Additional income from a PTO payout

[daniellelynn17]

I forgot to enter this from which is not a W2 so I will amend this return, but I can't figure out where to enter this information on turbotax. Again it is not a W2 but a paystub of Paid time off that was paid out when I left the job and the taxes on it.

[IsabellaG · Accepted solution]

Are you sure that this was not already part of your W-2? Paid Time Off from your former employer should have been reported on your final W-2. If not, you should ask your employer for a corrected W-2 to reflect this income.

[Tracy Weeks]

Hello,

I'm trying to figure out where to place my employee's PTO and fuel expenses on their W2s.  Should I manually enter these amounts into Line 1 or place them with a note under Line 14 Other?  My employees will obviously ask me how to report this on their tax forms, so I want to be clear before I do this.

Thank you!

Tracy

[KarenM90]

Payments of PTO to employees are generally considered regular wages and would be included with taxable wages in box 1 of the W2.  Taxes would be calculated the same as if the PTO amounts were regular wages.

Regarding fuel expenses paid to your employees, it depends under what type of plan or agreement you pay these to your employees;

   1.  If your employees submit their mileage to you and you reimburse them for the entire approved expense, there really is no need to report those amount on the W2.  They are not taxable income to your employees.  Please note, however,  you can use box 14 to report any auto reimbursements or general information regarding wages, if you prefer.

   2.  If you pay your employees a set amount per month or don't require them to account for their mileage, then any amount you pay them would be considered taxable wages and should be included in box 1.

The IRS regulations on accountable and non accountable plans are quite extensive, but here is a link that has a good summary of the general rules: Accountable vs Non Accountable Auto Reimbursement Plans

Also, please note, you can use box 14 to report any auto reimbursements or general information regarding wages, if you prefer.