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could not. Do not send undeliverable Forms W-2 to the

more than $3,075.60 in Tier II RRTA tax withheld), he or she

SSA.

should claim the excess on the appropriate line of

Form 1040 or Form 1040A.

Taxpayer identification numbers (TINs). Employers use

an employer identification number (EIN) (00-0000000).

Archer MSA. An employer’s contribution to an employee’s

Employees use a social security number (SSN)

Archer MSA is not subject to income tax withholding, or

(000-00-0000). When you list a number, please separate the

social security, Medicare, or railroad retirement taxes if it is

nine digits properly to show the kind of number. Do not

reasonable to believe at the time of the payment that the

accept an individual taxpayer identification number (ITIN) for

contribution will be excludable from the employee’s income.

employment purposes. For more information, see section 4

However, if it is not reasonable to believe at the time of

of Pub. 15 (Circular E).

payment that the contribution will be excludable from the

employee’s income, employer contributions are subject to

The IRS uses SSNs to check the payments that you

income tax withholding and social security and Medicare

report against the amounts shown on the employees’ tax

taxes (or railroad retirement taxes, if applicable) and must

returns. The SSA uses SSNs to record employees’ earnings

be reported in boxes 1, 3, and 5.

for future social security and Medicare benefits. When you

prepare Form W-2, be sure to show the correct SSN for

You must report all employer contributions to an Archer

each employee. For information on verification of SSNs,

MSA in box 12 of Form W-2 with code R. Employer

see section 4 of Pub. 15 (Circular E).

contributions to an Archer MSA that are not excludable from

the income of the employee also must be reported in box 1.

Special Reporting Situations for

An employee’s contributions to an Archer MSA are

includible in income as wages and are subject to income tax

Form W-2

withholding and social security and Medicare taxes (or

Adoption benefits. Amounts paid or expenses incurred by

railroad retirement taxes, if applicable). Employee

an employer for qualified adoption expenses under an

contributions are deductible, within limits, on the employee’s

adoption assistance program are not subject to income tax

Form 1040.

withholding and are not reportable in box 1. However, these

See Notice 96-53, 1996-2 C.B. 219 and Pub. 969, Health

amounts (including adoption benefits paid from a section

Savings Accounts and Other Tax-Favored Health Plans, for

125 (cafeteria) plan, but not including adoption benefits

more information. You can find Notice 96-53 on page 5 of

forfeited from a cafeteria plan) are subject to social security,

Internal Revenue Bulletin 1996-51 at

Medicare, and railroad retirement taxes and must be

irs-irbs/irb96-51.pdf.

reported in boxes 3 and 5. Also, the total amount must be

Clergy and religious workers. For certain members of the

reported in box 12 with code T.

clergy and religious workers who are not subject to social

See Notice 97-9, 1997-1 C.B. 365, for more information

security and Medicare taxes as employees, boxes 3 and 5

on adoption benefits. You can find Notice 97-9 on page 35

of Form W-2 should be left blank. You may include a

of Internal Revenue Bulletin 1997-2 at

minister’s parsonage and/or utilities allowance in box 14. For

irs-irbs/irb97-02.pdf. Advise your employees to get Pub.

information on the rules that apply to ministers and certain

968, Tax Benefits for Adoption.

other religious workers, see Pub. 517, Social Security and

Agent reporting. Generally, an agent who has an

Other Information for Members of the Clergy and Religious

approved Form 2678, Employer Appointment of Agent,

Workers, and Section 4 – Religious Exemptions in

should enter the agent’s name as the employer in box c of

Pub. 15-A.

Form W-2, and file only one Form W-2 for each employee.

Corrections. Use the current version of Form W-2c,

However, if the agent (a) is acting as an agent for two or

Corrected Wage and Tax Statement, to correct errors (such

more employers or is an employer and is acting as an agent

as incorrect name, SSN, or amount) on a previously filed

for another employer and (b) pays social security wages for

Form W-2.

more than one employer in excess of the wage base to an

If the SSA issues your employee a replacement card

individual, special reporting for payments to that employee is

after a name change, or a new card with a different social

needed.

security number after a change in alien work status, file a

If both (a) and (b) above apply, the agent must file

Form W-2c to correct the name/SSN reported on the most

separate Forms W-2 for the affected employee reflecting the

recently filed Form W-2. It is not necessary to correct the

wages paid by each employer. On each Form W-2, the

prior years if the previous name and number were used for

agent should enter the following in box c of Form W-2:

the years prior to the most recently filed Form W-2.

(Name of agent)

File Form W-3c, Transmittal of Corrected Wage and Tax

Agent for (name of employer)

Statements, whenever you file a Form W-2c with the SSA,

Address of agent

even if you are only filing a Form W-2c to correct an

employee’s name or SSN. However, see Incorrect address

Each Form W-2 should reflect the EIN of the agent in

on employee’s Form W-2 on page 5 for information on

box b. An agent files one Form W-3 for all of the Forms W-2

correcting an employee’s address. See the Instructions for

and enters its own information in boxes e, f, and g of Form

Forms W-2c and W-3c if an error was made on a previously

W-3 as it appears on the agent’s related employment tax

filed Form W-3.

returns (for example, Form 941). Enter the client-employer’s

If you discover an error on Form W-2 after you issue it to

EIN in box h of Form W-3 if the Forms W-2 relate to only

your employee but before you send it to the SSA, check the

one employer (other than the agent); if not, leave box h

“Void” box at the top of the incorrect Form W-2 on Copy A.

blank. See Rev. Proc. 70-6, 1970-1 C.B. 420, for procedures

Prepare a new Form W-2 with the correct information, and

to be followed in applying to be an agent.

send Copy A to the SSA. Write “CORRECTED” on the

Generally, an agent is not responsible for refunding

employee’s new copies (B, C, and 2), and furnish them to

TIP

excess social security or railroad retirement (RRTA)

the employee. If the “Void” Form W-2 is on a page with a

tax on employees. If an employee worked for more

correct Form W-2, send the entire page to the SSA. The

than one employer during 2006 and had more than

“Void” form will not be processed. Do not write

$5,840.40 in social security and Tier I RRTA tax withheld (or

“CORRECTED” on Copy A of Form W-2.

-4-

Instructions For Forms W-2 And W-3 - Wage And Tax Statement And Transmittal Of Wage And Tax Statements - 2006 Page 8

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