Explanation Of 2016 Wage And Tax Statement (Irs Form W-2) (Page 2 of 4) in pdf

Explanation Of 2016 Wage And Tax Statement (Irs Form W-2) Page 2

● Agency paid life insurance valued over $50,000 and

● Child care subsidy over $5,000 is taxable wages and will be included in

this box (the total child care subsidy is reflected in Box 10).

The following are items excluded from your total wages and other

compensation:

● TSP employee’s contribution or other qualified plans (403(b) and 457b)

reflected in Box 12,

● Federal Employee Health Benefits (FEHB) premiums (unless you

opted out of the pretax benefit),

● Foreign or non-foreign cost-of-living allowance payments,

● Education allowance payments,

● Living quarters allowance payments,

● Health Savings Account (HSA),

● Repayments of terminal leave,

● Flexible Spending Accounts (FSA) for Health Care (HC) or Dependent

Care (DC) and

● Transit Benefit – GSA Transit Pass Subsidy and/or Pretax

Transportation Fringe Benefits (TEA-21).

When comparing your final Earnings and Leave Statement (for pay period

ending Dec. 24, 2016) to Box 1, these items must be taken into consideration.

Please see the discussion of TSP and TEA-21 below.

Box 2 - This is the amount of federal income tax withheld.

Box 3 - This is the amount of your wages subject to Old Age, Survivors and Disability

Insurance (OASDI), known as Social Security, which should not exceed $118,500.00 for

2016. The following deductions are excluded from your social security wages:

● FEHB premiums, unless you opted out,

● FSA for HC or DC and

● Transit Benefits –TEA-21.

Box 4 - This is the amount of Social Security tax withheld and should not exceed

$7,347.00 for 2016 ($118,500 x 6.2%). The Social Security tax is 6.2% of social

security wages. If this amount exceeds the $7,347.00 maximum, please advise the

PSB.

Box 5 - This is the amount of wages subject to Medicare taxes. There was no limitation

on Medicare wages for 2016. The following deductions are excluded from your

Medicare wages:

● FEHB Premiums, unless you opted out,

● FSA for HC or DC and

● Transit Benefit – GSA TEA-21.

Explanation Of 2016 Wage And Tax Statement (Irs Form W-2) Page 2