Box 12 codes

If the employee has more than four items reportable in Box 12, the program generates multiple W-2s containing employee and company information and information in Box 12 only. For The Commonwealth of Northern Mariana Islands, only four Box 12 codes are reported.

Note: Box 12 contains many items that may be reportable to an employee. These items are printed in Box 12 of the W-2 CSV file with the appropriate codes.

Specify this information in the Pay Class section:

Code C Group Term Life

Select the pay class that shows the cost of group term life insurance over $50,000.
Note: If you select a pay class in this field, it overrides all amounts you specify for all employees in the Code C Group Term Life Reportable Insurance field in the employee year-end parameters.

Code J Non-Taxable Sick Pay

Select the pay class that shows non-taxable sick pay.
Note: If you select a pay class in this field, it overrides all amounts you specify for all employees in the Code J Non-taxable Sick Pay field in the employee year-end parameters.

Code L Business Expense

Select the pay class that shows non-taxable employee business expenses.
Note: If you select a pay class in this field, it overrides all amounts you specify for all employees in the Code L Business Expense field in the employee year-end parameters.

Code P Qualified Moving Expense

Select the pay class that shows qualified moving expenses.
Note: If you select a pay class in this field, it overrides all amounts you specify for all employees in the Code P Qualified Moving Expense field in the employee year-end parameters.

Code Q Non-Taxable Combat Pay

Select the pay class that shows Military Employee Basic Quarters, Subsistence, and Combat Zone Compensation to satisfy IRS reporting requirements.

Code T Adoption Benefits

Select the pay class or deduction class that shows the amounts paid by the employer to the employee for qualified adoption expenses.

The value in the Code T Adoption Benefits field is a deduction class or a pay class or both.

Code V Non-Statutory Stock Option

Select the pay class that shows the income from the exercise of non-statutory stock options to print in Box 12 of the W-2 CSV file using Code V and display on the W-2 electronic file.
Note: If you select a pay class in this data item, it overrides all amounts you specify for all employees in the Code V Non-Statutory Stock Option field in the employee year-end parameters.

Code W Health Savings Account

Select the pay class that shows employer or employee contributions to an employee's health savings account.

The total amount for the deductions associated with the deduction codes in this class prints under Code W in Box 12 of the W-2 CSV file and is reported on the employee wage electronic file.

This field is used in combination with the Health Savings deduction class.

Code Y 409a Deferral

Select the pay class that shows earnings under section 409A non-qualified deferred compensation plans.

The total amount for pay associated with the pay class prints under Code Y in Box 12 of the W-2 CSV file and is reported on the employee wage electronic file.

This field is used in combination with the 409A deduction class.
Note: If you select a pay class in this field, it overrides all amounts you specify for all employees in the Code Y 409A Deferral Earnings field in the employee year-end parameters.

Code Z 409a Income

Select the pay class that shows income included under a section 409A from a non-qualified deferred compensation plan.

The total amount for pay associated with the pay class prints under Code Z in Box 12 of the W-2 CSV file and is reported on the employee wage electronic file.

Code FF Qualified Small Employer Health Reimbursement

Select the pay class that represents income included under the Qualified Small Employer Health Reimbursement Amount (QSEHRA). The total amount for pay associated with the pay class prints under Code FF in Box 12 of the W-2 CSV file and is reported on the employee wage electronic file.

Code GG Income Qualified Equity Grants

Select the pay class that represents income included under the Income from Qualified Equity Grants Under Section83(i). The total amount for pay associated with the pay class prints under Code GG in Box 12 of the W-2 CSV file and is reported on the employee wage electronic file.

Code HH Aggregate Deferrals - Section 83i

Select the pay class that represents income included under the Aggregate Deferrals Under Section 83(i) Elections as of the Close of the Calendar Year. The total amount for pay associated with the pay class prints under Code HH in Box 12 of the W-2 CSV file and is reported on the employee wage electronic file.
Specify this information in the Deduction Class section:

Code G Override 457b

Specify a deduction class to override the amount reported for 457(b).

The year-end programs report the history for the deduction codes included in this deduction class and ignore the tax status 04 and tax status 22.

Code H 501c

Select the deduction class that shows 501(c) deductions.

Code K Excise Tax

Select the deduction class that shows the 20% excise tax on excess golden parachute payments.

Code R Medical Savings Account

Select the deduction class that shows employee contributions to an employer medical savings account.

Box 12 medical savings account information is not reported on the W-2 electronic file. Do not change your selections in the employee year-end parameters after you run W-2 Reporting.

Code S Simple Retirement

Select the deduction class that shows employee contributions to a simple retirement account.

Box 12 simple retirement account information is not reported on the W-2 electronic file. Do not change your selections in the employee year-end parameters after you run W-2 Reporting.

Code T Adoption Benefits

Select the pay class or deduction class that shows the amounts paid by the employer to the employee for qualified adoption expenses.

The value in the Code T Adoption Benefits field is a deduction class or a pay class or both.

Code W Health Savings Account

Select the deduction class that shows the employer or employee contributions to an employee's health savings account.

The total amount for the deductions associated with the deduction codes in this class prints under Code W in Box 12 of the W-2 CSV file and is reported on the employee wage electronic file.

Code Y 409a Deferral

Select the deduction class that shows the employer or employee contributions to an employee's health savings account.

The total amount for the deductions associated with the deduction codes in this class prints under Code W in Box 12 of the W-2 CSV file and is reported on the employee wage electronic file.

Code AA Roth 401k

Select the deduction class that designates Roth contributions under a section 401(k) plan. The total amount for the deductions associated with the deduction codes in this class prints under Code AA in Box 12 of the W-2 CSV file and is reported on the employee wage electronic file.

Code BB Roth 403b

Select the deduction class that designates Roth contributions under a section 403(b) salary reduction plan. The total amount for the deductions associated with the deduction codes in this class prints under Code BB in Box 12 of the W-2 CSV file and is reported on the employee wage electronic file.

Code DD Employer Health Coverage

Select the deduction class that shows the cost of employer sponsored health coverage. The total amount for the deductions associated with the deduction class prints under Code DD in Box 12 of the W-2 CSV file and is reported on the employee wage electronic file. Additionally, you can use the Code DD ER Health Coverage field in the employee year-end parameters to specify an override amount or an additional amount. The override amount prints under Code DD. The additional amount is added to the YTD amount associated with the deduction class and prints under Code DD.

For guidance, visit http://www.irs.gov.

Code EE Roth 457b

Select the deduction class that designates Roth contributions under a governmental section 457(b) plan. The total amount for the deductions associated with the deduction class prints under Code EE in Box 12 of the W-2 CSV file and is reported on the employee wage electronic file.
Specify this information in the Miscellaneous section:

Code M, N Uncollected Social Security, Medicare for Group Term Life

Select the employee eligibility group that identifies former employees and retirees who are eligible for group term life insurance over $50,000.

When you run W-2 Reporting, the application checks employees assigned to this group for uncollected Social Security tax on group term life insurance over $50,000.