Track Employee Benefits
- On the Payroll tab, click .
- Enter the necessary information.
- Name—Enter a unique name for the benefit.
- W2 Letter—Enter a letter code for this type of benefit from the list on the back of the W-2 form. The code letter prints in Box 12 of the W-2. Some common codes used for Box 12 include:
- Code C – Taxable cost of group-term life insurance over $50,000.
- Code AA – Designated Roth contributions under a section 401(k) plan.
- Code DD – Cost of employer-sponsored health coverage.Note: The Affordable Care Act requires employers to report employer-provided health coverage costs on employees' Form W-2. For more information, see the IRS requirements for reporting employer-provided health coverage.
- Exempt From—Select the appropriate checkboxes if the benefit is exempt from that tax. If an item is selected as exempt, the benefit is subtracted before taxes are calculated.
- At the top, click Save.