W-2 Box 14 - CT Paid Leave Act Requirement

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steeple01
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W-2 Box 14 - CT Paid Leave Act Requirement

Post by steeple01 »

Connecticut requires us to withhold a percentage from employee wages for the CT Paid Leave act. They want this amount to be shown in box 14 of the W-2. We started this on 1/1/21 and have assigned the appropriate item numbers but the amount is showing in our CT Income tax and not in box 14. How do I fix this for 2021 deductions and going forward? Thanks.

NeilZ
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Re: W-2 Box 14

Post by NeilZ »

steeple01 wrote:
Tue Jan 18, 2022 4:18 pm
Connecticut requires us to withhold a percentage from employee wages for the CT Paid Leave act. They want this amount to be shown in box 14 of the W-2. We started this on 1/1/21 and have assigned the appropriate item numbers but the amount is showing in our CT Income tax and not in box 14. How do I fix this for 2021 deductions and going forward? Thanks.
I don't believe the program can account for this currently, for 2021 you may have to manually adjust the W2 and W3 and separate out the amounts. I'd give Powerchurch a call directly as they may not know about this requirement. Looking under the Connecticut tax setup its not even addressed, and that was updated in Nov 2021.
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Zorak
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Re: W-2 Box 14 - CT Paid Leave Act Requirement

Post by Zorak »

Since this should only be reported in Box 14, the deduction shouldn't be processed as a CT State Tax deduction.

On the Maintain Item Descriptions screen in Payroll > Setup, change the Tax Deduction item to an Other Deduction item by clicking the Options dropdown next to the Type field. Unfortunately, the Box 14 reporting requirement is becoming more and more common these days, where everyone wants everything to be reported in Box 14. There is a limited amount of space available.

The software doesn't currently have the ability to automatically report that deduction amount into Box 14. It will have to be manually entered on each employee's W2 preview on screen prior to generating the forms or filing.

We have this documented as a feature that needs to be implemented, allowing potentially every deduction item now to be reported in Box 14, but that is a big update and will be coming later rather than sooner.

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