metsfan026 Posted September 23 Share Posted September 23 We've always used Box 5 for the compensation when a document defines it as W2 Compensation. We have an auditor questioning it, wanting us to use the Gross Pay (which isn't a box on the W2). Which one is commonly used? Link to comment Share on other sites More sharing options...
RatherBeGolfing Posted September 23 Share Posted September 23 21 minutes ago, metsfan026 said: We've always used Box 5 for the compensation when a document defines it as W2 Compensation. We have an auditor questioning it, wanting us to use the Gross Pay (which isn't a box on the W2). Which one is commonly used? RTFD. I'm sure the document says more than just W-2 comp. All document provisions regarding comp matter, not just W-2, 415, etc. Link to comment Share on other sites More sharing options...
metsfan026 Posted September 23 Author Share Posted September 23 3 minutes ago, RatherBeGolfing said: RTFD. I'm sure the document says more than just W-2 comp. All document provisions regarding comp matter, not just W-2, 415, etc. This is the checkoff for the Plan: Link to comment Share on other sites More sharing options...
C. B. Zeller Posted September 23 Share Posted September 23 In order to be a safe harbor definition of comp, it has to include 125 deferrals as well as 401(k) deferrals. Box 5 is grossed up for 401(k) deferrals but not for 125 deferrals. RatherBeGolfing and Belgarath 2 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
RatherBeGolfing Posted September 23 Share Posted September 23 35 minutes ago, metsfan026 said: This is the checkoff for the Plan: So no other adjustments in the AA or BPD? What is the difference between W-2 + elective deferrals? I bet its 125 pre-tax deductions... Link to comment Share on other sites More sharing options...
Bill Presson Posted September 23 Share Posted September 23 The actual definition will be in the basic plan document. CuseFan 1 William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070 Link to comment Share on other sites More sharing options...
Gilmore Posted September 23 Share Posted September 23 The Erisa Outline Book always had a great Compensation Comparison Chart that should all of the pay elements included and excluded from the different compensation definitions. That's always my go to, at least for a starting point. Bill Presson 1 Link to comment Share on other sites More sharing options...
Ilene Ferenczy Posted September 24 Share Posted September 24 I also recommend reading the document (ALWAYS ABOUT EVERYTHING!) and the ERISA Outline Book. Note that there are things that appear in a W-2 that are never includible in compensation, such as true severance pay. So, you really need to take a look at what the document says should be included, plus any Code references in the document, and then compare that to the chart in the EOB, and that will likely get you to where you need to be in using the proper compensation. Link to comment Share on other sites More sharing options...
RatherBeGolfing Posted September 24 Share Posted September 24 51 minutes ago, Ilene Ferenczy said: Note that there are things that appear in a W-2 that are never includible in compensation, such as true severance pay. Great point Ilene! Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now