Instructions For Forms W-2 And W-3 - 2010 (Page 12 of 15) in pdf

Code L — Substantiated employee business expense

Code Y — Deferrals under a section 409A nonqualified

reimbursements. Use this code only if you reimbursed your

deferred compensation plan. It is not necessary to show

employee for employee business expenses using a per diem or

deferrals in box 12 with code Y. For more information, see

mileage allowance and the amount that you reimbursed

Notice 2008-115. However, if you report these deferrals, show

exceeds the amount treated as substantiated under IRS rules.

current year deferrals, including earnings during the year on

See Employee business expense reimbursements on page 5.

current year and prior year deferrals. See Nonqualified deferred

compensation plans on page 6.

Report in box 12 only the amount treated as substantiated

Code Z — Income under section 409A on a nonqualified

(such as the nontaxable part). In boxes 1, 3 (up to the social

deferred compensation plan. Enter all amounts deferred

security wage base), and 5, include the part of the

(including earnings on amounts deferred) that are includible in

reimbursement that is more than the amount treated as

income under section 409A because the NQDC plan fails to

substantiated.

satisfy the requirements of section 409A. Do not include

Code M — Uncollected social security or RRTA tax on

amounts properly reported on a Form 1099-MISC, corrected

taxable cost of group-term life insurance over $50,000 (for

Form 1099-MISC, Form W-2, or Form W-2c for a prior year.

former employees). If you provided your former employees

Also, do not include amounts that are considered to be subject

(including retirees) more than $50,000 of group-term life

to a substantial risk of forfeiture for purposes of section 409A.

insurance coverage for periods during which an employment

For more information, see Regulations sections 1.409A-1

relationship no longer exists, enter the amount of uncollected

through 1.409A-6, Notice 2008-113, and Notice 2008-115.

social security or RRTA tax on the coverage in box 12. Also see

The amount reported in box 12 using code Z is also reported

Group-term life insurance on page 6.

in box 1, and is subject to an additional tax reported on the

Code N — Uncollected Medicare tax on taxable cost of

employee’s Form 1040. See Nonqualified deferred

group-term life insurance over $50,000 (for former

compensation plans on page 6.

employees). If you provided your former employees (including

Code AA — Designated Roth contributions under a

retirees) more than $50,000 of group-term life insurance

section 401(k) plan. Use this code to report designated Roth

coverage for periods during which an employment relationship

contributions under a section 401(k) plan. Do not use this code

no longer exists, enter the amount of uncollected Medicare tax

to report elective deferrals under code D. See Designated Roth

or RRTA Medicare tax on the coverage in box 12. Also see

contributions on page 5.

Group-term life insurance on page 6.

Code BB — Designated Roth contributions under a

Code P — Excludable moving expense reimbursements

section 403(b) plan. Use this code to report designated Roth

paid directly to employee. Show the total moving expense

contributions under a section 403(b) plan. Do not use this code

reimbursements that you paid directly to your employee for

to report elective deferrals under code E. See Designated Roth

qualified (deductible) moving expenses. See Moving expenses

contributions on page 5.

on page 6.

Box 13 — Checkboxes. Check all boxes that apply.

•

Code Q — Nontaxable combat pay. If you are a military

Statutory employee. Check this box for statutory employees

employer, report any nontaxable combat pay in box 12.

whose earnings are subject to social security and Medicare

taxes but not subject to federal income tax withholding. Do not

Code R — Employer contributions to an Archer MSA.

check this box for common-law employees. There are workers

Show any employer contributions to an Archer MSA. See

who are independent contractors under the common-law rules

Archer MSA on page 4.

but are treated by statute as employees. They are called

Code S — Employee salary reduction contributions

statutory employees.

under a section 408(p) SIMPLE. Show deferrals under a

1. A driver who distributes beverages (other than milk), or

section 408(p) salary reduction SIMPLE retirement account.

meat, vegetable, fruit, or bakery products; or who picks up and

However, if the SIMPLE is part of a section 401(k)

delivers laundry or dry cleaning if the driver is your agent or is

arrangement, use code D. If you are reporting prior year

paid on commission.

contributions under USERRA, see the TIP before Code D on

2. A full-time life insurance sales agent whose principal

page 11.

business activity is selling life insurance or annuity contracts, or

Code T — Adoption benefits. Show the total that you paid

both, primarily for one life insurance company.

or reimbursed for qualified adoption expenses furnished to your

3. An individual who works at home on materials or goods

employee under an adoption assistance program. Also include

that you supply and that must be returned to you or to a person

adoption benefits paid or reimbursed from the pre-tax

you name if you also furnish specifications for the work to be

contributions made by the employee under a section 125

done.

(cafeteria) plan. However, do not include adoption benefits

4. A full-time traveling or city salesperson who works on

forfeited from a section 125 (cafeteria) plan. Report all amounts

your behalf and turns in orders to you from wholesalers,

including those in excess of the $12,170 exclusion. For more

retailers, contractors, or operators of hotels, restaurants, or

information, see Adoption benefits on page 4.

other similar establishments. The goods sold must be

merchandise for resale or supplies for use in the buyer’s

Code V — Income from the exercise of nonstatutory

business operation. The work performed for you must be the

stock option(s). Show the spread (that is, the fair market

salesperson’s principal business activity.

value of stock over the exercise price of option(s) granted to

For details on statutory employees and common-law

your employee with respect to that stock) from your employee’s

employees, see section 1 in Pub. 15-A.

(or former employee’s) exercise of nonstatutory stock option(s).

•

Retirement plan. Check this box if the employee was an

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

“active participant” (for any part of the year) in any of the

wage base), and 5.

following:

This reporting requirement does not apply to the exercise of

1. A qualified pension, profit-sharing, or stock-bonus plan

a statutory stock option, or the sale or disposition of stock

described in section 401(a) (including a 401(k) plan).

acquired pursuant to the exercise of a statutory stock option.

2. An annuity plan described in section 403(a).

For more information about the taxability of employee stock

3. An annuity contract or custodial account described in

options, see Pub. 15-B.

section 403(b).

Code W — Employer contributions to a health savings

4. A simplified employee pension (SEP) plan described in

account (HSA). Show any employer contributions (including

section 408(k).

amounts the employee elected to contribute using a section 125

5. A SIMPLE retirement account described in section

(cafeteria) plan) to an HSA. See Health savings account (HSA)

408(p).

on page 6.

6. A trust described in section 501(c)(18).

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

Instructions For Forms W-2 And W-3 - 2010 Page 12

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