Assign Special Handling Information

You assign special handling information to a year-end ID to specify amounts to add to existing taxable wages and to specify amounts to report separately in the W-2 detail boxes 10 through 14. You also assign special handling information to include PDBA information in the electronic filing flat file in the proper format.

To include on year-end forms any amounts that are associated with PDBAs, you must enter a special handling description on the PDBA, and then attach the PDBAs to the special handling code tables. These tables correspond to the types of earnings defined by the Internal Revenue Service (IRS). The system determines where on the year-end form to print the deduction, benefit and accrual amounts based on the special handling code table to which the PDBA is attached.

Attach each PDBA to the code that is associated with the box in which you want the amount of that PDBA to be printed. For example, if you want the amount of a PDBA to print in Box 14, assign that PDBA to a type of earnings that the system prints in Box 14.

You can assign multiple PDBAs to each special handling code. When a special handling code has one or more PDBAs assigned to it, it is marked with a check mark on the Special Handling Code Revisions form.You can also assign a single PDBA to multiple special handling codes.

Note: On the 1099-R form, any amount that represents a federal wage in the Federal A record of F06136 is reported in Box 2a. If no federal wage exists, the amount of gross distribution that is set up in special handling for Box 1 is reported in Box 2a. The system also derives the amount of federal tax withheld from the Tax History table if only one pay type is included in special handling information for Box 2a. If more than one pay type is included in special handling information for Box 2a, Box 2b is marked taxable amount not determined.

For processing 1099s, you must enter all of the pay types in special handling for gross distributions. You require this entry for 1099-Rs to generate a form and also for 1099-MISCs for electronic filing.

Note:

Do not add pay types back to Boxes 1, 3, 5, 16, or 18 on the W2 form. The system automatically adds wages to these boxes by using information from the Tax History table. Adding pay types back to these boxes results in double reporting of wages.

For more information about which amounts to add to year-end forms and electronic filing, contact the local IRS office.