Other Fringe Benefits that do not Fall into Box 12 Codes
Box 14 is a “catch-all” reporting box for your employee’s W-2. You must inform your payroll processor of the values that should be reported in this box. For example, Clergy Housing descriptions and values belong in this box. In addition, you report any other information you want to give to your employee to assist them with reporting these items at tax time. Again, Box 14 is a catch-all for all types of benefits that do not fall neatly into one of the Box 12 categories, such as:
- state disability insurance taxes withheld;
- union dues;
- uniform payments;
- health insurance premiums deduction;
- nontaxable income;
- educational assistance payments;
- minister’s parsonage allowance and utilities;
- certain pension plan contributions
Healthcare Coverage Reimbursement with Intuit Online Payroll Services
If Intuit QuickBooks Online Payroll is your payment processor, you’ll need to take additional steps to ensure employee healthcare coverage reimbursement is accurately recorded on your employee’s W-2 form.
To track the money being paid to an employee on a W-2 for a healthcare reimbursement that adds to their Net Income, we add another contribution type within their employee payroll setup. However, to have it added to the W-2 form, Intuit requires that you contact support between Jan 1st and Jan 9th each year before W-2’s get electronically filed with the IRS. Outside of that period it is a corrections case to have us file an amended form. This process is technically two parts, the correction, which is 20 business days, and then the amendment, which is then an additional 10-15 days. Once the amendment is done, you will be able to get an updated copy of the W-2 to provide to the employee by accessing the archived forms.
Health insurance coverage reimbursement arrangement amounts are always reported on W-2 Box 12, under code FF. In addition, All employee health insurance reimbursement arrangements are governed by the 21st Century Cures Act, specifically, the Qualified Small Employer Health Reimbursement Arrangements (QSHERAs).
Intuit payroll does not automatically report health care reimbursement arrangements on annual W-2 forms. After contacting support to have it added to the employees W-2, you will receive an amended copy of the W-2 that records this additional nontaxable income in Box 12 on the W-2 tax form. W-2 Form Box 12 Code FF Form.
W-2 is the IRS tax form used to report all employee income that has social security or Medicare tax withheld. Form W-2 also reports all compensations and benefits offered during the tax year.
If you use Intuit Payroll services, this resource will help you understand the steps necessary to ensure QSHERA information is properly added to your employee’s W-2 forms.