Instructions For Forms W-2 And W-3 - Wage And Tax Statement And Transmittal Of Wage And Tax Statements - 2016 Page 29
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32Nonqualified Deferred Compensation Reporting Example Chart
Example
How to report on Form W-2
Example 1—Deferral, immediately vested (no risk of forfeiture).
Box 1 = $180 ($200 – $20)
Regular wages: $200
Boxes 3 and 5 = $210 ($200 + $10)
Defer, vested: $20
Box 11 = $0
Employer match, vested: $10
Example 2—Deferral, delayed vesting (risk of forfeiture) of employee and employer
Box 1 = $180 ($200 – $20)
portions.
Boxes 3 and 5 = $180 ($200 – $20)
Regular wages: $200
Box 11 = $0
Defer, not vested: $20
Employer match, not vested: $10
Example 3—Deferral, immediately vested. Prior year deferrals and employer
Box 1 = $180 ($200 – $20)
matches are now vesting.
Boxes 3 and 5 = $315 ($200 + $100 + $15)
Regular wages: $200
Box 11 = $115 ($100 + $15)
Defer, vested: $20
Vesting of prior-year deferrals and employer matches: $100 + $15 (earnings on
$100)
Example 4—No deferrals, but there are distributions. No vesting of prior year
Box 1 = $150 ($100 + $50)
deferrals.
Boxes 3 and 5 = $100
Regular wages: $100
Box 11 = $50
Distribution: $50
Special Rule for W-2 Box 11: Distributions and Deferrals in the Same Year – Form
If, in the same year, there are NQDC distributions and deferrals that are reportable
SSA-131
in boxes 3 and/or 5 (current or prior year deferrals), do not complete box 11.
Instead, report on Form SSA-131 the total amount the employee earned during the
year. Generally, the amount earned by the employee during the tax year for
purposes of item 6 of Form SSA-131 is the amount reported in box 1 of Form W-2
plus current year deferrals that are vested (employee and employer portions) less
distributions. Do not consider prior-year deferrals that are vesting in the current
year. If there was a plan failure, the box 1 amount in this calculation should be as if
there were no plan failure. Submit the SSA-131 to the nearest SSA office or give it
to the employee.
Example 5—Deferral, immediately vested, and distributions. No vesting of prior
Box 1 = $230 ($200 – $20 + $50)
year deferrals.
Boxes 3 and 5 = $210 ($200 + $10)
Regular wages: $200
Box 11 = $0
Defer, vested: $20
Employer match, vested: $10
Form SSA-131 = $210 ($230 (box 1) – $50 (distribution) + $30 (vested employee
Distribution: $50
and employer deferrals))
Example 6—Deferral, delayed vesting, and distributions. No vesting of prior year
Box 1 = $230 ($200 – $20 + $50)
deferrals.
Boxes 3 and 5 = $180 ($200 – $20)
Regular wages: $200
Box 11 = $50
Defer, not vested: $20
Distribution: $50
Example 7—Deferral, immediately vested, and distributions. Prior-year deferrals
Box 1 = $230 ($200 – $20 + $50)
and employer matches are now vesting.
Boxes 3 and 5 = $315 ($200 + $100 + $15)
Regular wages: $200
Box 11 = $0
Defer, vested: $20
Distribution: $50
Form SSA-131 = $200 ($230 (box 1) – $50 (distribution) + $20 (vested deferral))
Vesting of prior-year deferrals and employer matches: $100 + $15 (earnings on the
$100)
Example 8—Deferral, delayed vesting, and distributions. Prior-year deferrals and
Box 1 = $230 ($200 – $20 + $50)
employer matches are now vesting.
Boxes 3 and 5 = $295 ($200 – $20 + $100 + $15)
Regular wages: $200
Box 11 = $0
Defer, not vested: $20
Distribution: $50
Form SSA-131 = $180 ($230 (box 1) – $50 (distribution))
Vesting of prior-year deferrals and employer matches: $100 + $15 (earnings on the
$100)
See Nonqualified deferred compensation plans.
-29-
General Instructions for Forms W-2 and W-3 (2016)
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