Miscellaneous Pre-Tax Employee Deduction Pay Codes

Code Name	Description	Additional Information	W-2 box
Commuter Checks	Employee deduction for the employee's contribution to pay for commuter checks Note the following about Internal Revenue Code Section 132 and the Transportation Equity Act for the 21st Century (TEA-21). Employers can offer employees the opportunity to set aside a portion of their salary to pay for certain transportation expenses. The employee is not taxed on amounts set aside and used for qualified expenses (pre-tax dollars are used to pay the commuting expenses). For IRS information specific to Transportation (Commuting) Benefits, see http://www.irs.gov/pub/irs-pdf/p15b.pdf.	Employee payment for vouchers that the employee redeems for transit passes, tickets or tokens and/or payment for vanpool fares. Employers provide these tax-free vouchers to employees in amounts up to the federally mandated monthly limit. Employers may also provide commuter checks in the form of cash or cash equivalents in lieu of vouchers. Commuter checks are a pre-tax employee deduction benefit, either as a substitute for taxable salary or a supplemental benefit.
Fringe Benefits Offset	This code should be used as a base type for all deduction codes used to offset the fringe earnings. Such deduction codes should not be used for any other purposes.	Fringe earnings should not affect a net pay of the check. It is achieved by offsetting every fringe earning on the check with a deduction of the same amount as matching earning.
Health Ins Employer Pd-2+ pct Shrhldrs	This type was designed as an offset to a fringe earning type with a matching name. Do not use this type. Instead, use the generic offset type Fringe Benefits Offset.		box 14 with label Health Ins

Code Name

Description

Additional Information

W-2 box

Commuter Checks

Employee deduction for the employee's contribution to pay for commuter checks

Note the following about Internal Revenue Code Section 132 and the Transportation Equity Act for the 21st Century (TEA-21). Employers can offer employees the opportunity to set aside a portion of their salary to pay for certain transportation expenses. The employee is not taxed on amounts set aside and used for qualified expenses (pre-tax dollars are used to pay the commuting expenses).

For IRS information specific to Transportation (Commuting) Benefits, see http://www.irs.gov/pub/irs-pdf/p15b.pdf.

Employee payment for vouchers that the employee redeems for transit passes, tickets or tokens and/or payment for vanpool fares. Employers provide these tax-free vouchers to employees in amounts up to the federally mandated monthly limit. Employers may also provide commuter checks in the form of cash or cash equivalents in lieu of vouchers. Commuter checks are a pre-tax employee deduction benefit, either as a substitute for taxable salary or a supplemental benefit.

Fringe Benefits Offset

This code should be used as a base type for all deduction codes used to offset the fringe earnings. Such deduction codes should not be used for any other purposes.

Fringe earnings should not affect a net pay of the check. It is achieved by offsetting every fringe earning on the check with a deduction of the same amount as matching earning.

Health Ins Employer Pd-2+ pct Shrhldrs

This type was designed as an offset to a fringe earning type with a matching name. Do not use this type. Instead, use the generic offset type Fringe Benefits Offset.

box 14 with label Health Ins

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