Section 125 Insurance is incorrectly included in gross wages on the W2

[Ralph]

It is correctly recorded in the FICA, Medicare, and the State wages.

[Paul Mayer]

Without your telling me the exact problem, my guess is that it is not setup correctly in the company deduction settings.

See this page in the help file:

http://zpay.com/pw-online-help/DeductionsSettingsTab.htm

[Ralph]

It is correctly recorded in the FICA, Medicare, and the State wages.

Hello, and thank you for your reply. The boxes originally checked on the company deduction screen were FIT, FICA, MED, FUTA & SUTA. We added DD, and 12a, which made no difference.
I have never encountered a case where FIT wages and SIT wages are different. But they are here.

Thanks for whatever ideas you have.

[Paul Mayer]

You said FIT, FICA, MED, FUTA & SUTA were checked which means that everything checked is exempt from tax on that deduction. SIT is not checked so the taxable wages are lower for FIT than SIT.

FIT Federal Income Tax
SIT State Income Tax

[Ralph]

You said FIT, FICA, MED, FUTA & SUTA were checked which means that everything checked is exempt from tax on that deduction. SIT is not checked so the taxable wages are lower for FIT than SIT.

FIT Federal Income Tax
SIT State Income Tax

Hi.

Sorry, yes SIT was also checked, and it calculates properly. That is where FIT wages and SIT wages DO NOT AGREE, which should NEVER happen.....in Illinois.
FIT wages are not calculating properly.

Thank you again.

[Paul Mayer]

OK, you said "FIT wages are not calculating properly."

Are they not being reduced on the W2 Forms and 941 Form? If so, you forgot to check the 941 box when setting up the deduction. See item 7 on this page in the help file:

http://zpay.com/pw-online-help/DeductionsSettingsTab.htm

[Ralph]

Thank you very much.