2e. Verify W-2 Box 10, 11, 12, and 14 settings

Payroll Year-end Checklist

The IRS requires organizations to report specific information in Boxes 10, 11, 12, and 14. If you're not sure what to enter in each box, contact your accountant, auditor, or the IRS to determine if you are reporting the amounts that should be reported in each box.

What if I need help with Box 10, 11, 12, and 14? If you have any questions about the information that's required on your W-2 forms, you should consult your accountant, auditor, or the IRS for the specific information required for your site. Caselle support staff are not payroll tax experts. We can help you put your payroll tax information into the appropriate boxes, but we CANNOT help you determine the amounts to report in each box.

Verifying the special pay code flags

For amounts that need to be reported in Boxes 10, 11, 12, or 14, you will need to verify the special pay code flags and then check the appropriate boxes in Organization > Pay Codes to place the information for each pay code into the correct box on the W-2.

Important! Your accountant or auditor should advise you on the appropriate code to select for each pay code as well as any other information that may be required for each pay code.

Reviewing W-2 Box 12 codes

Use the Pay Code List (that you printed in step 2d) to review the Box 12 code for each pay code. This is the code that will print in Box 12 on the Form W-2.

The IRS requires organizations to report specific information in Box 12. Contact your accountant, auditor, or the IRS to determine if you have amounts that should be report in Box 12.

Example: 401k reports “D” in Box 12, Health Insurance reports “DD” in Box 12.

What about Box 12 codes for health insurance pay codes? Make sure you assign DD to Box 12 on every health insurance pay code.

Pay Code List, W-2 Code column

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Updating W-2 Box 12 code on a pay code

If the Pay Code List shows the wrong code in Box 12, you may need to update the pay code's W-2 Box 12 code.

Do this...

1. Open Connect Payroll > Organization > Pay Codes.

2. Look up the pay code to report in Box 12.

3. Click to select the W-2/1099 tab.

W-2/1099 tab

4. Select the appropriate code that describes the pay code amount from the W-2 Code (Box 12) list.

To view the Box 12 Codes list and descriptions, click here.

W-2 code (Box 12) list

5. Repeat step 4 for each pay code in use at your site with Box 12 requirements.

What do the Box 12 codes mean? Each of these codes and their descriptions, as shown here, can be found by clicking the What’s This? Help button (CTRL+W) and then moving the mouse over the W-2 Code (Box 12) field. You can also use the Box 12 Codes List or visit the irs.gov website for more information.

The W-2 Box 12 code is saved on the selected pay code.

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Reviewing the W-2 Other Description field (Box 14)

Other tax information is reported in Box 14. Box 14 descriptions may include the following items: Contributions to Employee Pension Plans, Union Dues, Life or Health Insurance Premium Payroll deductions, Moving Expenses, etc.

What if I don't know what to enter in Box 14? If you have any questions about the information required on your W-2 Forms, consult your accountant or auditor for the specific information required for your site.

Pay Code List, W-2 Other Description column

Does the pay code require a description and amount for Box 14?

Yes, the pay code requires a description for Box 14. Use the Pay Code List - Tax Summary [Caselle Master] to verify the Box 14 description is correct. To update the Box 14 description, use the W-2/1099 tab in Organization > Pay Codes.
Yes, the pay code requires a description and amount for Box 14. Use the Pay Code List - Tax Summary [Caselle Master] to verify there's a Y in the Include Amounts column. To include amounts, use the W-2/1099 tab in Organization > Pay Codes to select the Include Amounts checkbox.
No, the pay code does not require a description for Box 14. After you have checked each pay code, continue to the next question.

Reviewing dependent care pay codes

Review the pay codes for dependent care benefits that need to be reported on the Form W-2. For example, a cafeteria plan payroll deduction.

Pay Code List, Dep Care column

Is the pay code for dependent care?

Yes, the pay code is for dependent care. Use the Pay Code List - Tax Summary [Caselle Master] to verify there's a Y in Include Amounts column. To update the pay code, use the W-2/1099 tab in Organization > Pay Codes. Select the Include Amounts for Dependent Care (Box 10) checkbox.
No, the pay code is not for dependent care. After you have checked each pay code, continue to the next question.

Reviewing non-qualified deferred compensation pay codes

Review the pay codes for non-qualified deferred compensation pay codes with amounts to include on the W-2 Form. This is the amount for Box 11 on Form W-2.

Pay Code List, Non-Qual Plan column

Are you required to print the total amount of distributions to an employee for a non-qualified deferred compensation plan?

Yes, I need to print this information. Use the Pay Code List - Tax Summary [Caselle Master] to verify there's a Y in the Non-Qual Plan column. To update the pay code, use the W-2/1099 tab in Organization > Pay Codes. Select the Include Amounts for Non-Qualified Plan (Box 11) checkbox.
No, I do not need this information. After you have checked each pay code, continue to the next question.

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