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Tax statements and W-2 reporting

OnePayroll generates Employee W-2 Statements from payroll entry data. The W-2 report uses the W-2 Box mapping on pay types and employee-level W-2 fields to produce the standard IRS Form W-2 output.

W-2 box mapping on pay types

Each pay type can be assigned to a W-2 box that determines where its amounts appear on the W-2 statement. This mapping is configured in the Tax Statement group on the Pay Type card.

Supported W-2 boxes

W-2 Box Caption
1 Wages Tips Other Compensation
2 Federal Income Tax Withheld
3 Social Security Wages
4 Social Security Tax Withheld
5 Medicare Wages and Tips
6 Medicare Tax Withheld
7 Social Security Tips
8 Allocated Tips
9 Advanced Earned Income Credit Payments
10 Dependent Care Benefits
11 Nonqualified Plans
12 Codes (requires a W-2 Box Code)
14 Other (requires a W-2 Box Code)
14 Treasury Tipped Occupation Code (requires a W-2 Box Code)
15 State
16 State Wages Tips Etc
17 State Income Tax
18 Local Wages Tips Etc
19 Local Income Tax
20 Locality Name

Boxes 12, 14, and 14 (Treasury Tipped Occupation Code) require a W-2 Box Code to further identify the specific code or description within the box. W-2 Box Codes are managed through the W-2 Box Codes page (accessible from the Tax Statement Code table).

To assign W-2 boxes

  1. Open a Pay Type card.
  2. In the Tax Statement group, set:
    • W-2 Box — select the appropriate box from the list above
    • W-2 Box Code — required for Box 12 Codes, Box 14 Other, and Box 14 Treasury Tipped Occupation Code

Repeat for each pay type that should appear on the W-2.

Employee W-2 fields

Additional W-2 information is stored at the employee level. Access these fields through the W-2 Information action on the Employee Card.

Field W-2 Box Description
Third-Party Sick Pay Box 13 Indicates third-party sick pay was reported
Statutory Employee Box 13 Indicates the employee is a statutory employee
Retirement Plan Box 13 Indicates the employee participates in a retirement plan
Box 14a Miscellaneous Box 14 Free-text code for box 14 miscellaneous items
Tipped Occupation Code 1 Box 14 First tipped occupation code
Tipped Occupation Code 2 Box 14 Second tipped occupation code

Generate the Employee W-2 Statement

The Employee W-2 Statement report calculates W-2 box amounts from payroll entries and produces the W-2 output.

To run the report:

  1. Open the Employee Card for the employee.
  2. Choose the W-2 Statement action.
  3. The Employee W-2 Statement report runs and generates the W-2 form.

The report produces four copies per employee:

Copy Purpose
Copy 1 State, City, or Local Tax Department
Copy B Employee's federal tax return filing
Copy C Employee's records
Copy 2 Employee's state, city, or local tax return filing

How W-2 amounts are calculated

The W-2 Calculation codeunit aggregates payroll entry amounts by pay type. Each pay type's W-2 Box assignment determines which W-2 box receives the amount. The calculation:

  1. Reads all payroll entries for the employee and tax year.
  2. Groups amounts by the pay type's W-2 Box mapping.
  3. Populates the corresponding W-2 boxes with the totals.

Before generating W-2s

Before running the Employee W-2 Statement, verify the following:

  1. All payroll runs for the year are posted — unposted payroll runs are not included in the calculation.
  2. Pay types have correct W-2 Box assignments — review each pay type's Tax Statement group.
  3. Employee information is current — name, address, and Social Security number must be accurate.
  4. Employee W-2 fields are set — verify Box 13 and Box 14 fields through the W-2 Information action.
  5. Review amounts — compare the W-2 output against payroll register totals.

Troubleshooting

W-2 box shows an unexpected amount

  • Review the pay types mapped to that W-2 box and verify the mapping is correct.
  • Check for payroll adjustments or reversals that may have affected the totals.
  • Confirm all payroll runs for the year are posted.

A pay type's amount doesn't appear on the W-2

  • Open the Pay Type card and verify a W-2 Box is assigned in the Tax Statement group.
  • If the box requires a W-2 Box Code (Box 12, Box 14), confirm the code is set.

State boxes are empty

  • Verify that state income tax pay types have W-2 Box assignments for boxes 15–20.
  • Confirm the employee has state withholding records in the Withholding Information page.

Next steps

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