Instructions For Forms W-2 And W-3 - 2010 (Page 4 of 15) in pdf

Adoption benefits. Amounts paid or expenses incurred by an

96-53, which is found on page 5 of Internal Revenue Bulletin

employer for qualified adoption expenses under an adoption

1996-51 at

assistance program are not subject to federal income tax

Clergy and religious workers. For certain members of the

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

clergy and religious workers who are not subject to social

amounts (including adoption benefits paid from a section 125

security and Medicare taxes as employees, boxes 3 and 5 of

(cafeteria) plan, but not including adoption benefits forfeited

Form W-2 should be left blank. You may include a minister’s

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

parsonage and/or utilities allowance in box 14. For information

and railroad retirement taxes and must be reported in boxes 3

on the rules that apply to ministers and certain other religious

and 5. Also, the total amount must be reported in box 12 with

workers, see Pub. 517, Social Security and Other Information

code T.

for Members of the Clergy and Religious Workers, and Section

4 – Religious Exemptions in Pub. 15-A.

For more information on adoption benefits, see Notice 97-9,

1997-1 C.B. 365, which is on page 35 of Internal Revenue

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

Bulletin 1997-2 at Advise

Corrected Wage and Tax Statement, to correct errors (such as

your employees to see the Instructions for Form 8839, Qualified

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

Adoption Expenses.

W-2. To file your corrections electronically, see Online wage

reporting on page 1.

Agent reporting. Generally, an agent who has an approved

If the SSA issues your employee a replacement card after a

Form 2678, Employer/Payer Appointment of Agent, should

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

enter the agent’s name as the employer in box c of Form W-2,

number after a change in alien work status, file a Form W-2c to

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

correct the name/SSN reported on the most recently filed Form

agent (a) is acting as an agent for two or more employers or is

W-2. It is not necessary to correct the prior years if the previous

an employer and is acting as an agent for another employer,

name and number were used for the years prior to the most

and (b) pays social security wages for more than one employer

recently filed Form W-2.

in excess of the wage base to an individual, the agent must file

separate Forms W-2 for the affected employee reflecting the

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

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

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

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

if you are only filing a Form W-2c to correct an employee’s

(Name of agent)

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

Agent for (name of employer)

Form W-2 below for information on correcting an employee’s

Address of agent

address. See the Instructions for Forms W-2c and W-3c if an

error was made on a previously filed Form W-3.

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

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

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

An agent files one Form W-3 for all of the Forms W-2 and

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

enters its own information in boxes e, f, and g of Form W-3 as it

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

appears on the agent’s related employment tax returns (for

Copy A to the SSA. Write “CORRECTED” on the employee’s

example, Form 941). Enter the client-employer’s EIN in box h of

new copies (B, C, and 2), and furnish them to the employee. If

Form W-3 if the Forms W-2 relate to only one employer (other

the “Void” Form W-2 is on a page with a correct Form W-2,

than the agent); if not, leave box h blank. See Rev. Proc. 70-6,

send the entire page to the SSA. The “Void” form will not be

1970-1 C.B. 420, for procedures to be followed in applying to be

processed. Do not write “CORRECTED” on Copy A of Form

an agent.

W-2.

Generally, an agent is not responsible for refunding

If you are making a correction for a previously filed Form

TIP

excess social security or railroad retirement (RRTA) tax

941, Form 943, or Form 944, use Form 941-X, Adjusted

on employees. If an employee worked for more than one

Employer’s QUARTERLY Federal Tax Return or Claim for

employer during 2010 and had more than $6,621.60 in social

Refund, Form 943-X, Adjusted Employer’s ANNUAL Federal

security and Tier I RRTA tax withheld, he or she should claim

Tax Return for Agricultural Employees or Claim for Refund, or

the excess on the appropriate line of Form 1040 or Form

Form 944-X, Adjusted Employer’s ANNUAL Federal Tax Return

1040A. If an employee had more than $3,088.80 in Tier II

or Claim for Refund, for the return period in which you found the

RRTA tax withheld from more than one employer, the employee

error. See the Instructions for Form 941-X for more details.

should claim a refund on Form 843, Claim for Refund and

Issue the employee a Form W-2c if the error discovered was for

Request for Abatement.

the prior year. If you are correcting social security or Medicare

wages or tips, also file the entire Copy A page of Form W-2c

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

and Form W-3c with the SSA to correct the social security

Archer MSA is not subject to federal income tax withholding, or

records and any other items on the original Form W-2 (or

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

previously filed Form W-2c) that were in error.

reasonable to believe at the time of the payment that the

contribution will be excludable from the employee’s income.

Incorrect address on employee’s Form W-2. If you filed a

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

Form W-2 with the SSA showing an incorrect address for the

payment that the contribution will be excludable from the

employee but all other information on the Form W-2 is correct,

employee’s income, employer contributions are subject to

do not file Form W-2c with the SSA merely to correct the

income tax withholding and social security and Medicare taxes

address. However, if the address was incorrect on the Form

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

W-2 furnished to the employee, you must do one of the

in boxes 1, 3, and 5.

following.

•

Issue a new, corrected Form W-2 to the employee, including

You must report all employer contributions to an Archer MSA

the new address. Indicate “REISSUED STATEMENT” on the

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

new copies. Do not send copy A to the SSA.

an Archer MSA that are not excludable from the income of the

•

Issue a Form W-2c to the employee showing the correct

employee also must be reported in box 1.

address in box i and all other correct information. Do not send

An employee’s contributions to an Archer MSA are includible

copy A to the SSA.

•

in income as wages and are subject to federal income tax

Reissue a Form W-2 with the incorrect address to the

withholding and social security and Medicare taxes (or railroad

employee in an envelope showing the correct address or

retirement taxes, if applicable). Employee contributions are

otherwise deliver it to the employee.

deductible, within limits, on the employee’s Form 1040.

Deceased employee’s wages. If an employee dies during the

For more information, see Pub. 969, Health Savings

year, you must report the accrued wages, vacation pay, and

Accounts and Other Tax-Favored Health Plans, and Notice

other compensation paid after the date of death. Wages that

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

Instructions For Forms W-2 And W-3 - 2010 Page 4

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