2021 W-2 Covid Box-14 processing

Owned by Knowledge Assistant
Jan 24, 2022
Description of Issue

How to process Covid Box-14 leave pay or your 2021 W-2s. 

Context
  • Munis
  • Payroll
  • W-2 Processing
Cause

Site used 2020 Covid Leave codes for the entire year of 2021, now they need to correct this before processing W-2s. The Covid pays used in 2020 are no longer valid in 2021. We now need to setup two codes to replace this one for 2021. The first code should replace this pay from 1/1/21 to 3/31/21 and coded under the CV-19 box 14 codes. The second code should replace this pay from 4/1/21 to 12/31/21 and coded under the ARP (American Rescue Plan Act) box 14 codes. 

Resolution
  1. Navigate to Payroll > Payroll Setup > Pay Master
  2. Search for covid leave pay(s)
  3. Duplicate code to two new pay code numbers
    1. These pays will replace their old 2020 covid pay
    2. The first code (pay A) will replace pay data from 1/1/21:3/31/21
    3. The second (pay B) code will replace pay data from 4/1/21:12/31/21
  4. Update the newly created codes 
  5. Remove whatever option they have defined under the W2 Code field and replace with these options
    1. For code A designated to the time period 1/1/21:3/31/21 use one of these three codes:
      1. 14A - BOX 14 - CV-19 SICK LEAVE, $511/DAY LIM
      2. 14B - BOX 14 - CV-19 SICK LEAVE, $200/DAY LIM
      3. 14C - BOX 14 - CV-19 FAMILY LEAVE 
    2. For code B designated to the time period 4/1/21:12/31/21 use one of these three codes:
      1. 14D - BOX 14 - ARP SICK LEAVE, $511/DAY LIM
      2. 14E - BOX 14 - ARP SICK LEAVE, $200/DAY LIM
      3. 14F - BOX 14 - ARP FAMILY LEAVE
  6. Accept changes
  7. Search for your old pay code and remove any option defined under W2 Codes
  8. Accept changes

You will now want to add these newly created codes to their tax deduction exceptions. These two new codes should be excluded from their tax deductions so the Accumulator Gross Verify doesn't pick these up. 

  1. Go to the Payroll Exceptions program. (Human Resources/Payroll>Payroll>Payroll Setup>Deduction and Benefit Master) Click Exceptions in the Menu.
  2. Click Search.
  3. Define Tax Deduction. (Example Federal Income Tax - Deduction 3000).
  4. Select a Processing Code of 1-No Pays are Exempted Except.  Click Accept. 
  5. Update to include your two new codes
  6. Accept changes


Once created you will now need to process accumulator maintenance for employee's yearly pay records. You will do so via: 

How to import yearly employee accumulators

Here, you will be exporting pay data from their old covid pay code. You will need their gross pay under this code from 1/1/21:3/31/21, and 4/1/21:12/31/21. Your import will be an add to create two yearly accumulator records for your newly created covid codes. You will import to add a yearly accumulator for pay A and add this with the gross pay from the old covid code over the course of 1/1/21:3/31/21. You will do the same for pay B except this will be added with the gross pay from the old covid code over the course of 4/1/21:12/31/21. 

Additional Information

- Employee Import - Version 11.3

- Utilizing Flexible Import and Exports - Version 2018.1 and higher

- Import Yearly Accumulators