Setting up Payroll For W-2: Deductions Setup

The Payroll→W2→Validate Deduction Setup screen will help ensure that everything that needs to be setup is setup.  

Just be aware the State Disability Insurance is not used by most districts (This is noted on the screen).  Everything else should have a green check mark as the status indicator. 

If everything (except SDI) is not green than there is very high change that the W2s will be wrong.

There are four separate panels on the Deduction Setup Validation screen.  Each of these is linked to a different part of the W2 and is controlled by different field on the deduction definition itself.  These fields are settable on the Modify Deduction screen (Payroll→Setup→Deductions→Modify Deduction).

Top Left Panel

The panel on the top left of the Deduction Setup Validation screen is controlled by the “Type” field on the modify deduction screen.  There must be at least one entry on each line.  These will probably be setup as payroll cannot run without these settings.  If there is no deduction setup for one of these, the line will be empty.  Click on the deduction to verify its configuration.

The Type field on the Modify Deduction screen controls whether or not the deduction is picked up for one of these settings.

The Type field is never blank.   It is only picked up for one of the rows (i.e. fields) here when the Type selected matches one of the "Types" - E.g. System(Medicare).   The full set of available codes is found in the DEDUCTION_TYPE_CODES codes table on the Setup→Codes screen.

Top Right Top Panel

The panel on the top right top section of the Deduction Setup Validation screen is controlled by the "Type of Pension Deduction” field on the modify deduction screen.  There must be at least one entry on each line.  These will probably be setup as payroll cannot run without these settings.  If there is no deduction setup for one of these, the line will be empty.  Click on the deduction to verify its configuration.  Note that there can be multiple Deductions located/coded for each 'Type of Pension':

The “Type of Pension Deduction” controls whether a deduction is picked up and listed in this panel – and counted toward the appropriate pension on the W2.  This field should be blank if the deduction is not related to a pension.

Top Right Bottom Panel

The panel on the top right bottom section of the Deduction Setup Validation screen controls the totals that will appear in “Box 14” of the W2.  There are three deductions where the Code field must correspond to each line:

• FLI – Family Leave Insurance – This is required.
• SDI – State Disability Insurance – Many districts may legitimately not have this setup.
• SUI – State Unemployment Insurance – This is required.

The Code field of the Deduction must have the exact code specified here:  the Code field is the primary key for the Deduction and cannot be edited.   Note the specific codes (FLI, SDI, SUI).

Bottom Panel

The panel on the bottom left of the Validate Deduction Setup screen controls the information that will appear in various boxes of the W2 (box 10,12, or 14, as identified for each individual display option).   This item is controlled by the W2 Display Option field on the modify deduction screen.  If there is no deduction setup for one of these, the line will be empty.  Go to the screen and locate deductions corresponding to each line here and modify the deductions accordingly.

Each “Display Option” indicates both the IRS code (e.g. C E, G, J, W, BB, DD, or DC) as well as how the option is known within Genesis SchoolFi.  There can be multiple Deductions for any category.

NOTE:  Code DD is calculated by taking any deduction that has a W2 Display Option of DD, then it adds in any Other Reported W2 Record where box 12 option is set to DD.  HOWEVER, there is an option on the Payroll -> W2 -> EF2 File -> EFW2 File screen: "Do not include DD from payroll. Only use the Staff Other W2 Earnings value."