Tech Tip: What’s Included in Box 12 of the W-2 Form?

Q: Will Box 12 of the W-2 Form show the sum of the employee deduction and the employer matching/contribution of an employee’s health savings account (HSA)?

A: The amount displayed in Box 12 of the W-2 Form is the sum of the employee deduction and employer matching/contribution for deductions with an assigned W-2 Code (e.g., Code “W” for HSA). Note that the employer matching/contribution will be automatically included if it is calculated during Apply Payroll/Payment (i.e., the Deduction Maintenance ► Employer Matching/Contribution (M/C) ► Calculate During Apply Payroll checkbox is marked when payroll is applied). If the employer matching/contribution is posted using the Post Employer Matching/Contribution function, then you must manually update the amount in Box 12. You can do this using the W-2 Information Update function from the Maintenance menu.