We need to report income from exercise of non statutory options for our employees on W2 in 2021. I contacted Intuit Online Full Service Payroll Service and they told me they don't support any stock options income on W2. So they will not be able to process that income and related payroll taxes and W2 reporting for us.
What are my options :-
1. I can switch to a new payroll provider who handles stock options related reporting. This is my last choice.
2. Continue showing income from exercise of non statutoty options as other income and take care of payroll taxes withheld and remittance. At the year end, file corrected W2C for affeceted employees on my own.
I appreciate you for contacting our phone support team, @SheelaGrid.
Let me provide an additional option. You can consider using a third-party application to accomplish this task.
I can help run a search to find one app for you. Here’s how:
I also suggest visiting our QuickBooks Blog to have the latest and updates from QuickBooks, including product improvements.
Stay in touch if you have any other concerns or questions. I’ll be right here to answer them for you. Have a great rest of the day.
Thanks for posting here, @One1,
I want to make sure you're able to send your tax forms with the correct information.
Since you're using a Full-Service Payroll, we will need you to reach out to our Support Team. They can assist you with the W-2 box 12 codes and post it correctly on the form.
Here's how to contact them:
Let me know if there's anything else I can help you. I'll be right here to assist you with your payroll forms and take care of other concerns in QuickBooks. Have a nice day!
@Jen_D Can a full instruction be provided how to calculate the correct taxes (supplemental income), to include these amounts to all tax forms and to show the amount as Code V on W2?
We contacted the Support team and could not receive a full answer to solve this problem
Thanks in advance
I'm here to share details on how Intuit Online Payroll (IOP) calculates and shows the amount as Code V on Form W2s, @One1.
Form W-2 box 12 includes the amounts from Nontaxable per diems, Group term life insurance (GTLI) taxable amounts, Company health savings accounts (HSA), Pretax health savings accounts (HSA), and Retirement plans (401(k), 403b, SAR SEP, etc.). Code V on W-2 box 12 includes your income from the exercise of non-statutory stock options. This amount is already included as taxable income in Boxes 1, 3, and 5.
You can check out this article to learn more about the W-2, box 12 codes in IOP: Reports and info about W-2 forms.
Also, you can either check with a tax adviser or contact our Full-Service Payroll Care team again (as directed by my colleague above). This way, you're able to get additional info about calculating supplemental income taxes.
Additionally, here are the articles that provide answers to the most frequently asked questions about Form W-2:
Let me know in the comments below if you have other Form W-2 concerns or inquiries about tax calculations in IOP. I'm just around to help. Take care always.