Drake Accounting - W-2 Box 12 Codes
Article #: 15854
Last Updated: December 05, 2024
The W-2 Box 12 codes that are used in Employees > Deductions & Benefits match the standard W-2 Box 12 Codes. The codes can be found at the following locations:
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On the Drake Software Support Website, under Support > Documents > Manuals, in the Drake Accounting User's Manual. From the Table of Contents, click on Employee Payroll > Setting Up Employee Payroll > Deductions and Benefits Setup > Adding a Deduction. The code list begins on page 308.
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In the IRS Instructions for Forms W-2. From the Table of Contents, click on the page 15 link for, "Specific Instructions for Form W-2". The code list begins on page 18.
| W-2 Code | Description of W-2 Box 12 Code |
|---|---|
| Code A | Uncollected social security or RRTA tax on tips |
| Code B | Uncollected Medicare tax on tips (but not Additional Medicare Tax) |
| Code C | Taxable cost of group-term life insurance over $50,000 |
| Code D | Elective deferrals under a section 401(k) cash or deferred arrangement (plan) (including a SIMPLE 401(k) arrangement |
| Code E | Elective deferrals under a section 403(b) salary reduction agreement |
| Code F | Elective deferrals under a section 408(k) (6) salary reduction SEP |
| Code G | Elective deferrals and employer contributions (including non-elective deferrals) to any governmental or nongovernmental section 457(b) deferred compensation plan |
| Code H | Elective deferrals under section 501(c) (18)(D) tax-exempt organization plan |
| Code J | Nontaxable sick pay |
| Code K | 20% excise tax on excess golden parachute payments |
| Code L | Substantiated employee business expense reimbursements |
| Code M | Uncollected social security or RRTA tax on taxable cost of group-term life insurance over $50,000 (former employees only) |
| Code N | Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (but not Additional Medicare Tax) (former employees only) |
| Code P | Excludable moving expense reimbursements paid directly to a member of the Armed Forces |
| Code Q | Nontaxable combat pay |
| Code R | Employer contributions to an Archer MSA |
| Code S | Employee salary reduction contributions under a section 408(p) SIMPLE plan |
| Code T | Adoption benefits |
| Code V | Income from the exercise of non-statutory stock option(s) |
| Code W | Employer contributions to a health savings account (including employee contributions through a cafeteria plan) to an employee's health savings account (HSA) |
| Code Y | Deferrals under a section 409-A non-qualified deferred compensation plan |
| Code Z | Income under a non-qualified deferred compensation plan that fails to satisfy section 409A |
| Code AA | Designated Roth contributions under a section 401(k) plan |
| Code BB | Designated Roth contributions under a section 403(b) plan |
| Code DD | Cost of employer-sponsored health coverage |
| Code EE | Designated Roth contributions under a governmental section 457(b) plan |
| Code FF | Permitted benefits under a qualified small employer health reimbursement arrangement |
| Code GG | Income from qualified equity grants under section 83(i) |
| Code HH |
Aggregate deferrals under section 83(i) elections as of the close of the calendar year. |
|
Code II |
Medicaid waiver payments excluded from gross income under Notice 2014-7. |