APS Common W-2 Adjustments

Applicable taxes: Federal W/H, Social Security, Medicare, State W/H, FUTA, and SUTA

Most employers only withhold Social Security and Medicare tax, so please inform R365 Support of your desired withholding. If you already have this income setup, you can review the tax settings in the Admin console by selecting the Incomes link on the left-hand side of the page.

After taxes have been applied to the benefit, the total benefit amount will automatically be removed from the net pay. You do not have to set up an offsetting deduction for the benefit amount. Since these are non-cash items, they are not included in percent of gross deductions such as a 401k or 403b.

Applicable taxes: Fed W/H, Social Security, Medicare, and State W/H

This benefit is included in the taxable gross pay. The employer has the option of only withholding Social Security and Medicare tax on this benefit, so please inform R365 Support of your desired withholding. If you already have this income setup, you can review the tax settings in the Admin console by selecting the Incomes link on the left-hand side of the page. For terminated employees, Social Security and Medicare taxes do not need to be withheld, as there are codes for Box 12 on the W-2 to report the uncollected employee portions strictly for Excess Group Term Life. Please submit a R365 Support ticket that includes the terminated employees and taxable income amounts for excess GTL.

A true-up contribution is an employer contribution to an employee's 401k plan that covers the difference in what the employer actually matched throughout the year and what the employer should have matched. This typically happens with highly compensated employees that meet the maximum annual contribution amount early in the year. If your 401k plan has a true-up provision, the additional match does not have to be recorded in the payroll system, since the additional match is typically paid by the employer after the end of the calendar year.

Moving expense reimbursements are considered fully taxable for the tax year 2018 to 2025. Only certain expenses for military moves qualify for tax-free status.

Qualified transportation fringe benefits remain nontaxable to the employee, except with regard to the up to $20-a-month bicycle commuting benefit that was eliminated.

Federal supplemental wage rate decreased in 2018 to 22% from 25% for any supplemental wages paid up to $1 million, which remains in effect. Any supplemental wages paid in excess of $1 million were decreased to 37% from 39.6%.