RDA Systems Inc

• Check this box when an error is made on Form W-2 and you are voiding it because you are going to complete a new Form W-2, DO NOT include "Void" from amounts in the totals on your Form W-3.

• Number shown on the employee's Social Security Card

• Number assigned by the IRS
• (00-0000000)

• Same as used on returns 941, 943, or CT-1.

• Required

• Name shown on employee's Social Security Card (First, Middle, Last)
• Do not include Jr., Sr., etc., unless they appear on the employee’s Social Security Card.
• Do not include titles or degrees, such as Dr., RN, etc. at the beginning or end of name.

• The field comes from the employee’s Personnel Demographics Master.

• Total taxable compensation, before payroll deductions, that was paid to the employee during the year.
• Does not include elective deferrals except section 501(c)(18) contributions.

• Total income tax withheld from employee's wages for the year.

• Total wages paid (before payroll deductions) subject to employee social security tax.
• Include:

1. Employee business expense reimbursements reported in box 1.
2. Taxable cost of group term life insurance > $50,000
3. Elective deferrals to certain qualified cash or deferred compensation arrangements and to retirement arrangements described in Box 12-D, E, F, G, S, even though deferrals are not includible in Box 1.
4. Amount deferred under a nonqualified or section 457 plan
5. Employee and non-excludable employer contributions to an MSA
6. Employee contributions to a SIMPLE retirement account.
7. Adoption Benefits
8. Amounts deferred under a nonqualified or Section 457(b) plan. See IRS W2-Form Instructions for more information if necessary.

• Box 3 plus Box 7 cannot exceed $160,200 which is the maximum social security wage base for 2023.

• The field comes from the FICA deduction earnings for each employee.

• Total Employee social security tax withheld.
• Amount withheld should not exceed $9,932.40, which is ($160,200 x 6.2%).

• The field comes from the FICA deduction amount for each employee.

DEDUCTION AMOUNT

• Wages subject to Medicare tax
• The wages subject to Medicare are the same as those subject to social security tax except there is no wage base limit for Medicare Tax.

• The field comes from the MEDICARE deduction earnings for each employee.

• Employee total Medicare tax withheld.

• The field comes from the Medicare deduction earnings for each employee.

• Show the total dependent care benefits under a dependent care assistance program (section 129) paid or incurred by you for your employees.
• Include the fair market value of employer-provided or employer-sponsored day-care facilities and amounts paid or incurred in a section 125 (cafeteria) plan that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture.
• Report all amounts paid or incurred including those in excess of the $5000 exclusion ($2500 if married filing separately).

• Dependent Care Benefits are usually employee paid.
• A tax sheltering deduction is withheld from the employee’s pay, reducing their taxable earnings. The amount withheld is then paid by the employer to the employee or dependent care facility.

• Distributions to an employee from a nonqualified plan or a nongovernmental section 457(b) plan that became taxable for social security and Medicare during the year (but were not prior year services), because the deferred amounts were no longer subject to a substantial risk of forfeiture.
• Distributions are also reported in box 1.
• Make only one entry in this box.

Non Qualifying 457 Plans 457NQ

• Show the taxable cost of group-term life insurance coverage over $50,000 provided to your employees including former employees.
• Only the taxable cost of excess coverage for this insurance should be reported.
• If the employee pays for it, it should not appear.

• The field comes from the Insurance >50K deduction amounts.

• Elective deferrals to a 401(k) cash or deferred arrangement.

• The field comes from the 401k Plan deduction amount for each employee

DEDUCTION AMOUNT

• The field comes from the TSA deduction amount for each employee (elective deferrals under a section 403(b) salary reduction agreement).

• The field comes from the 408(k)(6) SEP deduction amount for each employee (elective deferrals under a section 408(k)(6) salary reduction SEP).

• 501(c)(18)(D) elective deferral

• The field comes from the 501(c)(18)(D) -deduction amount for each employee (elective deferrals to a section 501(c)(18)(D) tax-exempt organization plan).

• Sick pay paid by a third-party insurer, not includible in income and not shown in boxes 1, 3, and 5.
• It should only include sick pay not includible in income (and not shown in boxes 1, 3, and 5) because the employee contributed to the sick pay plan.

• The field comes from the nontaxable Sick Pay deduction amount for each employee.
• Normally this deduction will be set-up manually with the appropriate amount entered in the amount column.
• If this deduction is used, the 3rd Party Sick Pay Check box will be automatically checked.
• Third Party Sick Pay Documentation

• If your organization made excess "golden parachute" payments to certain key employees, report the 20% excise tax on these payments.

• When an employee is reimbursed for employee business expenses using a per diem or mileage allowance and the amount reimbursed exceeds the amount treated as substantiated under IRS rules, the substantiated amount (nontaxable amount) is reported in box 12L.
• The part of the reimbursement that is more than the amount treated as substantiated is reported in box 1, 3, and 5 as taxable wages.
• If the total reimbursement is equal to or less than the amount treated as IRS substantiated, the per diem or mileage allowance reimbursements should not be reported. In such cases, you can still pay through Payroll as a REIMBURSEMENT but the W2 deduction type should be Non-W2.

• The field comes from the business expense deduction amount for each employee.
• To pay an employee for this via Payroll, add a Deduction Description for the SUBSTANTIATED amount and a Deduction Description for the UNSUBSTANTIATED amount.
• SUBSTANTIATED –

1. Add an employee Deduction Master with a Deduction Type of REIMBURSEMENT.
2. The W2 Deduction Type will be BUS EXP NON TAX.
3. Reduce Net = False
4. Enter a POSITIVE amount in the employee’s Deduction Adjustment field.
5. OpenRDA’s Compute process adds to the employee’s NET, the amount of any deduction with a Deduction Type of REIMBURSEMENT.

• UNSUBSTANTIATED –

BUS EXP-NON TAX.

FALSE

DEDUCTION AMOUNT displays in Box 12L

• This field comes from the Uncollected SS GTLI>50K deduction amount (when you provide a former employee, including retirees, more than $50,000 of group-term life insurance coverage for periods during which an employment relationship no longer exists) for each employee.

• This field comes from the Uncollected MED GTLI>50K deduction amount (when you provide a former employee, including retirees, more than $50,000 of group-term life insurance coverage for periods during which an employment relationship no longer exists) for each employee.

• Total of moving expense reimbursements paid directly to employees for qualified (deductible) moving expenses.

• This field comes from the Excludable Moving Expense Reimbursement deduction amount (when you paid moving expense reimbursements directly to an employee for qualified and deductible moving expenses) for each employee.
• To pay an employee for this via Payroll,

• Employer contributions to an Archer MSA.

• Deferrals under a section 408p salary reduction SIMPLE retirement account

• This field comes from the 408(p) SIMPLE deduction amount (deferrals by employees to a section 408(p) salary reduction SIMPLE retirement account that is NOT part of a section 401(k) arrangement) for each employee.

• Amounts paid or expenses incurred by an employer for qualified adoption expenses under an adoption assistance program are not subject to federal income tax withholding and are not reportable in Box 1.

• Report all amounts including those in excess of the $13,400 exclusion (max benefit amount) for 2015.
• Not reported in Box 1.

• Employer contributions to an employee Health Savings Account.
• If employer's contributions are included in employee income, contribution must be reported in boxes 1, 3, and 5.

• It is not necessary to show deferrals in Box 12 with code Y

• Reported in Box 1 and 12Z

• Reports designated Roth Contributions to a section 401(k) plan.

• Reported in boxes 1,3,5
• Subject to income tax withholding

• Reports designated Roth contributions under a section 403(b) salary reduction agreement.

• Reported in boxes 1,3,5
• Subject to income tax withholding

• Use this code to report the cost of employer-sponsored health coverage.

• Reports designated Roth contributions under a governmental section 457(b) plan.

• Reported in boxes 1, 3, 5
• Subject to income tax withholding.

• Reports the amount of payments and reimbursements the employee is entitled to received under the QSEHRA for the calendar year, not the amount the employee actually receives.

• NOT Subject to income tax withholding.

• Checked for employees whose earnings are subject to social security and Medicare taxes but not subject to Federal Income Tax withholding.

• For the OpenRDA W2 program to check the box, the employee’s status title in their Personnel Demographics master must be STATUTORY EMP.

• The box is checked if the employee has an organization or employee-paid retirement plan.

• The box will also be checked if the Retirement Plan field in the employee’s personnel demographics master is true even if the employee has no retirement deductions.
• Used by organizations that do not track retirement through payroll and that may not have annuity and/or deferred comp deductions.

408K6

• This box is automatically marked if the employee has amounts in Box 12J or in the F/W Sick Field Taxable (employee's W2 Master).

NOTE 1

• The Fringe Benefit Deduction Description assigned to an employee for the Leased Vehicle must be set up as follows in order to be reported properly in Box 14a:

1. Deduction Type of FRINGE
2. W2 Type of FRINGE BENEFIT
3. Reduce Net must be FALSE
4. Deduction Amount must be a POSITIVE

• The amount of the fringe benefit

• Fringe Benefits other than taxable non-cash fringe benefits (such as the leased vehicle) are not required in Box 14a and will not be included by the system in Box 14a total. See NOTE 2.
• Examples:

NOTE 2

• Fringe Benefits Documentation

• If you also have a Fringe Benefit and a Retirement Benefit, Retirement will NOT be displayed in the box. The amount will be for the Fringe with a label of FRINGE.

• Contributions to a pension plan update 14a if there are no Fringe Benefits.
• Examples:

• Paid by the employee
• Reduce Net must be true
• If you also have a Fringe Benefit and a Retirement Benefit, Retirement will NOT be displayed in the box. The amount will be for the Fringe with a label of FRINGE.

• Deductions under a cafeteria plan are also reported in this field.

• Reduce Net must be True.

• The State and Local Tax area of the W2 will accommodate two of each.
• If an employee should have more than two (2) of either, extra W2s will need to be manually generated.

• The State Abbreviation comes from the Deduction Description for STATE tax.
• The first word of the Short Description in the State Tax Deduction Description must be the Federal Postal abbreviation code for the state. Type in UPPERCASE (e.g., GA, VA). (System will only use the first two characters of the first word of the Short Description in the State Tax Deduction Description.)

• The tax field comes from the State deduction amount.