On July 28, we received the following alert from the UCPath Center.

This is a reporting error only and does not affect taxable income or taxes withheld.

Summer Salary DC Plan W-2 Corrections

We want to inform you of a reporting issue affecting Summer Salary Defined Contribution (DC) Plan 403(b) contributions on employee Form W-2. 

Issue Summary

UC mistakenly reported Summer Salary DC Plan contributions in Box 14 under code DCP. The correct IRS reporting requirement for 403(b) plan contributions is Box 12 with code E. This is only a W-2 pension plan reporting box issue and does not impact employee taxable income or taxes withheld.

Based on UC Tax Advisor guidance, we will take corrective action for the years open to federal income tax return filing, including 2022, 2023 and 2024 (with 21,605 employees impacted) according to federal income tax correction time limits. 

Corrective Action

UCPath is updating the system mapping to ensure contributions report correctly in Box 12 of Form W-2 going forward. 

In addition, UCPath will issue a corrected Form W-2 (W-2c) for each impacted employee for the years 2022, 2023 and 2024 to ensure proper IRS reporting. These corrections are necessary to support employee tax compliance, particularly for those who may have contributed to multiple retirement plans in the same tax year. This correction will not impact taxable wages, or the taxes withheld.   

What to Expect

• UCPath Stakeholder Engagement Managers will provide each location with a list of their impacted employees
• UCPath will send a Targeted Mass Email (TME) to affected employees informing them of the issue and the corrective action once the W-2c processes   
• Employee questions should be directed to UCPath

 We appreciate your partnership as we work to resolve this issue and ensure accurate reporting.