Instructions For Forms W-2 And W-3 - Wage And Tax Statement And Transmittal Of Wage And Tax Statements - 2017 Page 9
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33Box 1 – 10000.00 (does not include the $3,000 accrued
If the election worker is employed in another capacity
wages and vacation pay)
with the same government entity, see Rev. Rul. 2000-6,
Box 2 – 1500.00
which is on page 512 of Internal Revenue Bulletin 2000-6
Box 3 – 13000.00 (includes the $3,000 accrued wages
at IRS.gov/pub/irs-irbs/irb00-06.pdf.
and vacation pay)
Employee business expense reimbursements.
Box 4 – 806.00 (6.2% of the amount in box 3)
Reimbursements to employees for business expenses
Box 5 – 13000.00 (includes the $3,000 accrued wages
must be reported as follows.
and vacation pay)
Generally, payments made under an accountable plan
Box 6 – 188.50 (1.45% of the amount in box 5)
are excluded from the employee's gross income and are
Employer X also must complete Form 1099-MISC
not reported on Form W-2. However, if you pay a per diem
as follows.
or mileage allowance and the amount paid for
!
substantiated miles or days traveled exceeds the amount
CAUTION
treated as substantiated under IRS rules, you must report
Boxes for recipient’s name, address, and TIN—the
as wages on Form W-2 the amount in excess of the
estate's name, address, and TIN.
amount treated as substantiated. The excess amount is
Box 3: 3000.00 (Even though amounts were withheld
subject to income tax withholding and social security and
for social security and Medicare taxes, the gross amount
Medicare taxes (or railroad retirement taxes, if
is reported here.)
applicable). Report the amount treated as substantiated
If Employer X made the payment after the year of
(that is, the nontaxable portion) in box 12 using code L.
death, the $3,000 would not be subject to social security
See Box 12—Codes for Code L— Substantiated
and Medicare taxes and would not be shown on Form
employee business expense reimbursements. (Use
W-2. However, the employer would still file Form
box 14 if railroad retirement taxes apply.)
1099-MISC.
Payments made under a nonaccountable plan are
reported as wages on Form W-2 and are subject to
Designated Roth contributions. Under section 402A, a
federal income tax withholding and social security and
participant in a section 401(k) plan, under a 403(b) salary
Medicare taxes (or railroad retirement taxes, if
reduction agreement, or in a governmental 457(b) plan
applicable). (Use box 14 if railroad retirement taxes
that includes a qualified Roth contribution program, may
apply.)
elect to make designated Roth contributions to the plan or
program in lieu of elective deferrals. Designated Roth
For more information on accountable plans,
contributions are subject to federal income tax withholding
nonaccountable plans, amounts treated as substantiated
and social security and Medicare taxes (and railroad
under a per diem or mileage allowance, the standard
retirement taxes, if applicable) and must be reported in
mileage rate, the per diem substantiation method, and the
boxes 1, 3, and 5. (Use box 14 if railroad retirement taxes
high-low substantiation method, see Pub. 463, Travel,
apply.)
Entertainment, Gift, and Car Expenses; and section 5 of
Pub. 15 (Circular E).
Section 402A requires separate reporting of the yearly
designated Roth contributions. Designated Roth
Employee's social security and Medicare taxes (or
contributions to 401(k) plans will be reported using code
railroad retirement taxes, if applicable) paid by em-
AA in box 12; designated Roth contributions under 403(b)
ployer. If you paid your employee's share of social
salary reduction agreements will be reported using code
security and Medicare taxes rather than deducting them
BB in box 12; and designated Roth contributions under a
from the employee's wages, you must include these
governmental section 457(b) plan will be reported using
payments as wages subject to federal (or American
code EE in box 12. For reporting instructions, see Box
Samoa, CNMI, Guam, or U.S. Virgin Islands) income tax
12—Codes for Code AA, Code BB, and Code EE.
withholding and social security, Medicare, and federal
unemployment (FUTA) taxes. If you paid your employee's
Educational assistance programs. Employer-provided
share of railroad retirement taxes, you must include these
educational assistance that qualifies as a working
amounts as compensation subject to railroad retirement
condition benefit is excludable from an employee's
taxes. The amount to include as wages and/or
wages. For employer-provided educational assistance
compensation is determined by using the formula
that does not qualify as a working condition benefit, a
contained in the discussion of Employee's Portion of
$5,250 exclusion may apply if the assistance is provided
Taxes Paid by Employer in section 7 of Pub. 15-A and in
under an educational assistance program under section
Rev. Proc. 83-43, 1983-24 I.R.B. 60.
127. See Pub. 970, Tax Benefits for Education, and
section 2 of Pub. 15-B for more information. Also see Box
This does not apply to household and agricultural
1—Wages, tips, other compensation.
employers. If you pay a household or agricultural
!
employee's social security and Medicare taxes,
Election workers. Report on Form W-2 payments of
CAUTION
you must include these payments in the employee's
$600 or more to election workers for services performed
wages for income tax withholding purposes. However, the
in state, county, and municipal elections. File Form W-2
wage increase due to the tax payments is not subject to
for payments of less than $600 paid to election workers if
social security, Medicare, or FUTA taxes. For information
social security and Medicare taxes were withheld under a
on completing Forms W-2 and W-3 in this situation, see
section 218 (Social Security Act) agreement. Do not
the Instructions for Schedule H (Form 1040) and section 4
report election worker payments on Form 1099-MISC.
of Pub. 51 (Circular A).
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General Instructions for Forms W-2 and W-3 (2017)
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