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Cathy, I can't say about 2012 but I know that the 2011 program computed the correct wages for SS and medicare if you had the W-2 set to calculate automatically, once you input the adjusting item with its correct code. For example, if you put $10,000 in box 1 for wages, and then entered $2,000 in box 12 with code D, the program calculates the box 3 and 5 amounts as $12,000 and computes the amount that should have been withheld based on the adjusted numbers. I agree about the state i d numbers though. And I wish that if you enter the employer identification number and it matches a payer in the payer manager that it would populate that information automatically.