You do not have to complete this item; it is optional. Check this box if none of the checkboxes described next apply to you. If you are correcting Form W-2, enter all 4 digits of the year of the form you are correcting. If you are correcting Form W-2AS, W-2CM, W-2GU, W-2VI, or W-2c, enter all 4 digits of the year you are correcting, and also enter “AS,” “CM,” “GU,” “VI,” or “c” to designate the form you are correcting. For example, entering “2023” and “GU” indicates that you box 11 nonqualified plans are correcting a 2023 Form W-2GU. However, if the address was incorrect on the Form W-2 furnished to the employee, you must do one of the following.
Use this code to report designated Roth contributions under a governmental section 457(b) plan. Do not use this code to report elective deferrals under code G. Use this code to report designated Roth contributions under a section 403(b) plan. Do not use this code to report elective deferrals under code E. Use this code to report designated Roth contributions under a section 401(k) plan.
Specific Instructions for Form W-3c
The author and publisher are not responsible for any errors or omissions, or for any actions taken based on this information. Chances are, you’ll end up contributing to an NQDC plan or a 401(k) plan. These two plans differ significantly in terms of participant eligibility and contribution limits.
What Does 1098-T Box 5 Mean for Your Taxes?
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. For details on statutory employees and common-law employees, see section 1 in Pub.
Do not check this box for contributions made to a nonqualified or section 457(b) plan. The $600 voluntary after-tax contribution may be reported in box 14 (this is optional) but not in box 12. The $2,000 qualified nonelective contribution and the $3,000 nonelective profit-sharing employer contribution are not required to be reported on Form W-2, but may be reported in box 14. The amount of the penalty is based on when you furnish the correct payee statement. This penalty is an additional penalty and is applied in the same manner, and with the same amounts, as in Failure to file correct information returns by the due date . 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.
What Is an Example of a Non-Qualified Compensation Plan?
You must have an employer identification number (EIN). You must report the cost of employer-sponsored health coverage in box 12 using code DD. However, transitional relief applies to certain employers and certain types of plans.
See Box 3—Social security wages for payments to report in this box. If you paid your employee’s share of taxes, see Employee’s social security and Medicare taxes (or railroad retirement taxes, if applicable) paid by employer . Under nonqualified plans or nongovernmental 457(b) plans, deferred amounts that are no longer subject to a substantial risk of forfeiture are taxable even if not distributed. Report these amounts in boxes 3 (up to the social security wage base) and 5. Do not report in box 11 deferrals included in boxes 3 and/or 5 and deferrals for current-year services (such as those with no risk of forfeiture).
Code Y—Deferrals under a section 409A nonqualified deferred compensation plan.
Earned income tax credit (EITC) notice (not applicable to Forms W-2AS, W-2CM, W-2GU, and W-2VI). You may complete and print Copies 1, B, C, 2 (if applicable), and D (if applicable) of Forms W-2, W-2AS, W-2GU, W-2VI, and W-2c on IRS.gov to provide to the respective recipient. An entry made in any one of these copies will automatically populate to the other copies. As before, Copy A cannot be completed online to print and file with the SSA and is posted on IRS.gov for informational purposes only.
Show the total dependent care benefits under a dependent care assistance program (section 129) paid or incurred by you for your employee. Include the fair market value (FMV) of care in a daycare facility provided or sponsored by you for your employee and amounts paid or incurred for dependent care assistance in a section 125 (cafeteria) plan. Report all amounts paid or incurred (regardless of any employee forfeitures), including those in excess of the $5,000 exclusion. Include any amounts over your plan’s exclusion in boxes 1, 3, and 5.
This is one in a continuing series on the 2010 Form W-2, Wage and Tax Statement, which employers must generally furnish to employees no later than January 31, 2011. Forms mailed on the due date are considered furnished if properly addressed. Employers unable to meet that deadline may file a request for extension of time to furnish the forms. Taxation for non-qualified plans involves a split between when the money is earned and when it is paid out. FICA taxes, covering Medicare and Social Security, are deducted when the money is earned. However, federal income tax withholding for non-qualified plans is deferred until the payout, offering potential advantages for employees in lower tax brackets during retirement.
- Show any items that were not included on the first Form W-2 in the appropriate boxes.
- If an employee asks for Form W-2, give them the completed copies within 30 days of the request or within 30 days of the final wage payment, whichever is later.
- The SSA accepts only e-filed reports and the official red-ink versions (or approved substitute versions) of these forms.
- Check this box if you file Form 941 or Form 941-SS.
- The author and publisher are not responsible for any errors or omissions, or for any actions taken based on this information.
- This is because the employee received and had use of those funds during that year.
If you included 100% of the vehicle’s annual lease value in the employee’s income, the employee will not be able to deduct expenses attributable to the business use of an employer-provided vehicle. You must report compensation of $600 or more paid in a calendar year to an H-2A visa agricultural worker for agricultural labor. If the H-2A visa agricultural worker furnishes a valid taxpayer identification number, report these payments in box 1 of Form W-2. If the worker does not furnish a valid taxpayer identification number, report the payments on Form 1099-MISC. If Sam’s employer made the payment after the year of death, the $3,000 would not be subject to social security and Medicare taxes and would not be shown on Form W-2. However, the employer would still file Form 1099-MISC.
- Do not write “corrected” or “amended” on any resubmitted reports.
- 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.
- For federal tax purposes, virtual currency is treated as property.
Prepare and file Forms W-2 either alphabetically by employees’ last names or numerically by employees’ social security numbers. Do not staple or tape Form W-3 to the related Forms W-2 or Forms W-2 to each other. Staple holes or tears interfere with machine reading.
See Election workers and Foreign agricultural workers , later. Box 12 uses codes to clarify the nature of deferred compensation and related deductions. For example, Code EE represents designated Roth contributions under a government 457(b) plan, which are taxed differently from traditional deferrals. Qualified plans, such as 401(k)s and 403(b)s, offer tax-deferred growth on contributions and earnings.
When a taxpayer receives a pension or annuity from one of these plans, and it’s been reported in box 1 of Form W-2, the amount should no longer be included on line 1a of Form 1040. Entered W2 for retiree as in the past year in Lacerte with Line 1 wages equaling Line 11 non-qualified plans. Amount has always been taxable in the past, but for 2022 the Line 11 amount is subtracted from Line 1 so no taxable income. The amount deferred, however, does not come with some of the benefits of qualified deferred compensation plans, such as the ability to take out loans against them or roll over the funds into an IRA. You will be taxed on the compensation when you actually receive it. This should be sometime after you retire, unless you meet the rules for another triggering event that is allowed under the plan, such as a disability.
Keep all of your documents with your 2022 tax return information. Nonqualified deferred pension and annuity income should be reported on Schedule 1 as «Other Income» on line 8t, and flow through to your Form 1040 onto line 8. This blog is for informational purposes only and does not constitute legal, tax, or accounting advice. Please consult with a qualified professional before taking any action based on the information provided in this blog.
If you are reporting prior-year contributions under USERRA, see the TIP above Code D underBox 12—Codes. Do not report special wage payments, such as accumulated sick pay or vacation pay, in box 11. For more information on reporting special wage payments, see Pub. Instead of reporting in box 12 (or box 14), you may choose to provide a separate statement to your employee showing USERRA make-up contributions. The statement must identify the type of plan, the year(s) to which the contributions relate, and the amount contributed for each year.
Effective for tax years 2018 through 2025, the exclusion for qualified moving expense reimbursements applies only to members of the U.S. Armed Forces on active duty who move pursuant to a military order and incident to a permanent change of station. All other employees have only nonqualified moving expenses and expense reimbursements subject to tax and withholding. For plan year 2025, a cafeteria plan may not allow an employee to request salary reduction contributions for a health FSA in excess of $3,300 (as indexed for inflation). Do not send cash, checks, money orders, or other forms of payment with the Forms W-2 and W-3 that you submit to the SSA. Employment tax forms (for example, Form 941 or Form 943), remittances, and Forms 1099 must be sent to the IRS.
