Add state tax to an employee's W-2

Use the Add State Taxes feature to enter state taxes that must be reported on the employee's W-2, but that weren't withheld from the employee's paychecks.

1. Select Employee W-2 Information from the Payroll menu, and the window opens.

2. Click in the Employee Name field, and select the employee from the drop-down list.

3. Click in the Calendar Year field, and select the calendar year for the W-2 information. The W-2 information is then displayed.

4. Click the Add State Taxes button, and the Add State Taxes dialog opens.

5. Complete the fields as described below. All fields are required to save the record.

   • State Code: Select the two-letter state code from the drop-down.

   • State Wages: Enter the amount of the employee's wages that are subject to state tax. This amount will be reported in box 18 of the W-2.

   • State Taxes: Enter the amount of state tax to be reported on the W-2. This amount will be reported in box 19 of the W-2.

   • Comment: Optional.

6. Click the Save button.

Return to Employee W-2 Information Overview

Return to W-2 Process Overview