Other Earning Pay Codes

In most cases, these pay codes are used for special reporting.

Code Name	Description	Additional Information	FIT Taxable	FICA Taxable	W-2 box
1099	Earnings for independent contractors This item is for SuitePeople U.S. Payroll only.	All pay for independent contractors should go into this code. Earnings will be reported on Form 1099-NEC box 7.			Form 1099-NEC, box 7
Advances -Loans	Code for any advance where repayment is expected	These amounts are not included as income for tax-reporting purposes. It is anticipated that they will be paid back to the employer.	—	—	—
Golden Parachute In Excess Of the Limit	Payment to a key executive when terminated due to a change of ownership	Golden Parachute payments in excess of the federal limit are subject to an additional excise tax. The amount withheld must be reflected in both W-2 box 2 -Federal Income tax withheld and in box 12 Code K.	Y	Y	box 12 Code K
Tips Paid by Employer	Allocated tips paid by employer	In most cases, this code is used by large food and beverage employers who are required to allocate a certain percentage of tips to employees. This appears in box 8 on W-2s. You will find more details available at https://www.irs.gov/pub/irs-pdf/p531.pdf.	N	N	box 8
Tips		Adds to earnings and is fully taxable. An automatic deduction ensures that the employee is not paid for this amount.			box 7
Moving Expenses -Qualified Reimbursement	Qualified moving expenses paid to employees on their paychecks This code is used when expenses for an employee's relocation are paid out-of-pocket by the employee and the employer reimburses the amount. The check should NOT include an offsetting deduction so this amount does increase check's net payment.	Outcome is to increase net pay. This pay code is fully taxable and reportable	Y	Y	Box 12, Code P is no longer supported for this pay code Box 1, 3 and 5
Non-Taxable Reimbursement	Code to use when reimbursing expenses on paychecks	Expenses should be business related and substantiated as per federal rules. This code does not effect earnings or taxes.	—	—	—
NQDC Distributions	Non-Qualified Deferred Compensation contributions are payments that are made to the employee for work done or services performed in the past. They are reported on Form W-2, Box 11, but are also included as taxable wages in Box 1.				box 11

Code Name

Description

Additional Information

FIT Taxable

FICA Taxable

W-2 box

1099

Earnings for independent contractors

This item is for SuitePeople U.S. Payroll only.

All pay for independent contractors should go into this code. Earnings will be reported on Form 1099-NEC box 7.

Form 1099-NEC, box 7

Advances -Loans

Code for any advance where repayment is expected

These amounts are not included as income for tax-reporting purposes. It is anticipated that they will be paid back to the employer.

—

Golden Parachute In Excess Of the Limit

Payment to a key executive when terminated due to a change of ownership

Golden Parachute payments in excess of the federal limit are subject to an additional excise tax. The amount withheld must be reflected in both W-2 box 2 -Federal Income tax withheld and in box 12 Code K.

box 12 Code K

Tips Paid by Employer

Allocated tips paid by employer

In most cases, this code is used by large food and beverage employers who are required to allocate a certain percentage of tips to employees. This appears in box 8 on W-2s.

You will find more details available at https://www.irs.gov/pub/irs-pdf/p531.pdf.

box 8

Tips

Adds to earnings and is fully taxable. An automatic deduction ensures that the employee is not paid for this amount.

box 7

Moving Expenses -Qualified Reimbursement

Qualified moving expenses paid to employees on their paychecks

This code is used when expenses for an employee's relocation are paid out-of-pocket by the employee and the employer reimburses the amount. The check should NOT include an offsetting deduction so this amount does increase check's net payment.

Outcome is to increase net pay. This pay code is fully taxable and reportable

Box 12, Code P is no longer supported for this pay code

Box 1, 3 and 5

Non-Taxable Reimbursement

Code to use when reimbursing expenses on paychecks

Expenses should be business related and substantiated as per federal rules. This code does not effect earnings or taxes.

—

NQDC Distributions

Non-Qualified Deferred Compensation contributions are payments that are made to the employee for work done or services performed in the past. They are reported on Form W-2, Box 11, but are also included as taxable wages in Box 1.

box 11

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