Box 12, Code II not an option

We need to manually set up the additional payroll item for the affected box in your company file, PayrollFun.

To accurately reflect your Medicare Waiver Wages in box 12, you need to create a payroll item and select the appropriate tax tracking type. While doing this, we recommend consulting with your accountant for guidance in choosing the correct tax tracking type.

Here's how:

1. Go to the Lists menu, then click the Payroll Item List option.
2. Click New from the Payroll Item dropdown below.
3. Choose Custom Setup, then click Next.
4. In the Payroll item type window, choose the payroll item you want to create, then click Next.
5. Enter the item name for your company contribution, then select Next.
6. Select the agency for company-paid liability, fill out the other fields, and click Next.
7. Select the appropriate Tax Tracking Type, then click Next.
8. Follow the on-screen process until you see the Finish button.

Additionally, please refer to this article if you or your employee finds a mistake on their W-2 or your W-3: Fix an incorrect W-2 and W-3.

Please let me know if you need further assistance as you create your payroll item, PayrollFun. I'll be around to back you up.