Revenue Procedure Form 2001-26 Forms W-2 And W-3 (Page 9 of 21) in pdf

not have Social security tips (box 7), Al-

is part of a section 401(k) arrangement, that

beled as to the disposition of the copies,

located tips (box 8), or Advance EIC pay-

amount must be reported in box 12, Form

then written notification must be pro-

ment (box 9), the form could be printed

W-2, using code D.

vided to each employee as specified

without those boxes. However, if the em-

18. Amounts paid or expenses incurred

below:

ployer provided amounts for (box 10) De-

on behalf of an employee for qualified

(a) The first copy of the form (Copy

pendent care benefits, those amounts

adoption expenses must be reported in

B) is filed with the employee’s Federal

would be required to be reported sepa-

box 12, Form W-2, using code T.

tax return.

rately and shown in a box labeled “De-

19. Code V (optional) for 2001, shows

(b) The second copy of the form

pendent care benefits” as on the IRS

the spread (i.e., fair market value of stock

(Copy C) is for the employee’s records.

printed form and the exhibits in this rev-

over the exercise price of option(s) granted

enue procedure.

to your employee with respect to that stock)

(Copy 2) of the form is filed with the

13. Employers may provide multiple

from your employee’s exercise of non-

employee’s state, city, or local income

entries in box 12, but each entry must use

statutory stock option(s). The spread is to

tax return.

the same code as assigned by the IRS for

be included in boxes 1, 3 (up to the social

3. If the substitute forms are labeled,

that type of item. (See the “Reference

security wage base), 5, and 12.

the forms must contain the applicable

Guide for Box 12 Codes” in the 2001 In-

20. Employers may use box 14 for any

description:

structions for Forms W-2 and W-3.) For

other information they wish to give their

“Copy B, To Be Filed With Em-

example, employers reporting elective de-

employee. Each item must be labeled.

ployee’s FEDERAL Tax Return,” and

ferrals to a section 401(k) plan must enter

Examples are union dues, health insur-

“Copy

for

EMPLOYEES

in box 12 “D” and not “A”, even though it

ance premiums deducted, nontaxable in-

RECORDS.” It is recommended (but not

is the first or only item to go in this box.

come, voluntary after-tax contributions,

required) that this be located on the

Use the codes shown with the dollar

or educational assistance payments.

lower left of Form W-2. “Copy 2, To Be

amount. Employers may enter more

21. If you are reporting prior year

Filed with Employee’s State, City, or

than four codes in box 12 of Copies 1, 2,

contributions under USERRA (see item

Local Income Tax Return”.

B, C, and D of Forms W-2. Do not re-

14 above), you may report in box 14

4. Instructions similar to those con-

port in box 12 any items that are not listed

makeup amounts for nonelective em-

tained on the back of Copies B and C of

as Codes A-T or the new Code “V” in

ployer contributions, voluntary after-tax

the official Form W-2 must be provided

the 2001 Instructions for Forms W-2.

contributions, required employee contri-

to each employee. Employers may

14. For codes D, E, F, G, H, and S, if

butions, and employer matching contri-

modify or delete certain information in

any elective deferrals, salary reduction

butions. Report such amounts sepa-

these instructions (such as modification

amounts, or non-elective contributions to

rately for each year.

for employees of railroads to cover Rail-

a section 457(b) plan during the year are

22. If the employer has employees

road Retirement Tier 1 and Tier 2 com-

make-up amounts under the Uniformed

who are subject to any of the three cate-

pensation and taxes). Employers are al-

Services Employment and Reemploy-

gories/check boxes within box 13, the

lowed to delete instructions that do not

ment Rights Act of 1994 (USERRA) for

entire box 13 (ballot boxes) is required

apply to the employee. For example, if

a prior year, you must enter the prior year

to be reported with the proper check

none of the employees have dependent

contributions separately. You must enter

mark designation. For example, if an

care benefits (box 10), the employer

the code, the year (two positions only),

employer provides a retirement plan,

may delete the instructions for that item.

and the amount. For example, elective

box 13 must be reported and check

Also, if an employer will only be report-

deferrals under USERRA to a section

marked for retirement plan designation.

ing amounts for a 401(k) plan in box 13,

401(k) plan are reported in box 12 as fol-

.05 Substitute forms for employees

those instructions may be modified to

lows: D 00 2250.00, D 99 1250.00. The

(Copies B, C, and 2 of Forms W-2) must

cover only Code D and its instructions.

2001 contribution does not require a year

also meet the following requirements:

5. Employers must notify employees

designation; enter it as D 7000.00.

1. All copies of Form W-2 must

who have no income tax withheld that

15. If you are a military employer and

clearly show the form number, the form

they may be able to claim a tax refund

provide your employee with basic hous-

title, and the tax year prominently dis-

because of the earned income credit

ing, subsistence allowances, and combat

played together in one area of the form.

(EIC). You will meet this notification

zone compensation, report the amount in

The title of Form W-2 is “Wage and Tax

requirement if you issue the official IRS

box 12, Form W-2, using code Q.

Statement.” It is recommended (but not

Form W-2 with the EIC notice on the

16. Employer contributions to an em-

required) that this be located on the bot-

back of the Copy B, or a substitute Form

ployee’s Medical Savings Accounts

tom left of Form W-2. The reference to

W-2 with the same statement. You may

(MSA), must be reported in box 12, Form

the “Department of the Treasury - Inter-

also meet the requirement by providing

W-2, using code R.

nal Revenue Service” must be on all

a substitute Form W-2 without the EIC

17. An employee elective contribution

copies of Form W-2 provided to the em-

notification by including Notice 797,

to a salary reduction SIMPLE retirement

ployee. It is recommended (but not re-

Possible Federal Tax Refund Due to the

account must be included in box 12, Form

quired) that this be located on the bot-

Earned Income Credit (EIC), or your

W-2, using code S. However, if the amount

tom right of Form W-2.

own statement that contains the same

is contributed to a SIMPLE retirement that

2. If the substitute forms are not la-

wording. You may change the font on

Revenue Procedure Form 2001-26 Forms W-2 And W-3 Page 9

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