Instructions For Forms W-2 And W-3 - Wage And Tax Statement And Transmittal Of Wage And Tax Statements - 2016 Page 19
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32Code H—Elective deferrals under section 501(c)
under a section 408(p) salary reduction SIMPLE
(18)(D) tax-exempt organization plan. Be sure to
retirement account. However, if the SIMPLE plan is part of
include this amount in box 1 as wages. The employee will
a section 401(k) arrangement, use code D. If you are
deduct the amount on his or her Form 1040.
reporting prior year contributions under USERRA, see the
TIP above Code D in Box 12—Codes.
Code J—Nontaxable sick pay. Show any sick pay
that was paid by a third-party and was not includible in
Code T—Adoption benefits. Show the total that you
income (and not shown in boxes 1, 3, and 5) because the
paid or reimbursed for qualified adoption expenses
employee contributed to the sick pay plan. Do not include
furnished to your employee under an adoption assistance
nontaxable disability payments made directly by a state.
program. Also include adoption benefits paid or
reimbursed from the pre-tax contributions made by the
Code K—20% excise tax on excess golden
employee under a section 125 (cafeteria) plan. However,
parachute payments (not applicable to Forms
do not include adoption benefits forfeited from a section
W-2AS, W-2CM, W-2GU, or W-2VI). If you made excess
125 (cafeteria) plan. Report all amounts including those in
golden parachute payments to certain key corporate
excess of the $13,460 exclusion. For more information,
employees, report the 20% excise tax on these payments.
see Adoption benefits.
If the excess payments are considered to be wages,
report the 20% excise tax withheld as income tax withheld
Code V—Income from the exercise of nonstatutory
in box 2.
stock option(s). Show the spread (that is, the fair market
value of stock over the exercise price of option(s) granted
Code L—Substantiated employee business
to your employee with respect to that stock) from your
expense reimbursements. Use this code only if you
employee's (or former employee's) exercise of
reimbursed your employee for employee business
nonstatutory stock option(s). Include this amount in boxes
expenses using a per diem or mileage allowance and the
1, 3 (up to the social security wage base), and 5. Include
amount that you reimbursed exceeds the amount treated
this amount in box 14 if you are a railroad employer.
as substantiated under IRS rules. See Employee business
expense reimbursements.
This reporting requirement does not apply to the
exercise of a statutory stock option, or the sale or
Report in box 12 only the amount treated as
disposition of stock acquired pursuant to the exercise of a
substantiated (such as the nontaxable part). Include in
statutory stock option. For more information about the
boxes 1, 3 (up to the social security wage base), and 5 the
taxability of employee stock options, see Pub. 15-B.
part of the reimbursement that is more than the amount
treated as substantiated. Report the unsubstantiated
Code W—Employer contributions to a health
amounts in box 14 if you are a railroad employer.
savings account (HSA). Show any employer
contributions (including amounts the employee elected to
Code M—Uncollected social security or RRTA tax
contribute using a section 125 (cafeteria) plan) to an HSA.
on taxable cost of group-term life insurance over
See Health savings account (HSA).
$50,000 (for former employees). If you provided your
former employees (including retirees) more than $50,000
Code Y—Deferrals under a section 409A
of group-term life insurance coverage for periods during
nonqualified deferred compensation plan. It is not
which an employment relationship no longer exists, enter
necessary to show deferrals in box 12 with code Y. For
the amount of uncollected social security or RRTA tax on
more information, see Notice 2008-115. However, if you
the coverage in box 12. Do not include this amount in
report these deferrals, show current year deferrals,
box 4. Also see Group-term life insurance.
including earnings during the year on current year and
prior year deferrals. See Nonqualified deferred
Code N—Uncollected Medicare tax on taxable cost
compensation plans under Special Reporting Situations
of group-term life insurance over $50,000 (for former
for Form W-2.
employees). If you provided your former employees
(including retirees) more than $50,000 of group-term life
Code Z—Income under a nonqualified deferred
insurance coverage for periods during which an
compensation plan that fails to satisfy section 409A.
employment relationship no longer exists, enter the
Enter all amounts deferred (including earnings on
amount of uncollected Medicare tax or RRTA Medicare
amounts deferred) that are includible in income under
tax on the coverage in box 12. Do not show any
section 409A because the NQDC plan fails to satisfy the
uncollected Additional Medicare Tax. Do not include this
requirements of section 409A. Do not include amounts
amount in box 6. Also see Group-term life insurance.
properly reported on a Form 1099-MISC, corrected Form
1099-MISC, Form W-2, or Form W-2c for a prior year.
Code P—Excludable moving expense
Also, do not include amounts that are considered to be
reimbursements paid directly to employee. Show the
subject to a substantial risk of forfeiture for purposes of
total moving expense reimbursements that you paid
section 409A. For more information, see Regulations
directly to your employee for qualified (deductible) moving
sections 1.409A-1, -2,-3, and -6; and Notice 2008-115.
expenses. See Moving expenses.
Code Q—Nontaxable combat pay. If you are a
The amount reported in box 12 using code Z is also
military employer, report any nontaxable combat pay in
reported in box 1 and is subject to an additional tax
box 12.
reported on the employee's Form 1040. See Nonqualified
Code R—Employer contributions to an Archer
deferred compensation plans under Special Reporting
MSA. Show any employer contributions to an Archer
Situations for Form W-2.
MSA. See Archer MSA.
For information regarding correcting section 409A
Code S—Employee salary reduction contributions
errors and related reporting, see Notice 2008-113, Notice
under a section 408(p) SIMPLE plan. Show deferrals
2010-6, and Notice 2010-80.
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General Instructions for Forms W-2 and W-3 (2016)
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