W-2 Boxes 12, 14, 10, 11
Overview
Set up deduction codes for accurate W-2 reporting. These codes are essential for compliance with tax regulations and proper reporting of employee compensation and deductions.
Setting Up Deduction Codes
To set up deduction codes in ProPay:
- Access the Employer Deductions Setup screen
- Enter the appropriate code for each deduction type
W-2 Box 12 Codes
| Code | Description |
|---|---|
| A | Uncollected Social Security tax on tips |
| B | Uncollected Medicare tax on tips |
| C | Cost of group term life insurance over $50,000 |
| D | 401(k) |
| E | 403(b) |
| F | 408(k)(6) Salary reduction SEP |
| G | 457(b) |
| H | 501(c)(22)(D) |
| I | Designated Roth contributions to a section 401(k) plan (prints as code AA on W-2) |
| J | Sick pay not includable in income |
| K | Tax on excess golden parachute payments |
| L | Certain employee business expense reimbursement |
| M | Uncollected FICA tax on cost of group term life insurance |
| N | Uncollected Medicare tax on cost of group term life insurance |
| O | Designated Roth contributions to a section 403(b) plan (prints as code BB on W-2) |
| P | Excludable moving expense reimbursements |
| Q | Military employee's basic quarters, or non-taxable combat pay |
| R | Employer contributions to an Archer MSA (Medical Savings Account) |
| S | Employee salary reduction contributions to a "SIMPLE" plan |
| T | Employer provided adoption benefits |
| U | Cost of employer-sponsored health coverage (prints as code DD on W-2) |
| V | Income from exercise of nonstatutory stock option(s) |
| W | Employer contributions to a health savings account |
| Y | 409-A - Deferrals under section 409-A non-qualified deferred comp plan |
| Z | Income under section 409-A non-qualified deferred comp plan |
| 5 | Designated Roth contributions under a governmental section 457(b) plan (prints as code EE on W-2) |
| 6 | nQSEHRA // Qualified small employer health reimbursement arrangement (prints as code FF on W-2) |
| 7 | Income from qualified equity grants under section 83(i) (prints as code GG on W-2) |
| 8 | Aggregate deferrals under section 83(i) elections as of the close of calendar year (prints as code HH on W-2) |
W-2 Boxes 10, 11, and 14 Codes
| Code | Description | W-2 Box |
|---|---|---|
| 1 | Dependent care benefits | Box 10 |
| 2 | Non-qualified plans | Box 11 |
| 3 | Other | Box 14 |
Special Code for NYS45MN Form
| Code | Description |
|---|---|
| 9 | Answers YES to the question: Are dependent health care benefits available to any employee? |
Deferred Compensation Limits
ProPay automatically sets these limits for each employee during the transfer of files from the prior year to the new year. Changes can be made to individual employee files at any time thereafter.
| Plan Type | IRS Code | ProPay Code | 2026 Limit | Age 50+ Catch-Up |
|---|---|---|---|---|
| 401(k) | 401-k | D | $23,500 | $31,000 ($7,500 catch-up) |
| 403(b) (Tax Deferred Annuity) | 403(b) | E | $23,500 | $31,000 ($7,500 catch-up) |
| SIMPLE Plan | 408(p)(2)(E) | S | $16,500 | $20,000 ($3,500 catch-up) |
| SARSEP (Salary Reduction SEP) | 408(k)(6) | F | $24,500 | $32,500 ($8,000 catch-up) |
| 457(b) (salary reduction) | 457(b) | G | $23,500 | $31,000 ($7,500 catch-up) |
Note: Deferred compensation limits are adjusted annually by the IRS. Verify current limits at the start of each calendar year at https://www.irs.gov/retirement-plans.
Troubleshooting
Deduction code not appearing on W-2
- Verify that you are in the correct screen (Employer Deductions Setup)
- Double-check that you have entered the correct code for each deduction type
- Ensure that the correct corresponding W-2 code is assigned
Deduction amounts exceed annual limits
- Ensure that the deduction amounts do not exceed the annual limits for deferred compensation plans
- ProPay will automatically enforce limits set during year-end file transfer