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W-2 Boxes 12, 14, 10, 11

Setting Up Deduction Codes #

Overview #

This knowledge base article provides comprehensive instructions on how to set up various deduction codes in Pro-Pay, a payroll software system. These codes are essential for accurate reporting and compliance with tax regulations.

Key Features #

  • Detailed list of deduction codes and their descriptions
  • Instructions for setting up codes in the Employer Deductions Set-up screen
  • Information on W-2 form reporting
  • Annual deferred compensation limits

Setting Up Deduction Codes #

To set up deduction codes in Pro-Pay, follow these steps:

  1. Access the Employer Deductions Set-up screen in Pro-Pay.
  2. Enter the appropriate code for each deduction type as listed below.

Deduction Codes and Descriptions #

CodeDescription
AUncollected Social Security Tax On Tips
BUncollected Medicare Tax On Tips
CCost Of Group Term Life Insurance Over $50,000
D401(k)
E403(b)
F408(k)(6) Salary Reduction SEP
G457(b)
H501(c)(22)(D)
IDesignated Roth contributions to a section 401(k) plan (prints as Code AA on W-2)
JSick Pay Not Includable In Income
KTax On Excess Golden Parachute Payments
LCertain Employee Business Expense Reimbursement
MUncollected FICA Tax On Cost Of Group Term Life Insurance
NUncollected MEDICARE Tax On Cost Of Group Term Life Insurance
ODesignated Roth contributions to a section 403(b) plan (prints as Code BB on W-2)
PExcludable Moving Expense Reimbursements
QMilitary Employee’s Basic Quarters, or Non Taxable Combat Pay
REmployer Contributions To an Archer MSA (Medical Savings Account)
SEmployee Salary Reduction Contributions To A “SIMPLE” Plan
TEmployer Provided Adoption Benefits
UCost of employer-sponsored health coverage (prints as Code DD on W-2)
VIncome from exercise of nonstatutory stock option(s)
WEmployer Contributions to a Health Savings Account
Y409-A – Deferrals under section 409-A non qualified deferred Comp plan
ZIncome under section 409-A non qualified deferred Comp plan
5Designated Roth Contributions under a governmental section 457(b) plan (prints as Code EE on W-2)
6nQSEHRA // Qualified small employer health reimbursement arrangement (prints as Code FF on W-2)
7Income from Qualified equity grants under section 83(i) (prints as Code GG on W-2)
8Aggregate deferrals under section 83(i) elections as of the close of calendar year (prints as Code HH on W-2)

W-2 Boxes 10, 11, and 14 Codes #

CodeDescriptionW-2 Box
1Dependent Care BenefitsBox 10
2Non qualified PlansBox 11
3OtherBox 14

Special Code for NYS45MN Form #

CodeDescription
9Answers YES to the question: Are dependent health care benefits available to any employee?

2015 Deferred Compensation Limits #

Pro-Pay automatically sets these limits for each employee during the transfer of files from the prior year to the new year. Changes can be made to individual employee files at any time thereafter.

Plan TypeIRS CodePro-Pay CodeLimit
401(k)401-kD$17,000
403(b) (Tax Deferred Annuity)403(b)E$17,000
SIMPLE Plan408(p)(2)(E)S$11,500
SEP Plan (Simplified Employee Pension)408(k)(2)(C)F$550
457(b) (salary reduction)457(b)G$17,000

Troubleshooting #

If you encounter issues while setting up deduction codes:

  1. Verify that you are in the correct screen (Employer Deductions Set-up).
  2. Double-check that you have entered the correct code for each deduction type.
  3. Ensure that the deduction amounts do not exceed the annual limits for deferred compensation plans.
  4. If a code is not appearing on the W-2 form as expected, verify that the correct corresponding W-2 code is assigned.

Additional Support #

For further assistance:

  • Access the help menu within the Pro-Pay payroll software.
  • Visit our website at https://www.Paysoft.com for additional resources and support.

Feedback #

We value your input! If you have suggestions for improving this knowledge base article or encounter any issues not addressed here, please contact our support team through the Pro-Pay software or our website.