How To Read And Understand Your Form W

W2 Box Descriptions

Replacement W-2’s will not be printed until early March. Used another software application for part of the year and want to add prior employer contributions to the W-2’s. handles employer pension contributions on pre-tax plans.

If the entry that is printed on your W-2 IS NOT included in the list, you may select «Other » for the Code for your Box 14 entry. If the item is not specifically included in the list on the drop-down menu for W2 Box Descriptions Box 14, the IRS has not provided a place or specific instructions for reporting it. Locality name will print based on the 4 digit Tax Service Local Code associated with the employee’s Payroll City Code.

  • US Mastercard Zero Liability does not apply to commercial accounts .
  • They’re not necessarily the same as those that appear on the 2017, 2018, and 2019 returns because the IRS hasredesigned the form several times since 2017.
  • Add the boxes together if you’re married and filing a joint return and both you and your spouse have W-2s.
  • Box 20 provides a brief description of the local, city or other state tax being paid.
  • The system automatically creates separate W-2 forms for third-party sick pay, and updates the third-party sick pay option for each employee who has records with the history type 1 in the F06136 table.
  • You also use Box 13 to specify whether an employee is an active member in a retirement savings plan, or whether the employee received third-party sick pay during the tax-reporting year.

For information about the annual wage base, please visit the Social Security Administration website. You can also ask your employer to correct any wrong information on your Form W-2.

Form W-2, also known as the Wage and Tax Statement, is the document an employer is required to send to each employee and the Internal Revenue Service at the end of the year. A W-2 reports employees’ annual wages and the amount of taxes withheld from their paychecks. A W-2 employee is someone whose employer deducts taxes from their paychecks and submits this information to the government. Code P — Moving expenses that were reimbursed by IU to an employee for expenses that were considered deductible moving expenses. These amounts are not reported in Boxes 1, 3, or 5. The IRS requires this information so they can compare the reimbursed amount with the individual income tax return where the individual might also be claiming a deduction for moving expenses. Code B — Uncollected Medicare tax on tips — the employer is not required to pay the employee portion of Medicare taxes that could not be withheld on a reported tip amount.

Box 15

Reflects the amount of actual local income tax withheld on your paychecks during the year. If you believe the figure on your W-2 form is incorrect, please refer to your pay advices where it reflects the amount withheld from each check and the year-to-date figure. If you submitted a WH-4 indicating you were not in Indiana as of January 1, your wages will not be subject to Indiana local income tax. Please review your pay advice using the Employee Center task tile in One.IU to view the locality for which your wages are being accumulated.

For example, you may allow employees to contribute to a 401k or ROTH IRA. As a Description, you may enter Retirement Contr and use this code for all deductions that are retirement contributions. The lease value of a vehicle provided to your employee and reported in box 1 must be reported here or on a separate statement to your employee. When you set up a pay, tax, deduction, or fringe, you can select to print the year-to-date amount for it in one of the following boxes on Form W-2. If applicable, you can also select not to report the information on Form W-2.

Reports your total taxable wages or salary for federal income tax purposes. This figure includes your wages, salary, tips reported, bonuses and other taxable compensation. Any taxable fringe benefits are also included in your Box 1 wages. Box 1 does not include any pre-tax benefits such as savings contributions to a 401 plan, 403 plan, health insurance, or other types of pre-tax benefits. Total wages paid subject to employee social security tax to a maximum of $76,200 . Includes taxable employee business expense payments reported in box 1, contributions to certain qualified cash or deferred compensation plans, and the value of fringe benefits. DOES NOT INCLUDE Allocated tips or Social Security tips .

W2 Box Descriptions

Type of federal return filed is based on your personal tax situation and IRS rules. Additional fees apply for Earned Income Credit and certain other additional forms, for state and local returns, and if you select other products and services. Visit to find the nearest participating office or to make an appointment. If the employee also works for tips, a field shows how much money in tips the employee earned for the year. This box reports any amounts that were distributed to you from your employer’s non-qualified deferred compensation plan or non-government Section 457 pension plan. The amount in Box 11 is already included as taxable wages in Box 1. Box 17 reports the total amount of state income taxes withheld from your paychecks for the wages reported in Box 16.

What Does Each Box Mean?

If you would like to include employer pension contributions on a post-tax plan, you can manually update the contributions on theEdit W-2 Informationwindow as discussed below. The State Controller’s Office does not provide W-2’s for IHSS employees. Please contact the social worker or the local IHSS personnel/payroll office of the county where you work or worked to request a duplicate W-2. Go online and search for the county IHSS personnel/payroll office you service to get their phone number. Enter 1, 2, or 3 to place this amount in the first, second, or third Box 14 position.

This amount is not included in the wages that are reported in Boxes 1, 3, 5, or 7. Box 3 shows your total wages subject to the Social Security tax. This figure is calculated before any payroll deductions which means that the amount in box 3 could be higher than the number reported in box 1, as in my example. It could also be less than the amount in box 1, if you’re a high-wage earner, since the total of boxes 3 and 7 cannot exceed the maximum Social Security wage base. If you have more than one job, for Social Security tax purposes, the cap still applies. Box 7 shows any tip income you reported to your employer.

If you are subject to local, city, or other state income taxes, those will be reported in box 18. If you have wages subject to withholding in more than two states or localities, your employer will furnish an additional form W-2. Amounts which are less than $5,000 and are paid under a qualified plan are considered non-taxable benefits. IMP — Imputed Income, which is the taxable value of the employer contribution for health benefits provided to a retiree’s domestic partner. This amount is included in Box 1 and must be reported for federal, state and local taxes.

W2 Box Descriptions

Code DD – Cost of Employer-Sponsored Health Coverage – the total amount paid by both the employer and employee for health coverage. Please note this is reported to the IRS for informational purposes only. The amount of earnings that were reported by an employee to the employer as tips received. Tips are usually paid to individuals working in the hotel and restaurant industry. Generally, the wages of individuals enrolled in courses for credit are considered to be exempt from Medicare tax. However, if the individual is working in a career type position , the exemption will not be allowed and Medicare taxes will be withheld. The eligibility verification occurs each time a paycheck is confirmed and does not require any action on the part of the employee/student in order for the exemption to occur.

6 Verifying Company Information

TaxSlayer Pro pulls this amount to Form 8880.FElective deferrals under a section 408 salary reduction SEP. TaxSlayer Pro pulls this amount to Form 8880.GElective deferrals and employer contributions to a section 457 deferred compensation plan. TaxSlayer Pro pulls this amount to Form 8880.HElective deferrals to a section 501 tax-exempt organization plan.

US Mastercard Zero Liability does not apply to commercial accounts . Conditions and exceptions apply – see your Cardholder bookkeeping Agreement for details about reporting lost or stolen cards and liability for unauthorized transactions.

Yes, employees who have contributed to the PST retirement plan will have the contributions reported in Box 12 with code “G”. However, employees who contributed to the ARP plan will not have the contributions reported on Form W-2. Box 13 is used to identify if an employee is in a pension plan. An “X” indicates employees are members of either the Public Employees’, State Teachers’, Judges’ or Legislators’ Retirement System. Employees in the Alternate Retirement Plan or Part-time/Seasonal/Temporary retirement plan will not have an “X” indicated. The W-2 Build will calculate the total subject to wages paid by employee by qualified leave type.

Box 8: Allocated Tips

If the value that you want to enter in the W-2 IRS Defined Code field is more than two characters, you can enter the value in this field. The payroll-tax calculation system by Vertex calculates all school district taxes.

W2 Box Descriptions

The W-2 is filled out by employers at the end of the tax year and sent to employees to input on their tax returns. Box 12 details other types of compensation or reductions from your taxable income and a single or double letter code that corresponds to each. It might include, for example, contributions to a 401 plan. W-2 forms include both numbered and lettered boxes that an employer must fill out and reflects how much you earned online bookkeeping and taxes withheld. Employers must also use W-2 forms to report Federal Insurance Contributions Act taxes for their employees throughout the year. By the end of January, employers must file, for the previous year, Form W-2, along with Form W-3, for each employee with the Social Security Administration . The SSA uses the information on these forms to calculate the Social Security benefits to which each worker is entitled.

Any earnings, supplemental salary, or imputed income would be reflected on a W‐2. Box 5 contains your total wages subject to Medicare taxes. In contrast to OASDI, there is no annual limit on wages subject to Medicare withholding.

(Your employee record is coded U for retirement and you are a member of the University of California Retirement Plan.) Plan title changed to UCRP in April 2010. Information on the Form W-2 statement will vary for each employee. The table below provides an explanation of the information that may be contained in each box on the Form W-2. You should have received your form W-2 — with all of this information properly reported — by January 31, 2018.

An ITIN is an identification number issued by the U.S. government for tax reporting only. Having an ITIN does not change your immigration status.

Author: Michael Cohn

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