Instructions For Forms W-2 And W-3 - Wage And Tax Statement And Transmittal Of Wage And Tax Statements - 2016 Page 11
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32196, is available at
2008-52 I.R.B. 1367, available at
ar08.html. Notice 2008-52, 2008-25 I.R.B. 1166, is
2008-52_IRB/ar10.html.
available at 2008-25_IRB/ar10.html. Also
Income included under section 409A from an NQDC
see Form 8889, Health Savings Accounts (HSAs), and
plan will be reported in box 1 and in box 12 using code Z.
Pub. 969.
This income is also subject to an additional tax of 20%
that is reported on Form 1040. For more information on
Lost Form W-2—reissued statement. If an employee
amounts includible in gross income and reporting
loses a Form W-2, write “REISSUED STATEMENT” on
requirements, see Notice 2008-115 avaliable at
the new copy and furnish it to the employee. You do not
2008-52_IRB/ar10.html. For information
have to add “REISSUED STATEMENT” on Forms W-2
on correcting failures to comply with section 409A and
provided to employees electronically. Do not send Copy A
related reporting, see Notice 2008-113, 2008-51 I.R.B.
of the reissued Form W-2 to the SSA. Employers are not
1305, available at
2008-51_IRB/
prohibited (by the Internal Revenue Code) from charging
ar12.html; Notice 2010-6, 2010-3 I.R.B. 275, available at
a fee for the issuance of a duplicate Form W-2.
2010-3_IRB/ar08.html; and Notice
Military differential pay. Employers paying their
2010-80, 2010-51 I.R.B. 853, available at
employees while they are on active duty in the United
2010-51_IRB/ar08.html.
States uniformed services should treat these payments as
See the Nonqualified Deferred Compensation
wages. Differential wage payments made to an individual
Reporting Example Chart.
while on active duty for periods scheduled to exceed 30
days are subject to income tax withholding, but are not
Railroad employers (not applicable to Forms W-2AS,
subject to social security, Medicare, and unemployment
W-2CM, W-2GU, or W-2VI). Railroad employers must
taxes. Report differential wage payments in box 1 and any
file Form W-2 to report their employees' wages and
federal income tax withholding in box 2. Differential wage
income tax withholding in boxes 1 and 2. You must file a
payments made to an individual while on active duty for
separate Form W-3 to transmit the Forms W-2 if you have
30 days or less are subject to income tax withholding,
employees covered under the Federal Insurance
social security, Medicare, and unemployment taxes, and
Contributions Act (FICA) (social security and Medicare)
are reported in boxes 1, 3, and 5. See Rev. Rul. 2009-11,
and the Railroad Retirement Tax Act (RRTA).
2009-18 I.R.B. 896, available at
On the Form W-3, check the “CT-1” checkbox in box b
2009-18_IRB/ar07.html.
“Kind of Payer” used to transmit Forms W-2 for employees
with box 1 wages and box 2 tax withholding. On the Form
Moving expenses. Report moving expenses as follows.
W-2, use box 14 for employees covered by RRTA tax,
Qualified moving expenses that an employer paid to a
report the RRTA compensation, Tier 1, Tier 2, Medicare,
third party on behalf of the employee (for example, to a
and any Additional Medicare Tax withheld. Label them
moving company) and services that an employer
“RRTA compensation,” “Tier 1 tax,” “Tier 2 tax,” “Medicare
furnished in kind to an employee are not reported on Form
tax,” and “Additional Medicare Tax.” Include tips reported
W-2.
by the employee to the employer in “RRTA
Qualified moving expense reimbursements paid directly
compensation.”
to an employee by an employer are reported only in
On the Form W-3, check the “941” checkbox in box b
box 12 of Form W-2 with code P.
“Kind of Payer” used to transmit Forms W-2 for employees
Nonqualified moving expense reimbursements are
covered by social security and Medicare. On the Form
reported in boxes 1, 3, and 5 (use box 14 if railroad
W-2, complete boxes 3, 4, 5, 6, and 7 to show the social
retirement taxes apply) of Form W-2. These amounts are
security and Medicare wages and taxes. These boxes
subject to federal income tax withholding and social
apply only to covered social security and Medicare wages
security and Medicare taxes (or railroad retirement taxes,
and taxes. They are not to be used to report railroad
if applicable).
retirement compensation and taxes.
For more information on qualified and nonqualified
moving expenses, see Pub. 521, Moving Expenses.
Repayments. If an employee repays you for wages
received in error, do not offset the repayments against
Nonqualified deferred compensation plans. Section
current year wages unless the repayments are for
409A provides that all amounts deferred under a
amounts received in error in the current year. Repayments
nonqualified deferred compensation (NQDC) plan for all
made in the current year, but related to a prior year or
tax years are currently includible in gross income to the
years, must be repaid in gross, not net, and require
extent not subject to a substantial risk of forfeiture and not
special tax treatment by employees in some cases. You
previously included in gross income, unless certain
may advise the employee of the total repayments made
requirements are met. Generally, section 409A is effective
during the current year and the amount (if any) related to
with respect to amounts deferred in tax years beginning
prior years. This information will help the employee
after December 31, 2004, but deferrals made before that
account for such repayments on his or her federal income
year may be subject to section 409A under some
tax return.
circumstances.
If the repayment was for a prior year, you must file
It is not necessary to show amounts deferred during the
Form W-2c with the SSA to correct only social security
year under an NQDC plan subject to section 409A. If you
and Medicare wages and taxes, and furnish a copy to the
report section 409A deferrals, show the amount in box 12
employee. Do not correct "Wages, tips, other
using code Y. For more information, see Notice 2008-115,
compensation" in box 1, or "Federal income tax withheld"
-11-
General Instructions for Forms W-2 and W-3 (2016)
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial