This document describes the effects of situations a district may have on W2 reporting.

The items listed here in red affect balancing between W2PROC and QRTRPT. These items will cause the total gross on W2REPT to be higher than that found on QRTRPT as they apply.

Adoption assistance, cash payment

Payment processed as NC2 pay type

Adoption assistance, Section 125 treated as wages

Set up deduction with type of ADOP

Cost of Life Insurance over $50,000

Use NC1 Pay Type

Dependent Care Benefits

Educational Reimbursements

Contact legal or tax advisor if necessary to determine how payment should be handled. Contact NWOCA if assistance is needed in implementing.

Employee Expense Reimbursements

If paid through warrant and the district wants the amounts to appear on the W2 form. See Reimbursable Employee Expenses for more details. 

Fringe Benefits

Amounts must be entered in the 'fringe benefit' field on the 001 federal records

Health Savings Accounts (Employee portions)

Set up annuity in DEDNAM with type = "I"

Health Savings Accounts (Employer portions)

Set up annuity in DEDNAM with type = "I"

Insurance amounts paid to annuity company

Medical Savings Accounts

Set up deduction type of MSA

Medicare, employer pays employee share

Set up 694/695

Moving Expenses

Must be entered in the 'moving expenses' field on the 001 federal tax record if the amounts are excludable moving expenses as defined by the IRS.

Section 125 plans, treated as non-wages

Set up record with ANN type

SERS/STRS Employer Pickup (Annuitized)

Set up 590/591 record

SERS/STRS Non-annuitized

Set up 400/450 record

Third Party Sick Pay; Taxable

Third Party Sick Pay; Non-taxable

Enter amount on the special 'third party sick pay' field on the 001 federal tax record 

Use of Company Vehicle