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05/24/2012 at 04:51PM PDT
Important Announcement! A planned system-wide upgrade will take place over the Memorial Day Weekend in the US (From Thurs, May 24, 2012 at 6 pm PDT thru Tues, May 29, 2012 at 5 am PDT). This includes QuickBooks, QuickBooks Payroll, Point of Sale, & Salesforce.com. This is only for US based products. This does not affect QuickBooks Online customers! During this time, you can shop, but can’t place orders online, activate products or update account info. We apologize for the inconvenience & thank you for patience while we improve our infrastructure to better serve you. International versions are unaffected. For more info, see our community discussion.
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01/12/09 9:56am PST
Viewed by asker 01/15/09 6:17am PST

AFLAC and HSA deductions do not appear on W-2's

US Desktop Payroll : Enhanced 2008

I have a total of 5 employees. I have several issues with the W-2's I'm trying to print out.

1. 3 of the 5 employees had payroll deductions to AFLAC, both pre-tax and taxable. These deductions show accurately on my Payroll Summary Report as Other Insurance (pre-tax) and Other Insurance (taxable). They are not showing on the W-2 at all.

2. Since September all 5 employees have been contributing to HSA's. I had booked these into QB as Medical Care FSA (pre-tax) and they show accurately on the Payroll Summary Report (I am also not sure if I designated them correctly - I didn't see an HSA so I picked the closest one). They are not showing on the W-2 at all.

The only thing that is showing correctly on the W-2's is their 401(k) contributions.

I'd appreciate any help you can give me.

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01/12/09 10:02am PST

I'm noticing that the numbers in boxes 1,3 & 5 are correct but shouldn't these deductions be reflected in boxes 12 and/or 14?

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01/12/09 10:28am PST

When you set up these deductions , such as Aflac, thru payroll lists, what did you check as the tracking - that determines where it is placed on W2. Same should apply for HSA. D

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01/12/09 10:36am PST

Are the HSA contributions by the employees part a salary deferral plan (similar to their 401K contributions)?

If so they should be reported in box 14, along with any Employer contributions to the HSA. However, QB does NOT have a correct "Tax Tracking" item to properly report the employee contributions. You will have to manually enter them on the W2's. Again, this is only if the contributions were made (pre-tax) as part of a Salary deferral Plan. If made post tax, then it does not need to be reported on the W2. The Other Insurance "taxable" also does not need to be reported on the W2.

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01/12/09 11:22am PST

I AM NOT ABLE TO PRINT W-2 FORM AND I CAN NOT UPDATE PAROLL.

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01/12/09 12:03pm PST

OK, so I understand this correctly, if the numbers in boxes 1,3 & 5 are correct (yes, the pre-tax AFLAC and pre-tax HSA were salary deferrals like the 401(k) ), I need to manually put the HSA contributions in box 12? And what code would be for the HSA? What code for the AFLAC?

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01/12/09 1:01pm PST

Some googling is telling me that as long as the box 1,3 & 5 numbers are correct, I am not required to put the HSA and AFLAC deductions in box 12? Is this correct?

Also, I should manually put employer HSA contributions in box 12 with a Code W. Right?

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01/12/09 2:00pm PST

No. Employer HSA contibutions are reportable in Box 12 Code W, but you should not have to input that amount manually to the W2 if you set it up correctly in QB. It should go there automatically. If not and you are sure that boxes 1,3, and 5 are correct then just manually input it.

It is the EMPLOYEE HSA contributions IF made under a salary deferral paln that you would have to manually add to the W2 (because QB has no tracking item to put it there correctly). If there were also Employer HSA contributions you cambine the amounts and report that amount.

The post tax AFLAC does not need to be reported anywhere. If the Emploee HSA contributions are also post tax, they don't need to be reported anywhere on the W2.

Confusing, huh. It would be much easier if QB would just correct this oversight.

I hope this helps.Let us know.

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01/12/09 2:06pm PST

My employer HSA contributions were made by check at a different time than paychecks were drawn so I didn't put them on the paycheck so they didn't go through payroll, if that makes sense. So I see where I have to manually put those in with a Code W.

The Employee HSA pre-tax contributions and the AFLAC pre-tax contributions are reflected in boxes 1,3 & 5 but not box 12. If I read what you're saying correctly, I would add those manually to box 12. Do they all go under the Code W?

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01/13/09 4:08am PST

I see what you did. I think you are correct for the HSA amounts, you'll have to add them together and enter in box 12 Code W. What was the AFLAC pre tax for? If insurance under a 125/POP arrangement, then it does not need to be reported at all. Although some report it in Box 14. At any rate it is not reported in Box 12 nor code W.

I hope this helps. Let us know.

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01/13/09 7:28am PST

I am probably making this more complicated than it is. The AFLAC is for insurance but not under any plan. We signed up with AFLAC, they told me how much pre-tax and how much after-tax. I do that for every paycheck and pay them monthly. The HSA is taken out pre-tax every paycheck and I send it in.

If I'm reading your post correctly, I'm going to add the employer and the employee pre-tax HSA together under Code W in box 12 and do nothing with the pre-tax AFLAC.

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We have always printed our W2's from QB and this have never been an issue in the past. There is something going on with the QB software.  It should automatically pull the pre-tax amount into the Total Medicare Wages & TIps.  I'm trying to get an answer to see if they are going to send out an update with a fix.  Otherwise, you'll need to add the pre-tax amount into their total wages.

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