Setting Up Pay Types for Contract and Pension Employees

Access the U.S. Legislative/Regulatory form.

W2 Special Handling Description

Enter the IRS Distribution code that you want to print in Box 7 of the 1099 form. The first position in the W-2 Special Handling Description field represents the IRS Distribution Code that prints in Box 7 of the 1099-R form. Enter code EPP in this field to print excess golden parachute amounts on Form 1099-MISC.

Note: On the 1099-R form, any amount that represents federal wages in the Federal A record of F06136 is reported in Box 2a, as long as the gross distribution is taxable. If no amount represents federal wages, then the amount of the gross distribution, as set up in special handling for Box 1, is reported in Box 2a if the gross distribution is an IRA. The system also derives the federal tax withheld amount from F06136.