The W2 Type selected for an individual on the employee Master record defines (1) employee taxation or non-taxation and (2) W-2 or 1099-MISC reporting at year-end.
Active codes on the W2 Employee Type Codes Table provide the selections for the W2 Type field on the Master record.
A W-2 type for "Employee W2 Filing Form" defines who is an employee for tax purposes, and a W-2 Type code for "Employee 1099-MISC Filing Form" defines the non-taxation of an independent contractor. Both are considered "employees" for system purposes but not for tax purposes.
CAUTION: Where the Employee 1099-MISC Filing Form option is selected for an individual, payroll does not generate tax records for that individual, due to the designation as an independent contractor.
The W2 Employee Types table is unavailable through standard validation table maintenance in most implementations.
WARNING! Do not add, edit, deactivate, or delete codes on the W2 Employee Type Codes Table unless the change is required to meet regulatory guidelines.