About Setting Federal Information for W-2 Processing

Use the Federal Information tab in the PR W-2 Process form to set the report items that you want to display on the Federal W-2.

This information includes assigning earnings, deduction, or liability (EDL) codes to standard reporting items that are applicable to your company. For a list of standard reporting items, see IRS Reporting Items.

To set federal information for processing W-2s, select the Federal Information tab. The system defaults all of the EDL codes from the previous tax year. If the tab is blank, make sure that you click Initialize Header from the Info tab to initialize codes to the Federal Information tab. For more information, see Process W-2s.

Note: If you are initializing W-2s for the first time, the EDL codes will not default and you must manually enter the appropriate codes.

You can also use this tab to enter codes to display in Box 14 of the federal W-2 form. You can use Box 14 to report any other information you want to give to your employees, but it is not required by the federal government. Some examples might include, as suggested by the IRS, union dues, health insurance premiums deducted, paid moving expenses, and education assistance programs. You can enter up to eight (8) Box 14 items on this form. The item numbers for the Box 14 items include 40, 41, 46, 47, 51,52, 53, and 54. To use one of these numbers, enter it into the Item field and follow the steps outlined above.

To add another code, enter the item number in the Item field or press F4 for a list of standard reporting items. From the Type drop-down field, select the type of code you are entering: Earnings, Deduction, or Liability. In the Code field, enter the appropriate EDL code, or press F4 for a list of valid codes.

If you need to remove an item for the current tax year, highlight the record on the grid and click the Delete () button on the toolbar.

Once you have finished setting information on this tab, you can initialize federal information and continue on with W-2 processing.