Verifying W-2 and payment descriptions

Before you create your W-2 forms, ensure that you specified the correct W-2 descriptions on United States Tax Authority (PR06.1) for the tax authorities you process W-2s for. The Payroll application prints the W-2 description you define for the tax authority on the W-2 forms.

When you print W-2s that have local taxes, the description that prints can be taken from either the Payment Description field of PR05.1 or the W-2 Description field from PR06.1. If you have multiple local deductions tied to one tax authority, then you can select to print the Payment Description from PR05. The individual Deduction Payment Description will print instead of the shared Tax Authority W-2 Description. The description that prints depends on the parameters selected on the Local W-2 Description field of PR297.

When you print W-2s that have Pennsylvania local taxes, the description that prints can be taken from either the W-2 Description field of PR06 for the local authority or from the PA TCD W2 description found in the Addl EIN button of the PR06 for your Pennsylvania state tax authority. For the latter option, you can define the W2 description by company and/or process level at the PA state level to apply to all locals within the state. This is referenced based on the company/process level in the employee's quarterly deduction file for each local tax withheld. Use this option if the same W2 description applies to multiple local taxes and is identifiable by company and/or process level. For this option, you must specify a "Y" in data item "PA Local combine by W2 Desc" in Employee Year-End Parameters (PR27.1) under topic W6 W2 Other Option. Additionally, PR297 will combine by W2 description the local tax amounts for reporting in Box 18, 19 and 20 (taxable wages will not be doubled as the city tax is used for taxable if both city and school district taxes exist).