Tax Guides And Forms
Use BSO’s online fill-in forms to create, save, and submit Forms W-2 and W-2c to the SSA electronically. BSO lets you print copies of these forms to file with state or local governments, distribute to your employees, and keep for your records. BSO generates Form W-3 automatically based on your Forms W-2.
Check in the box to determine the kind of payer and kind of employer. Provide the correct employer identification number, employer’s name and address, territorial ID number, contact person and fax number. Then provide the amounts of wages, tips and other compensations, income tax withheld, social security wages, social security tax withheld, Medicare wages and tax withheld, social security tips. There are also sections to input non-qualified plans, deferred compensation, income tax withheld by payer of third party sick pay. Form W-2 must show total wages and other compensation paid ; total wages subject to social security and Medicare taxes; allocated tips ; amounts deducted for income, social security and Medicare taxes; and the total advance EIC payment. In all cases, the tax-exempt organization must give each of its employees Form W-2 by January 31 following the end of the calendar year covered. Check this box if you are a railroad employer correcting Forms W-2 for employees covered under the RRTA.
Box 5 must equal or exceed the sum of boxes 3 and 7. Prepare a second Form W-3c along with a second Form W-2c for each affected employee.
More In Forms And Instructions
Although this tax is included in the box 2 amounts, it must be shown separately here. Complete these boxes to correct Medicare wages and tips and Medicare tax withheld.
You can also use BSO to upload wage files to the SSA, check on the status of previously submitted wage reports, and take advantage of other convenient services for employers and businesses. Visit the SSA’s Employer W-2 Filing Instructions & Information website at SSA.gov/employer for more information about using BSO to save time for your organization. Here you will also find forms and publications used for wage reporting, information about verifying employee social security numbers online, how to reach an SSA employer services representative for your region, and more. Employers are required to have a W-4 form on file for all employees at all times. Form W-4 includes information necessary for determining the amount of an employee’s federal income tax withholding, using marital status, number of dependents, and any additional amounts to be withheld.
- For coverage provided to former employees, the former employees must pay the employee part of social security and Medicare taxes on the taxable cost of group-term life insurance over $50,000 on Form 1040 or 1040-SR.
- You must include in boxes 1, 3, and 5 the cost of group-term life insurance that is more than the cost of $50,000 of coverage, reduced by the amount the employee paid toward the insurance.
- For employees, you must withhold social security and Medicare taxes, but not federal income tax.
- However, you must report the uncollected social security tax with code M and the uncollected Medicare tax with code N in box 12 of Form W-2.
Although not required, you may include the total value of fringe benefits in box 14 . However, if you provided your employee a vehicle, you must include the value of any personal use in boxes 1, 3, and 5 of Form W-2. You must withhold social security and Medicare tax, but you have the option not to withhold federal income tax if you notify the employee and include the value of the benefit in boxes 1, 3, 5, and 14. The SSA has enhanced its secure BSO website to make it easier to register and navigate.
Filing Form W
If you also have to correct forms of employees who are subject to social security and Medicare taxes, complete a separate Form W-3c with the “941/941-SS” box or “944” box checked instead. Show the tips that the employee reported to you even if you did not have enough employee funds to collect the social security tax for the tips. The total of boxes 3 and 7 should not be more than $142,800 .
Include any golden parachute payments in boxes 1, 3, and 5 of Form W-2. Withhold federal income, social security, and Medicare taxes as usual and report them in boxes 2, 4, and 6, respectively. (Use box 14 if railroad retirement taxes apply.) Excess parachute payments are also subject to a 20% excise tax. If the excess payments are considered wages, withhold the 20% excise tax and include it in box 2 as income tax withheld. For definitions and additional information, see Regulations section 1.280G-1 and Rev. Proc.
If the repayment was for a prior year, you must file Form W-2c with the SSA to correct only social security and Medicare wages and taxes, and furnish a copy to the employee. Do not correct “Wages, tips, other compensation” in box 1, or “Federal income tax withheld” in box 2, on Form W-2c. Also do not correct any Additional Medicare Tax withheld on the repaid wages on Form W-2c.
File the “X” return that is appropriate for the return on which the wages or compensation was originally reported (Forms 941-X, 943-X, 944-X, or CT-1X). Correct the social security and Medicare wages and taxes for the period during which the wages or compensation was originally paid. For information on reporting adjustments to Forms 941, 941-SS, 943, 944, or Form CT-1, see section 13 of Pub. 15 , the Instructions for Form CT-1X, or section 9 of Pub. Report the permitted benefit the employee is entitled to receive under the QSEHRA for the calendar year in box 12 using code FF. Although a part of the permitted benefit is a taxable reimbursement, that does not change the amount you report in box 12 with code FF. If an employee who failed to have MEC for one or more months during the year mistakenly received reimbursements for expenses incurred in one of those months, those reimbursements are taxable to the employee.
Armed Forces.Multiple Forms W-2 issued to employee, Multiple forms. Enter the amount previously reported and the corrected amount of income tax withheld on third-party payments of sick pay.
Report differential wage payments in box 1 and any federal income tax withholding in box 2. Differential wage payments made to an individual while on active duty for 30 days or less are subject to income tax withholding, social security, Medicare, and unemployment taxes and are reported in boxes 1, 3, and 5. Armed Forces, Code P—Excludable moving expense reimbursements paid directly to a member of the U.S. An employee’s salary reduction contributions to a SIMPLE retirement account are not subject to federal income tax withholding but are subject to social security, Medicare, and railroad retirement taxes. Do not include an employee’s contribution in box 1, but do include it in boxes 3 and 5. (Use box 14 if railroad retirement taxes apply.) An employee’s total contribution must also be included in box 12 with code D or S.
You must include in boxes 1, 3, and 5 the cost of group-term life insurance that is more than the cost of $50,000 of coverage, reduced by the amount the employee paid toward the insurance. For employees, you must withhold social security and Medicare taxes, but not federal income tax. For coverage provided to former employees, the former employees must pay the employee part of social security and Medicare taxes on the taxable cost of group-term life insurance over $50,000 on Form 1040 or 1040-SR. However, you must report the uncollected social security tax with code M and the uncollected Medicare tax with code N in box 12 of Form W-2. However, any uncollected Additional Medicare Tax (on the cost of group-term life insurance, which, in combination with other wages, is in excess of $200,000) is not reported with code N in box 12.
Report the taxable reimbursement as other compensation in box 1, but not in boxes 3 or 5. The taxable reimbursements are not wages for income, social security, or Medicare tax, so do not withhold these taxes. Report the permitted benefit that you would have reported for the employee as though there was no failure to have MEC. If you discover the lapse in MEC after filing with the SSA, furnish the employee a correction on Form W-2c and file the Form W-2c with the SSA. Employers paying their employees while they are on active duty in the U.S. uniformed services should treat these payments as wages. Differential wage payments made to an individual while on active duty for periods scheduled to exceed 30 days are subject to income tax withholding, but are not subject to social security, Medicare, and unemployment taxes.
Label them “RRTA compensation,” “Tier 1 tax,” “Tier 2 tax,” “Medicare tax,” and “Additional Medicare Tax.” Include tips reported by the employee to the employer in “RRTA compensation.” Income included under section 409A from an NQDC plan will be reported in box 1 and in box 12 using code Z. This income is also subject to an additional tax of 20% that is reported on Form 1040 or 1040-SR. For more information on amounts includible in gross income and reporting requirements, see Notice available at IRS.gov/irb/ _IRB#NOT . Include all taxable fringe benefits in box 1 of Form W-2 as wages, tips, and other compensation and, if applicable, in boxes 3 and 5 as social security and Medicare wages.
On the Form W-3c, enter the correct tax year in box a and/or the correct EIN in box e. Enter zeros in the “Previously reported” boxes, and enter the correct money amounts in the “Correct information” boxes. Enter the total of state/local wages and income tax shown in their corresponding boxes on the Forms W-2 included with this Form W-3.
Each year, employers are required to send a report to employees showing their total wages and deductions, so the employees can include the information on their income tax returns. The reports must also be filed with the Social Security Administration . Nonqualified moving expenses and expense reimbursements are reported in boxes 1, 3, and 5 of Form W-2.
These amounts are subject to federal income tax withholding and social security and Medicare taxes . The U.S. Treasury Department and the CNMI Division of Revenue and Taxation entered into an agreement under 5 U.S.C. 5517 (“5517 agreement”) in December 2006. Federal employers are also required to file quarterly and annual reports with the CNMI Division of Revenue and Taxation. For questions, contact the CNMI Division of Revenue and Taxation.
Report all tips in box 1 along with wages and other compensation. Check the “CT-1” checkbox on Form W-3, box b, “Kind of Payer,” to transmit Forms W-2 for employees with box 1 wages and box 2 tax withholding. Use Form W-2, box 14, to report total RRTA compensation, Tier 1, Tier 2, Medicare , and any Additional Medicare Tax withheld for each employee covered by RRTA tax.