Enter the two-letter what is box 12a abbreviation for the name of the state. The employer’s state ID numbers are assigned by the individual states. The state and local information boxes can be used to report wages and taxes for two states and two localities.
Who is Required to File Form W-2?
However, the SSA still prefers that you do not enter the suffix on Copy A. If you willfully file a fraudulent Form W-2 for payments that you claim you made to another person, that person may be able to sue you for damages. If you are found liable, you may have to pay $5,000 or more in damages. Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) make-up amounts to a pension plan.
Forms
Employers are not prohibited (by the Internal Revenue Code) from charging a fee for the issuance of a duplicate Form W-2. Reimbursements to employees for business expenses must be reported as follows. Form W-2 e-filed with the SSA must contain the employer’s complete EIN and the complete SSN of the employee. Generally, you must furnish Copies B, C, and 2 of Form W-2 to your employees by February 2, 2026. You will meet the “furnish” requirement if the form is properly addressed and mailed on or before the due date.
- The other Form W-2 incorrectly reported social security wages of $30,000.
- Effective for tax years 2018 through 2025, the exclusion for qualified moving expense reimbursements applies only to members of the U.S.
- Be sure the Forms W-2 you provide to employees are clear and legible and comply with the requirements in Pub.
- A state, local, or federal government employer correcting only social security wages and/or social security tips (boxes 3 and/or 7) for an MQGE employee must also complete Medicare wages and tips in box 5.
- If you previously received a letter from the Social Security Administration (SSA) regarding electronic wage report submissions, please note that the issue has been fully resolved.
- Box 12d is a subsection of Box 12 used to report additional codes that don’t fit in Box 12a or 12b.
Instead, send the forms to the appropriate state or local agency and furnish copies of Form W-2c to your employees. The total of Form W-2c box 12 amounts reported with codes A through C, J through R, T through W, Z, DD, and FF through II is not reported on Form W-3c. Enter the total of amounts reported with codes D through H, S, Y, AA, BB, and EE as “Previously reported” and “Correct information” from Forms W-2c. This number is assigned by the individual state where your business is located. However, you may want to complete this item if you use copies of this form for your state returns.
NEC Forms Made Easy: Filing Requirements and Tax Compliance for The Upcoming Tax Season
Finding an accountant to help you navigate through the complexities of regular income tax, AMT, and the nuances of w-2 box 1 can be beneficial. Manage your bookkeeping and file taxes Choosing the best student loan is a big decision. Luckily, youdon’t have to handle the search on your own.
Instructions to Complete Box 12 Codes on W-2
For more information, see For employees covered by RRTA tax above. If you made distributions and are also reporting any deferrals in boxes 3 and/or 5, do not complete box 11. However, do not file Form SSA-131 if this situation applies and the employee was not 61 years old or more during the tax year for which you are filing Form W-2.
Get Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations, for information on reconciling wages and taxes reported on Forms W-2 with amounts reported on Forms 941 or 944. The second option is to file one set of Forms W-2 for wages subject only to Medicare tax and another set for wages subject to both social security and Medicare taxes. Use a separate Form W-3 to transmit each set of Forms W-2. For the Forms W-2 showing wages subject to both social security and Medicare taxes, check “941” (or “944”) in box b of Form W-3 or Form W-3SS. The wages in box 5 of Form W-2 must be equal to or greater than the wages in box 3 of Form W-2. The first option (which the SSA prefers) is to file a single set of Forms W-2 per employee for the entire year, even if only part of the year’s wages are subject to both social security and Medicare taxes.
One reason this part of filling out Form W-2 can be so confusing is that there are so many codes, and it can be difficult to understand where to report income and claim a tax write-off. The completed Form W-2 is then sent to employees in January, and a copy is also filed with the IRS. You can choose to mail your employees copies of their forms and/or give them access to retrieve their forms online. You may use this box to identify separate establishments in your business.
Code HH—Aggregate deferrals under section 83(i) elections as of the close of the calendar year.
Go to IRS.gov/PDS for a list of IRS-designated private delivery services. Always file Form W-3c when submitting one or more Forms W-2c. Box 10—Dependent care benefits (not applicable to Forms W-2AS, W-2CM, W-2GU, and W-2VI). Check this box if you are a federal government entity or instrumentality. Check this box if you file Form 944 (or Formulario 944 (sp), its Spanish-language version), and no other category applies. Check this box if the employee was an “active participant” (for any part of the year) in any of the following.
- Two Forms W-2 were submitted for Taylor Smith under the same EIN for the same tax year.
- You can connect with a licensed CPA or EA who can file your business tax returns.
- If a single Form W-2c does not provide enough blank spaces for corrections, use additional Forms W-2c.
- Check this box if you are a non-governmental tax-exempt 501(c) organization.
Enter the amount previously reported and the corrected amount of income tax withheld on third-party payments of sick pay. Although this tax is included in the box 2 amounts, it must be shown separately here. 15 (Circular E) and the Instructions for Form CT-1X for more information. If you are making corrections to a previously filed Schedule H (Form 1040), see Pub. If an employee repaid you for wages received in a prior year, also see Repayments . Use these boxes to report state and local income tax information.
Employers can enter up to 4 different codes, depending on what information applies to the employee. For example, more details on uncollected tax amounts, deferrals, and IRA contributions. All employers that pay wages to their employees, even if the employee is a relative, are required to complete and file Form W-2 with the Social Security Agency (SSA) each year. You must use a separate Form W-3c for each type of Form W-2 (Forms W-2, W-2AS, W-2CM, W-2GU, W-2VI, or W-2c) being corrected. You must also use a separate Form W-3c for each kind of payer/employer combination in box c.
Boxes 15 through 20—State and local income tax information (not applicable to Forms W-2AS, W-2CM, W-2GU, or W-2VI). Do not check this box for contributions made to a nonqualified or section 457(b) plan. If the employee later provides proof of MEC establishing eligibility for a lesser value permitted benefit, report this lesser value permitted benefit on Form W-2. Report the amount of payments and reimbursements the employee is entitled to receive under the QSEHRA for the calendar year, not the amount the employee actually receives. For example, a QSEHRA provides a permitted benefit of $3,000. If the employee receives reimbursements of $2,000, report a permitted benefit of $3,000 in box 12 with code FF.
Code D refers to elective deferrals to a 401(k) retirement plan. Contributions to a traditional 401(k) are made pre-tax, lowering taxable income and reducing overall tax liability. The IRS requires employees to report all tips to their employer. Keeping detailed records of tips received is essential for simplifying the reporting process.
You will need to fill out box 12 if you offer any benefits detailed in the box 12 W-2 codes to your employees or need to report employee incomes based on the stipulations contained in those codes. Generally, tax returns and return information are confidential, as required by section 6103. However, section 6103 allows or requires the Internal Revenue Service to disclose or give the information shown on your return to others as described in the Code. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. If your only changes to the Forms W-2c and W-3c are to the state and local data, do not send either Copy A of Form W-2c or Form W-3c to the SSA.