FAQ 930: Budget--W-2 included in Budget Amount - How it works


How does the system analyze the data when we check the box W2 income included in the Budget.


1) Input Budget amount Or 2) Input Income Share

Checking the box labeled "W-2 Income Included in budget"

If you are using the W-2 amounts in addition to the K-1 towards actually funding this contribution and you grossed up the budget amount to include the "income and W-2", check the box "W-2 Income included in budget". The system will then use the entire input budget amount towards the contribution calculation and it will also take the W-2 amount into consideration when making the necessary SEI tax adjustments and offset the "prepaid W2 ERpayroll taxes". Be sure to also post the Individual's W-2 amount to the W-2 field as well.


W-2 Income NOT Included in budget amount (leave unchecked)

If the W-2 amounts are being entered to be considered for SEI taxes only (ie. you do not want to include this amount as COMP towards the contribution allocations), don't check the box and use the K-1 only in the SPINCOME field. Be sure to enter the W2 amounts into the W2 field on the SOLEPROP screen or using the Budget Grid.