W-2 Box 12 Reporting

[wms7328]

We are hiring a new minister and will be paying a housing allowance. I understand that a housing allowance is exempt from Federal and State income taxes but has to be included in social security and Medicare income (we deduct these as self employment taxes for minister). In completing the w-2, is the housing allowance reported in Box 12 and if so, under what code. Want to make sure I set up payroll correctly from the start. Thanks

[tborgal]

First question is. What version are you using? I will assume you are using Version 11.5. When you set up the Item Description in the middle of the window under Tax Options select <More Options> and there will be two check boxes to the right of that selection. Select Housing Allowance and the W2 will be filled in correctly. In 2014 it was Box 14. You should also select Medicare and Social Security if you have not already done so.

[wms7328]

Thanks, I am using version 11.5.