Instructions For Forms W-2 And W-3 - 2010 (Page 11 of 15) in pdf

government plans). Instead, use box 14 for these items and any

USERRA under a section 401(k) plan are reported in box 12 as

other information that you wish to give to your employee. For

follows:

example, union dues and uniform payments may be reported in

D 08 2250.00, D 09 1250.00. A 2010 contribution of $7,000

box 14.

does not require a year designation; enter it as D 7000.00.

Report the code (and year for prior year USERRA contributions)

On Copy A (Form W-2), do not enter more than four

to the left of the vertical line in boxes 12a through 12d.

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items in box 12. If more than four items need to be

reported in box 12, use a separate Form W-2 to report

The following are not elective deferrals and may be reported

the additional items (but enter no more than four items on each

in box 14, but not in box 12.

•

Copy A (Form W-2)). On all other copies of Form W-2 (Copies

Nonelective employer contributions made on behalf of an

B, C, etc.), you may enter more than four items in box 12 when

employee.

•

using an approved substitute Form W-2. See Multiple forms on

After-tax contributions that are not designated Roth

page 8.

contributions, such as voluntary contributions to a pension plan

that are deducted from an employee’s pay. See the instructions

Use the IRS code designated below for the item you are

in codes AA and BB for reporting designated Roth contributions

entering, followed by the dollar amount for that item. Even if

on page 12.

only one item is entered, you must use the IRS code

•

Required employee contributions.

designated for that item. Enter the code using a capital letter.

•

Employer matching contributions.

Use decimal points but not dollar signs or commas. For

example, if you are reporting $5,300.00 in elective deferrals

Code D — Elective deferrals under section 401(k) cash or

under a section 401(k) plan, the entry would be

deferred arrangement (plan). Also show deferrals under a

D 5300.00 (not A 5300.00 even though it is the first or only

SIMPLE retirement account that is part of a section 401(k)

entry in this box). Report the IRS code to the left of the vertical

arrangement.

line in boxes 12a through 12d and the money amount to the

Example of reporting excess elective deferrals and

right of the vertical line.

designated Roth contributions under a section 401(k) plan.

See the Form W-2 Reference Guide for Box 12 Codes on

For 2010, Employee A (age 45) elected to defer $18,300 under

page 15. See also the detailed instructions below for each

a section 401(k) plan. The employee also made a designated

code.

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

Code A — Uncollected social security or RRTA tax on

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

tips. Show the employee social security or Railroad

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

Retirement Tax Act (RRTA) tax on all of the employee’s tips

contribution of $2,000 to the plan and a nonelective

that you could not collect because the employee did not have

profit-sharing employer contribution of $3,000.

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

Even though the 2010 limit for elective deferrals and

amount in box 4.

designated Roth contributions is $16,500, the employee’s total

Code B — Uncollected Medicare tax on tips. Show the

elective deferral amount of $18,300 is reported in box 12 with

employee Medicare tax or RRTA Medicare tax on tips that you

code D (D 18300.00). The designated Roth contribution is

could not collect because the employee did not have enough

reported in box 12 with code AA (AA 1000.00). The employer

funds from which to deduct it. Do not include this amount in box

must separately report the actual amounts of $18,300 and

$1,000 in box 12 with the appropriate codes. The amount

deferred in excess of the limit is not reported in box 1. The

Code C — Taxable cost of group-term life insurance over

return of excess salary deferrals and excess designated

$50,000. Show the taxable cost of group-term life insurance

contributions, including earnings on both, is reported on Form

coverage over $50,000 provided to your employee (including a

1099-R.

former employee). See Group-term life insurance on page 6.

Also include this amount in boxes 1, 3 (up to the social security

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

wage base), and 5.

box 14 (this is optional) but not in box 12. The $2,000

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

nonelective contribution and the $3,000 nonelective

to show elective deferrals and designated Roth contributions

profit-sharing employer contribution are not required to be

made to the plans listed. Do not report amounts for other types

reported on Form W-2, but may be reported in box 14.

of plans. See the example for reporting elective deferrals under

Check the “Retirement plan” box in box 13.

a section 401(k) plan, later.

Code E — Elective deferrals under a section 403(b)

The amount reported as elective deferrals and designated

salary reduction agreement.

Roth contributions is only the part of the employee’s salary (or

Code F — Elective deferrals under a section 408(k)(6)

other compensation) that he or she did not receive because of

salary reduction SEP.

the deferrals or designated Roth contributions. Only elective

Code G — Elective deferrals and employer contributions

deferrals and designated Roth contributions should be reported

(including nonelective deferrals) to any governmental or

in box 12 for all coded plans; except, when using code G for

nongovernmental section 457(b) deferred compensation

section 457(b) plans, include both elective and nonelective

plan. Do not report either section 457(b) or section 457(f)

deferrals.

amounts that are subject to a substantial risk of forfeiture.

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

Code H — Elective deferrals under section 501(c)(18)(D)

time during the year and made elective deferral and/or

tax-exempt organization plan. Be sure to include this amount

designated Roth “catch-up” contributions, report the elective

in box 1 as wages. The employee will deduct the amount on his

deferrals and the elective deferral “catch-up” contributions as a

or her Form 1040.

single sum in box 12 using the appropriate code, and the

designated Roth contributions and designated Roth “catch-up”

Code J — Nontaxable sick pay. Show any sick pay that

contributions as a single sum in box 12 using the appropriate

was paid by a third-party and was not includible in income (and

code.

not shown in boxes 1, 3, and 5) because the employee

contributed to the sick pay plan. Do not include nontaxable

If any elective deferrals, salary reduction amounts, or

disability payments made directly by a state.

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nonelective contributions under a section 457(b) plan

during the year are makeup amounts under the

Code K — 20% excise tax on excess golden parachute

Uniformed Services Employment and Reemployment Rights

payments. If you made excess “golden parachute” payments

Act of 1994 (USERRA) for a prior year, you must enter the prior

to certain key corporate employees, report the 20% excise tax

year contributions separately. Beginning with the earliest year,

on these payments. If the excess payments are considered to

enter the code, the year, and the amount. For example, elective

be wages, report the 20% excise tax withheld as income tax

deferrals of $2,250 for 2008 and $1,250 for 2009 under

withheld in box 2.

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Instructions for Forms W-2 and W-3 (2010)

Instructions For Forms W-2 And W-3 - 2010 Page 11

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