull into the correct fields of an Employee W2 based on Earnings Type. Each option has a specific reporting purpose

Context

  • Enterprise ERP 

  • Human Capital Management

  • Payroll 

  • Pay Master

  • W2/1099-R Processing

  • W2/1099-R Wizard

Cause

To Add the W-2/1099-R Box Codes, navigate to the Pay Master Program: Payroll>Payroll Setup>Pay Master. Select Update and use the drop down next to the W2 code box to select a code. Pay Codes can only have one box code defined. These options are listed below:

  • 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 14W – User defined (Box 14)

  • Code 14X – User defined (Box 14)

  • Code 14Z – Fringe benefits (Box 14)

  • Code 8 – Allocated Tips (Box 8)

  • Code A – Social Security Tips (Box 7)

  • Code C – Cost of group-term life insurance over $50,000 (Box 12). The taxable amount of the cost of group-term life insurance coverage over $50,000 provided to your employee. These amounts should also be included in Boxes 1, 3, and 5.

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

  • Code G – Non-qualified plans (Box 11). Distributions to an employee from a nonqualified plan or a nongovernmental section 457(b) plan.

  • Code GG – Section 83(i) Grants. Income from qualified equity grants under section 83(i).

  • Code J – Nontaxable sick pay (Box 12).

  • Code L – Substantiated employee business expense reimbursements (Box 12). The amount of the employee reimbursement that is equal to the amount allowed under IRS rules. Excess reimbursements should be assigned a different pay type in Enterprise ERP (Munis). The excess reimbursement will not have a W-2 code on the Pay Type and should be included in Box 1.

  • Code P – Excludable moving expense reimbursements paid directly to employee (Box 12).

  • Code Q – Military employee basic housing, subsistence, and combat zone compensation (Box 12).

  • Code T – Adoption benefits (Box 12).

  • Code V – Stock options (Box 12).

Resolution

Pay Type 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 A.

2023 W-2 Processing

Additional Information