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JAC2
Level 3

Adding Taxable Fringe to W-2 (wasn't added to employee's final paycheck)

Typically we add the taxable portion of Group Term Life and STD/LTD to our employee's last payroll of the year in December.  However, we had two employees who quit early in the year, and we did not add the benefits to their final payroll check at that time.  We have the Payroll items created for Group Term and STD/LTD Taxable Prem (because we use them each year to add those premiums to the last payroll for the remaining employees).  I need the premiums to show up on the W-2 correctly as taxable for the terminated employees, but am not sure how to do this now since the employees are no longer receiving a paycheck.  I just spent over an hour on the phone with Quickbooks support who seemed to be just as unsure as I am about this!

 

Thanks!

5 Comments
john-pero
Community Champion

Adding Taxable Fringe to W-2 (wasn't added to employee's final paycheck)

Since their W2s were due in their hands by this past January 31st with no deferral and that they have probably filed their taxes based on the W2s you did give them then other than this being water over the dam you and the employees will have some amended returns to deal with.

 

That being said, have you tried to create a zero dollar paycheck for each employee for the period that included 12/31 and the only item being the fringe benefit?

JAC2
Level 3

Adding Taxable Fringe to W-2 (wasn't added to employee's final paycheck)

Not last years W-2s.  Trying to be proactive for this year's W-2s. And yes, can't seem to get a zero payck.

john-pero
Community Champion

Adding Taxable Fringe to W-2 (wasn't added to employee's final paycheck)

While this article relates to online payroll I would think the process would be the same for desktop. Scroll down to the section on Adjustments  https://quickbooks.intuit.com/learn-support/en-us/worker-benefits/add-fringe-benefits-to-paychecks/0...

JAC2
Level 3

Adding Taxable Fringe to W-2 (wasn't added to employee's final paycheck)

Thanks, but I've already consulted the article.  There seems to be a "fringe benefit adjustment" somewhere that I can do, however, I haven't found guidance yet on that.

john-pero
Community Champion

Adding Taxable Fringe to W-2 (wasn't added to employee's final paycheck)

Here is how to create a zero dollar paycheck. It doesn't refer to fringe benefits but might work the same.  https://quickbooks.intuit.com/learn-support/en-us/receive-payments/create-a-zero-net-paycheck/00/370...

 

The other "nuclear" option is to go back to their last paychecks and edit them.  Net pay must remain the same after the addition of the fringe benefits.  It is an after net addition but subject to FWT for which you would gross up the amount and apply all taxes due to that difference to get to same net pay as before

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