Accounting, Payroll & Pension Issues/Payroll W-2

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Expert: - 1/6/2009


Question
Our company paid for an airline ticket for personal use for an employee.  I need to have this amount reflected on his w-2.  I know that the federal taxes should be paid.  But I need a payroll calculation to offset the net amount and to show up on the w-2.  Is there a specific w-2 code that this calculation should have?  If I don't have an offset calculation it gives a net check.  I will also have to offset the expense account it went to when we paid the airline.   I appreciate your help with this.

Thanks
Robin


Answer
If you do not collect the taxes from his payroll check than they are not reflected on the W-2. The amount is added to his W-2 but no taxes are added since none were collected. If the company wishes to pay the taxes you have to gross up the amount of the airline ticket for the taxes.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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