Instructions For Forms W-2 And W-3 - Wage And Tax Statement And Transmittal Of Wage And Tax Statements - 2017 Page 8
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33irb97-02.pdf. Advise your employees to see the
Employee contributions are deductible, within limits, on
Instructions for Form 8839, Qualified Adoption Expenses.
the employee's Form 1040.
For more information, see Pub. 969, Health Savings
Agent reporting. An agent who has an approved Form
Accounts and Other Tax-Favored Health Plans, and
2678, Employer/Payer Appointment of Agent, should
Notice 96-53, which is found on page 5 of Internal
enter the following in box c of Form W-2:
Revenue Bulletin 1996-51 at
IRS.gov/pub/irs-irbs/
(Name of agent)
irb96-51.pdf.
Agent for (name of employer)
Address of agent
Clergy and religious workers. For certain members of
the clergy and religious workers who are not subject to
Each Form W-2 should reflect the EIN of the agent in
social security and Medicare taxes as employees, boxes
box b. An agent files one Form W-3 for all of the Forms
3 and 5 of Form W-2 should be left blank. You may
W-2 and enters its own information in boxes e, f, and g of
include a minister's parsonage and/or utilities allowance in
Form W-3 as it appears on the agent's related
box 14. For information on the rules that apply to ministers
employment tax returns (for example, Form 941). Enter
and certain other religious workers, see Pub. 517, Social
the client-employer's EIN in box h of Form W-3 if the
Security and Other Information for Members of the Clergy
Forms W-2 relate to only one employer (other than the
and Religious Workers, and section 4 in Pub. 15-A.
agent); if not, leave box h blank.
Deceased employee's wages. If an employee dies
If the agent (a) is acting as an agent for two or more
during the year, you must report the accrued wages,
employers or is an employer and is acting as an agent for
vacation pay, and other compensation paid after the date
another employer, and (b) pays social security wages to
of death. Also report wages that were available to the
an individual on behalf of more than one employer, the
employee while he or she was alive, regardless of
agent should file separate Forms W-2 for the affected
whether they actually were in the possession of the
employee reflecting the wages paid by each employer.
employee, as well as any other regular wage payment,
See Rev. Proc. 2013-39, 2013-52 I.R.B. 830 available
even if you may have to reissue the payment in the name
at IRS.gov/irb/2013-52_IRB/ar15.html; and Form 2678
of the estate or beneficiary.
instructions for procedures to be followed in applying to
If you made the payment after the employee's death
be an agent.
but in the same year the employee died, you must
Generally, an agent is not responsible for
withhold social security and Medicare taxes on the
refunding excess social security or railroad
payment and report the payment on the employee's Form
TIP
retirement (RRTA) tax withheld from employees. If
W-2 only as social security and Medicare wages to ensure
an employee worked for more than one employer during
proper social security and Medicare credit is received. On
2017 and had more than $7,886.40 in social security and
the employee's Form W-2, show the payment as social
Tier 1 RRTA tax withheld, he or she should claim the
security wages (box 3) and Medicare wages and tips
excess on the appropriate line of Form 1040, Form
(box 5) and the social security and Medicare taxes
1040A, or Form 1040NR. If an employee had more than
withheld in boxes 4 and 6. Do not show the payment in
$4,630.50 in Tier 2 RRTA tax withheld from more than one
box 1.
employer, the employee should claim a refund on Form
If you made the payment after the year of death, do not
843, Claim for Refund and Request for Abatement.
report it on Form W-2, and do not withhold social security
and Medicare taxes.
Archer MSA. An employer's contribution to an
Whether the payment is made in the year of death or
employee's Archer MSA is not subject to federal income
after the year of death, you also must report it in box 3 of
tax withholding or social security, Medicare, or railroad
Form 1099-MISC, Miscellaneous Income, for the payment
retirement taxes if it is reasonable to believe at the time of
to the estate or beneficiary. Use the name and taxpayer
the payment that the contribution will be excludable from
identification number (TIN) of the payment recipient on
the employee's income. However, if it is not reasonable to
Form 1099-MISC. However, if the payment is a
believe at the time of payment that the contribution will be
reissuance of wages that were constructively received by
excludable from the employee's income, employer
the deceased individual while he or she was still alive, do
contributions are subject to income tax withholding and
not report it on Form 1099-MISC.
social security and Medicare taxes (or railroad retirement
taxes, if applicable) and must be reported in boxes 1, 3,
Example. Before Employee A's death on June 15,
and 5. (Use box 14 if railroad retirement taxes apply.)
2017, A was employed by Employer X and received
$10,000 in wages on which federal income tax of $1,500
You must report all employer contributions to an Archer
was withheld. When A died, X owed A $2,000 in wages
MSA in box 12 of Form W-2 with code R. Employer
and $1,000 in accrued vacation pay. The total of $3,000
contributions to an Archer MSA that are not excludable
(less the social security and Medicare taxes withheld) was
from the income of the employee also must be reported in
paid to A's estate on July 6, 2017. Because X made the
boxes 1, 3, and 5 ( box 14 if railroad retirement taxes
payment during the year of death, X must withhold social
apply).
security and Medicare taxes on the $3,000 payment and
An employee's contributions to an Archer MSA are
must complete Form W-2 as follows.
includible in income as wages and are subject to federal
Box a – Employee A's SSN
income tax withholding and social security and Medicare
Box e – Employee A's name
taxes (or railroad retirement taxes, if applicable).
Box f – Employee A's address
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General Instructions for Forms W-2 and W-3 (2017)
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