How do I setup W-2 preferences?

Access the W-2 preferences window

  1. Click the Payer List button.
  2. Choose the desired payer.
  3. Close the Payers & Recipients window.
  4. Select the Settings menu.
  5. Select W-2 Preferences.
  6. Choose the radio button for Applies to all NEW Payers or Applies to Selected Payer: Payer Name, depending on the option desired.
  7. Check the boxes for the options needed for the payer or payers.
  8. Click OK to save the changes.

Setting up default W-2 options

  1. Select the Settings menu.
  2. Select W-2 Settings.
  3. Check or uncheck the boxes as desired.

List of preferences

Automatically Calculate After Each Dollar Amount Entry: Re-calculates all amounts when the user moves to another field after entering an amount on the W-2 Returns Screen.

Calculate Net Pay: Calculates net pay by subtracting deductions and withholding from wages and other compensation.

Include Gross Tips In Net Pay: Adds Gross Tips to the calculated Net Pay amount.

Use 943 Method to Calculate Gross Wages: Calculates Gross Regular wages by adding Medicare Wages, Social Security Withheld, Medicare Withheld, and Medicare Tips.

Check this preference to calculate gross wages when an employer pays a recipient's Social Security and Medicare withheld taxes. This preference is typically used for agricultural employers.

When you check this preference, the software calculates Gross Wages by adding Medicare Wages, Social Security Withheld, SS Tips, and Medicare Tips.

If you use the 943 preference, the following preferences will be turned off automatically:

  • Calculate Social Security and Medicare Wages using Gross Wages
  • Calculate Social Security and Medicare Tips using Gross Wages
  • Add Deferred Compensation to Social Security and Medicare Wages

In addition, if you check any one of the three above preferences, the 943 preference will be turned off.

Calculate Social Security and Medicare Wages Using Gross Wages: Sets Social Security and Medicare Wages equal to the sum of Gross Wages plus Other Compensation plus Gross Overtime.

Add Deferred Compensation to Social Security and Medicare Wages: Adds Deferred Compensation to Social Security and Medicare Wages with the exception of the Designated Roth Plan pre-defined amount types (Roth Contribution Section 401(k) Plan, Roth Contribution Section 403(b) Sal Red, and Roth Contribution Section 457(b) Plan).

Calculate Social Security and Medicare Tips Using Gross Tips: Sets Social Security and Medicare Tips equal to Gross Tips.

Calculate Social Security and Medicare Withheld Amounts: 
Calculates Social Security Withheld as a percentage of Social Security Wages. Calculates Medicare Withheld as a percentage of Medicare Wages plus 0.9% of Medicare Wages and Medicare Tips over $200,000 for the entire year.

Warn if Social Security and Medicare Withheld are Inaccurate: Displays a warning when the Social Security Withheld is not 6.2% of Social Security Wages or Medicare Withheld is not 1.45% of Medicare Wages plus 0.9% of Medicare Wages and Medicare Tips over $200,000 for the entire year. 

Adjust Social Security and Medicare Withheld if Inaccurate: Automatically enters the calculated withholding amount into the Social Security Withheld or Medicare Withheld fields.

Add Deferred Compensation to Total Payments on Form 940:
 Causes the Deferred Compensation amount to be added to Form 940, Part 2, Line 3 . This amount is also included in the FUTA Journal. Roth IRA pre-defined amount types (Roth Contribution Section 401(k) Plan, Roth Contribution Section 403(b) Sal Red, and Roth Contribution Section 457(b) Plan) will not be included.

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