Year-end is no doubt a stressful time of year for the payroll department. With all of the extra work to complete, there are going to be confusing parts of the process. Our client solutions team knows the challenges well and can help with the complicated questions you have. We’ve put together a frequently asked questions list to better serve you and your business:
Q1: Why doesn’t the gross wage on my employee’s last check stub of the year match my W-2?
A: The value in Box 1 on the W-2 is not Gross wages, but rather Federal Taxable Wages. If the employee has any pretax deductions such as medical and dental, these values will be excluded. Any 401k/457b/403b is not taxable by Federal, so these contributions will be excluded. Once all pretax deductions and 401k is subtracted from the employee’s gross, this will be the Box 1 wages displayed.
Q2: Will the fringe benefit display separately on the W-2?
A: Box 14 of the W-2 is the “Other box”. If the company elects to display this on the W-2 separately, the fringe benefit can be listed here. Otherwise, the fringe amount will only be included in the taxable wages.
Q3: When will the W-2’s be ready for employees?
A: If Dominion is scheduled to print, we aim to have these printed, packaged and delivered by the end of the 3rd week in January. If the Company is scheduled to print, we aim to have these released by the first full week in January. Once this email notification is sent, company admins will be able to log in and print the W-2s as well as approve them for employees who have consented to receive the W-2 online.
Q4: Our company is scheduled to print the W-2s. Do I need special paper and envelopes to do this?
A: No, the W-2s can be printed on regular computer printer paper. The W-2 envelopes can be ordered through Dominion ($10 per 100 envelopes), otherwise these can be purchased at any office supply store.
Q5: I received my W-2 package today from Dominion, but I notice I am missing some. Why is this?
A: When Dominion is scheduled to print the W-2s, we will not print those who have consented to receive their W-2 online.
Q6: Why is the amount of the employees Box 12, Code W, so high? The employee only contributed $1,000.
A: Box 12, Code W includes both the employer and employee portion of Health Savings Account, not only what the employee contributed.
Q7: I have a gift card and auto fringe to record for W-2 purposes with several of my employees. How do I do this?
A: Depending on the taxation of the fringe benefit, this can be entered as either an adjustment (FICA taxes only) or through the Pay Data Grid (all taxes) in the software. This amount will be included in the employee’s taxable wages, be taxed, and then be deducted back out of their paycheck.
Q8: Last week, I processed our last payroll of the year, but I forgot a bonus check for an employee and need to enter a third party sick adjustment. What should I do?
A: We allow clients to process any last minute adjustments, checks, voids, payrolls, etc. through 11:59PM on 12/31. These are done as a special payroll and typically have a check date of 12/31 to be included in 2015 wages and W-2s.
If you are interested in other year-end resources, check out our year-end resources page below!