If your company is set up with Qualified Pension and if you have some employees without year-to-date wages and have the Qualified Pension indicator marked as “Yes”; then those employees will receive a blank Form W-2, with the Retirement plan box checked.
Box 13 on Form W-2
The Retirement plan indicator populates Box 13 on Form W-2 and shows whether an employee is an active participant in your company's plan.
Please keep in mind that:
· An “X” in Box 13 indicates an employee is an active participant and is automatically displayed for anyone who has deferred compensation within the current year.
· Your employees’ Qualified Pension status is displayed on the Personnel section of the Master Control and should be reviewed for accuracy.
Note: Any employee coded with Qualified Pension for 2021, even without wages, will receive a Form W-2 with an “X” in the Retirement plan box, and the information will be reported to the IRS.
For additional retirement plan information, please visit the IRS website at https://www.irs.gov/retirement-plans/common-errors-on-form-w2-codes-for-retirement-plans.
Incorrect Forms W-2
If an employee’s Form W-2 is not correct because it has the Retirement plan box marked, an amendment may be required. This may affect your employees if they have already filed their income tax returns. Please carefully audit your Qualified Pension coding to ensure the information in Box 13 on Forms W-2 is accurate.
Submitting Changes in ADP Workforce Now®:
If you have employees without earnings and do not want them to receive a blank Form W-2 with only the retirement plan box checked, access ADP Workforce Now and:
1. Click Process > Payroll > Payroll Cycle > Year-End Dashboard > Employee Tax Forms.
2. In the Avoid unnecessary W-2s for employees section, click the Review button.
3. Uncheck the checkbox located next to the heading, Send Blank W-2s.
4. Click Save and Exit.
5. Review your entry and click Continue.
Archived File Numbers
If a file number is archived, you must unarchive the employee, update the employee level coding, and process the payroll with the employee update before archiving the file number again.
For more detailed information on any of the topics above, you can select the individual titles to go to a more detailed communication. Or you may access various resources & knowledge articles in ADP Workforce Now by going to the Service Portal. Click on Need Help > Contact ADP Support > in the search bar, type any key word or after opening the Service Portal window you may click on the following knowledge articles:
· Comprehensive Services Quarter & Year End Library
· What’s in the Box? – W-2 Boxes Explained
· Viewing or Unarchiving Archived Employees
If you have any questions, we’re here to help you.