Wage Garnishment and W-2

[acctax01]

For Year End processing of W-2, should the deduction for garnished wages show up on and employee’s W-2 in box 12 or 14? If so, is there a code associate with this deduction? Thanks.

[Paul Mayer]

You would need to contact your accountant for the answer on that. We give you the tools to report but for the exact box and code, you need to consult with a CPA or download the instructions from the SSA on what goes where on the W2 Form.

[acctax01]

Thanks for the reply. I checked with the IRS and was told that wage garnishment for Child Support does not need to be reported on an employee’s W-2, however, if an employer wants to keep track of the garnishment he/she should use box 14 with no special code. My question now is when I setup the deduction for wage garnishment in my company profile will PayWindow automatically place this information in box 14 on the W-2? If not, where do I place this information in PayWindow so that is shows up in box 14 on the W-2? Thanks.

[Paul Mayer]

Thanks for the reply. I checked with the IRS and was told that wage garnishment for Child Support does not need to be reported on an employee’s W-2, however, if an employer wants to keep track of the garnishment he/she should use box 14 with no special code. My question now is when I setup the deduction for wage garnishment in my company profile will PayWindow automatically place this information in box 14 on the W-2? If not, where do I place this information in PayWindow so that is shows up in box 14 on the W-2? Thanks.

When you set up the deduction, you tell it what box to put it in on the W2 Form. See the Tutorial "How to setup and use non-taxable deductions" at http://zpay.com/help or on your CD under View Tutorials. DO NOT MARK THAT HAS NON-TAXABLE though as it would be a taxable deduction. Just want you to see where you select the box to use in that tutorial.