Box 10 dependent care benefits
The total amount of dependent care benefits that the employer
has paid to the employee or incurred on the employee behalf is displayed in the Box 10
of the W-2.
Specify this information:
- Deduction Class
-
Select a deduction class to identify deductions associated with dependent care benefits.
Note: The total of the amounts associated with the deductions you select is moved to in Box 10 of the W-2 CSV file and is reported on the employee wage electronic file. - Pay Class
- Select a pay class to report amounts paid to a third party for day care and also add those amounts to employees' taxable income as a time record adjustment (any amount in excess of $5,000 is taxable). A Box 10 pay class is used in combination with either a deduction code or a deduction class.