NJ FLI reported in Box 15 and causing state taxable wages to be doubled

[HFINANCIAL]

I have a client that has a W2 with the NJ FLI reported in Box 15 (under NJ state wages). The wages for FLI are blank but Proseries will not allow a value lower than the state wages.  Adding state wages, doubles on the state return.  I reached out to Paychex (who provided the W2 for the ER and they stated the response below.  Can anyone assist with this or should I just enter the FLI in Box 14? Will that cause a mismatch with the IRS filing by Paychex?

Paychex Response:

So further researching, and I did read on the NJ site as well that the FLI for New Jersey withholding can be reported in Box 17 and the state agency does state "This amount should not be added to your New Jersey Income Tax withholding or reported on the New Jersey withholding line of Form NJ-1040".

I believe there was an error on their end when trying to file the taxes, they combined the State Income tax with the FLI. I don't see any error. I have also included the state agency website that I utilized as well below.

https://www.state.nj.us/treasury/taxation/notice-common.shtml#:~:text=Your%20employer%20may%20report...

[Accountant-Man · Accepted solution]

It goes in box 14 with NJ unemployment and NJ Disability tax, not 15. NJ FLI is on the drop down list of other taxes, Box 14.

[HFINANCIAL]

Hi,

I agree with you Champion. lol.  However Paychex is stating something different and I wanted to make Intuit aware of this as well.   I was wondering if reporting in box 14, when W2 has in Box 15 - would cause any issue for my client?  But we will see.

Paychex REP:  "Our database goes off the compliance (regulations) and guidance form the agencies (Federal, State and SSA). Since the state allows this information in the appropriate box, there is no printing/reporting error. I can try my best to determine who and where to send this and see if possibly I can get any feedback however, this may take some time. Please let me know if you need any further assistance."

Deanna Dillingham - Service Representative - SMB Service - Office: (888) 749-5042 ext. 5100214

paychex.com

[Accountant-Man]

The payroll software I use, CFS, reports UI and DI in box 14 and reports FLI in the State income tax box, calling it -FLI, and does NOT report any wages in the same line's box 16.

[McCool]

My W2 is from PayChex too and I am filing Federal and NJ state tax using  TurboTax Premier.  I wanted clarify your comments regarding FLI being reported in Box 15 and 17. So I should report FLI in TT using box 14  though PayChex W2 shows it in Box 15 and 17, correct?