Form W-3ss - Transmittal Of Wage And Tax Statements

Include in the address the number, street, apartment or suite number

Note. Do not report special wage payments, such as accumulated sick

(or P.O. box number if mail is not delivered to a street address).

or vacation pay, in box 11. For more information or reporting special

wage payments, see Pub. 957, Reporting Back Pay and Special Wage

Third-party payers of sick pay filing third-party sick pay recap Forms

Payments to the Social Security Administration.

W-2AS, W-2GU, W-2CM, or W-2VI must enter “Third-Party Sick Pay

Recap” in place of the employee’s name in box e. See Sick Pay

Box 12—Codes. Complete and code this box for all items described

Reporting in Pub. 15-A.

below. On Copy A, do not enter more than four items in box 12. If

more than four items need to be reported in box 12, use a separate

Box 1—Wages, tips, other compensation. Show, before any payroll

Form W-2AS, W-2GU, or W-2VI for additional items. You may enter

deductions, the total wages, tips, and other compensation such as:

more than four items on all other copies when using an approved

(a) wages, bonuses, prizes, and awards, (b) noncash payments,

substitute form.

including certain fringe benefits, (c) tips reported, (d) taxable cost of

Show the IRS code (using a capital letter or letters) to the left of

group-term life insurance over $50,000, (e) distributions from a

the vertical line in boxes 12a–d and the money amount to the right

nonqualified or nongovernmental section 457(b) plan, and (f) cost of

of the vertical line using decimal points but no dollar signs or

current insurance protection under a compensatory split-dollar life

commas, (for example, D 5300.00).

insurance arrangement. Other compensation is amounts you pay the

Code A—Uncollected social security tax on tips. Show the

employee from which income tax is not withheld. You may show other

employee social security tax on tips that you could not collect because

compensation on a separate Form W-2AS, W-2GU, or W-2VI.

the employee did not have enough funds from which to deduct it. Do

Note. Show payments to statutory employees that are subject to social

not include this amount in box 4.

security and Medicare taxes but not subject to income tax withholding

in box 1 as other compensation. See Pub. 80 (Circular SS), Federal Tax

Code B—Uncollected Medicare tax on tips. Show the employee

Guide for Employers in the U.S. Virgin Islands, Guam, American

Medicare tax on tips that you could not collect because the employee

did not have enough funds from which to deduct it. Do not include this

Samoa, and the Commonwealth of the Northern Mariana Islands, for

amount in box 6.

the definition of a statutory employee.

Code C—Taxable cost of group-term life insurance over $50,000.

Box 2—Income tax withheld. Show the total American Samoa, Guam,

Show the taxable cost of group-term life insurance coverage over

or U.S. Virgin Islands income tax withheld. Do not reduce this amount

$50,000 provided to your employee (including a former employee). Also

by any advance EIC payments.

include this amount in boxes 1, 3 (up to the social security wage base),

Box 3—Social security wages. Show the total wages paid (before

and 5.

payroll deductions) subject to employee social security tax. Do not

Codes D through H, S, Y, AA, and BB. Use these codes to show

include tips. The total of boxes 3 and 7 cannot be more than $94,200

pre-tax elective deferrals and designated Roth contributions made to

(2006 maximum social security wage base). Generally, noncash

the plans listed. Do not report amounts for other types of plans. The

payments are considered wages. See Pub. 80 (Circular SS) for more

Example following Code D shows how to report elective deferrals to a

information.

section 401(k) plan.

Box 4—Social security tax withheld. Show the total employee social

Report as elective deferrals and designated Roth contributions only

security tax (not your share) withheld or paid by you for the employee,

the part of the employee’s salary (or other compensation) that he or

including social security tax on tips. Include only tax withheld (or paid

she did not receive because of the deferrals or designated Roth

by you for the employee) for 2006 wages and tips. The amount shown

contributions. For section 457(b) plans, report both elective and

should not exceed $5,840.40 ($94,200

6.2%).

nonelective deferrals using code G.

Box 5—Medicare wages and tips. Show the total wages paid and

For employees who were 50 years of age or older at any time during

tips reported subject to employee Medicare tax. There is no wage base

the year and made elective deferral and/or designated Roth "catch-up"

limit for Medicare tax.

contributions, report the elective deferrals and the elective deferral

"catch-up" contributions as a single sum in box 12 using the

Box 6—Medicare tax withheld. Show the total employee Medicare tax

appropriate code, and the designated Roth contributions and the

(not your share) withheld or paid by you for the employee. Include only

designated Roth “catch-up” contributions as a single sum in box 12

tax withheld for 2006 wages and tips. The rate is 1.45% of all wages

using the appropriate code.

and tips.

The following are not elective deferrals and may be reported in

Box 7—Social security tips. Show the tips that the employee reported

box 14, but not in box 12: (a) nonelective employer contributions on

to you even if you did not have enough employee funds to collect the

social security tax for the tips. The total of boxes 3 and 7 should not

behalf of an employee; (b) after-tax contributions that are not

be more than $94,200 (for 2006). Report all tips in box 1 along with

designated Roth contributions, such as voluntary contributions to a

wages and other compensation.

pension plan that are deducted from an employee’s pay; and (c)

required employee and employer matching contributions. See the

Box 9—Advance EIC payment. (Forms W-2GU and W-2VI only.) Show

instructions below in Codes AA and BB for reporting designated Roth

the total advance earned income credit (EIC) paid to the employee.

contributions.

Box 11—Nonqualified plans. The purpose of box 11 is for the SSA to

Code D—Elective deferrals to a section 401(k) cash or deferred

determine if any part of the amount reported in box 1 or boxes 3

arrangement (plan). Also show deferrals under a SIMPLE retirement

and/or 5 was earned in a prior year. The SSA uses this information to

account that is part of a section 401(k) arrangement.

verify that they have properly applied the social security earnings test

Example of reporting elective deferrals and designated Roth

and paid the correct amount of benefits.

contributions to a section 401(k) plan. For 2006, Employee A (age

Show distributions to an employee from a nonqualified or

45) elected to defer $15,500 to a section 401(k) plan, made a

nongovernmental section 457(b) plan. Also report the distributions in

designated Roth contribution of $1,000 to the plan, and made a

box 1. Make only one entry in this box. Distributions from governmental

voluntary (non-Roth) after-tax contribution of $600. In addition, the

section 457(b) plans must be reported on Form 1099-R, not in box 1 of

employer, on A’s behalf, made a qualified nonelective contribution of

Forms W-2AS, W-2GU, or W-2VI.

$2,000 to the plan and a nonelective profit-sharing employer

If you did not make distributions this year, show deferrals (plus

contribution of $3,000.

earnings) under a nonqualified or any section 457(b) plan that

The total elective deferral of $15,500 is reported in box 12 with code

became taxable for social security and Medicare taxes during the

D (D 15500.00), and the designated Roth contribution is reported in

year (but were for prior year services) because the deferred amounts

box 12 with code AA (AA 1000.00). Even though the 2006 limit for

were no longer subject to a substantial risk of forfeiture. Also report

elective deferrals and designated Roth contributions is $15,000, the

these amounts in boxes 3 (up to the social security wage base) and 5.

employer must separately report the actual amounts of $15,500 and

Do not report in box 11 deferrals that are included in boxes 3

$1,000 in box 12. The return of excess salary deferrals and excess

and/or 5 and that are for current year services (such as, those that

designated Roth contributions, including earnings on both, is reported

have no risk of forfeiture).

on Form 1099-R.

Caution. If you made distributions and you are also reporting any

The $600 voluntary after-tax contribution may be reported in box 14

deferrals in boxes 3 and/or 5, do not complete box 11. See Pub. 957,

(this is optional) but not in box 12. The $2,000 nonelective contribution

Reporting Back Pay and Special Wage Payments to the Social Security

and the $3,000 nonelective profit-sharing employer contribution are

Administration, and Form SSA-131, Employer Report of Special Wage

not required to be reported on Form W-2AS, W-2GU, or W-2VI, but

Payments, for special reporting instructions for these and other kinds

may be reported in box 14.

of compensation earned in prior years. However, do not file Form

SSA-131 if this situation applies but the employee will not be age 62 or

Check the “Retirement plan” box in box 13.

Page 5

older by the end of that year.

Form W-3ss - Transmittal Of Wage And Tax Statements - 2006 Page 5

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