General Instructions for Forms W-2 and W-3 (2022) | Internal Revenue Service

If you are required to e-file Forms W-2 or want to take advantage of the benefits of e-filing, see E-filing. only in very limited situations will you not have to file Form W-2. This may occur if you were not required to withhold any income tax, sociable security system tax, or Medicare tax and you paid the employee less than $ 600, such as for certain election workers and certain extraneous agricultural workers. See election workers and Foreign agricultural workers, later. You paid $ 600 or more in wages even if you did not withhold any income, social security, or Medicare tax. You would have had to withhold income tax if the employee had claimed no more than one withhold allowance ( for 2019 or earlier Forms W-4 ) or had not claimed exemption from withholding on Form W-4 ; or

You withheld any income, social security, or Medicare tax from wages careless of the sum of wages ; or complete and file Form W-2 for each employee for whom any of the following applies ( even if the employee is related to you ). You must file Form ( s ) W-2 if you have one or more employees to whom you made payments ( including noncash payments ) for the employees ’ services in your trade or business during 2022. even employers with only one family employee must file Form W-3 to transmit Copy A of Form W-2. On Form W-3, check the “ Hshld. emp. ” checkbox in corner b. For more information, see Schedule H ( Form 1040 ), Household Employment Taxes, and its separate instructions. You must have an employer identification act ( EIN ). See Box b—Employer identification count ( EIN ). Anyone required to file Form W-2 must file Form W-3 to transmit Copy A of Forms W-2. Make a copy of Form W-3 ; keep it and Copy D ( For Employer ) of Forms W-2 with your records for 4 years. Be certain to use Form W-3 for the correct year. If you are filing Forms W-2 electronically, besides see E-filing. . manipulation of a report agent or other third-party payroll service supplier does not relieve an employer of the duty to ensure that Forms W-2 are furnished to employees and that Forms W-2 and W-3 are filed with the SSA, correctly and on clock time. See Penalties for more information.. It is authorized to sign by an agency agreement ( whether oral, written, or implied ) that is valid under submit law ; and A vector or transmitter ( including a service agency, reporting agent, paying agent, or disbursing agent ) may sign Form W-3 ( or use its PIN to e-file ) for the employer or payer only if the sender satisfies both of the comply. Be sure that the payer ‘s name and EIN on Forms W-2 and W-3 are the lapp as those used on the Form 941, Employer ‘s QUARTERLY Federal Tax Return ; Form 943, Employer ‘s Annual Federal Tax Return for Agricultural Employees ; Form 944, Employer ’ s ANNUAL Federal Tax Return ; Form CT-1, Employer ‘s Annual Railroad Retirement Tax Return ; or Schedule H ( Form 1040 ) filed by or for the payer. . even if you request and are granted an elongation of time to file Forms W-2, you must still furnish Forms W-2 to your employees by January 31, 2023. But see Extension of time to furnish Forms W-2 to employees .. You may request only one extension of fourth dimension to file Form W-2 with the SSA by submitting a accomplished application on Form 8809, Application for Extension of Time To File Information Returns. When completing the form 8809, indicate that at least one of the criteria on the mannequin and instructions for granting an extension applies. You must sign the application under penalties of perjury. Send the application to the address shown on form 8809. You must request the reference before the due date of Forms W-2. If the IRS grants your request for elongation, you will have an extra 30 days to file. The IRS will grant extensions to file Forms W-2 merely in limited cases for extraordinary circumstances or calamity, such as a natural calamity or ardor destroying the books and records needed for filing the forms. No extra elongation of fourth dimension to file will be allowed. See shape 8809 for details. mail or electronically file Copy A of Form ( s ) W-2 and Form W-3 with the SSA by January 31, 2023. You may owe a penalty for each Form W-2 that you file belated. See Penalties. If you terminate your commercial enterprise, see Terminating a clientele. . 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… If you use “ Certified Mail ” to file, change the ZIP code to “ 18769-0002. ” If you use an IRS-approved secret rescue service, add “ Attn : W-2 process, 1150 E. Mountain Dr. ” to the address and change the ZIP code to “ 18702-7997. ” Go to IRS.gov/PDS for a tilt of IRS-approved private delivery services.. Send Copy 1 of Form W-2, if required, to your state, city, or local tax department. For more information concerning Copy 1 ( including how to complete boxes 15 through 20 ), contact your state, city, or local tax department. 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 associate Forms W-2 or Forms W-2 to each other. These forms are car understand. raw material holes or tears interfere with machine reading. besides do not fold Forms W-2 and W-3. Send the forms to the SSA in a flat mailing. If you file more than one type of use tax human body, group Forms W-2 of the lapp type with a separate Form W-3 for each type, and send them in discriminate groups. See the specific instructions for Box b—Kind of Payer and Box b—Kind of Employer in Specific Instructions for Form W-3. Keep for 4 years any employee copies of Forms W-2 that you tried to but could not deliver. however, if the undelivered Form W-2 can be produced electronically through April 15th of the fourth year after the year at publish, you do not need to keep undeliverable employee copies. Do not send undeliverable employee copies of Forms W-2 to the Social Security Administration ( SSA ). . Requests for an extension of prison term to furnish Forms W-2 to employees are not automatically granted. If approved, an elongation will generally be granted for no more than 15 days from the due date, unless the motivation for up to a entire of 30 days is intelligibly shown. . Fax your letter on or before the due date for furnishing Forms W-2 to employees. It must include : You may request an extension of time to furnish Forms W-2 to employees by faxing a letter to : Forms W-2 that include logos, slogans, and advertisements ( including advertisements for tax formulation software ) may be considered as fishy or change Forms W-2 ( besides known as “ questionable Forms W-2 ” ). An employee may not recognize the importance of the employee imitate for tax report purposes due to the use of logo, slogans, and advertisements. consequently, the IRS has determined that logo, slogans, and advertising will not be allowed on Forms W-3, Copy A of Forms W-2, or any employee copies reporting wages paid. limited exceptions on this prohibition exist with respect to employee copies. See Pub. 1141 for more information. You may furnish Forms W-2 to employees on IRS official forms or on acceptable substitute forms. See stand-in forms. Be surely the Forms W-2 you provide to employees are gain and legible and comply with the requirements in Pub. 1141. If use ends before December 31, 2022, you may furnish copies to the employee at any meter after employment ends, but no late than January 31, 2023. If an employee asks for Form W-2, give him or her the completed copies within 30 days of the request or within 30 days of the final examination wage payment, whichever is by and by. however, if you terminate your business, see Terminating a occupation. generally, you must furnish Copies B, C, and 2 of Form W-2 to your employees by January 31, 2023. You will meet the “ furnish ” prerequisite if the shape is by rights addressed and mailed on or before the due date. . Form W-2 e-filed with the SSA must contain the employer ’ s complete EIN and the complete SSN of the employee. Do not truncate EINs or SSNs on Copy A.. The IRS uses SSNs to check the payments that you report against the amounts shown on employees ‘ tax returns. The SSA uses SSNs to record employees ‘ earnings for future social security system and Medicare benefits. When you prepare form W-2, be certain to show the correct SSN for each employee. You may now truncate the employee ’ mho SSN on employee copies of Forms W-2. Do not truncate an employee ’ randomness SSN on Copy A of Forms W-2. Go to Social security numbers above for more information. besides see Regulations section 31.6051-1 ( a ) ( 1 ) ( one ) ( B ) and 31.6051-2 ( a ). For information about verifying SSNs, see incision 4 of Pub. 15 ( Circular E ) or visit the SSA ‘s Employer W-2 Filing Instructions & Information web site at SSA.gov/employer. . An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN from the Social Security Administration.. Do not accept an IRS individual taxpayer identification number ( ITIN ) in place of an SSN for employee designation or for Form W-2 report. An ITIN is available only to resident and nonresident aliens who are not eligible for U.S. employment and need identification for other tax purposes. You can identify an ITIN because it is a 9-digit issue formatted like an SSN beginning with the act “ 9 ” and with a number in one of the following ranges in the fourthly and fifth digits : 50–65, 70–88, 90–92, and 94–99 ( for exercise, 9NN-70-NNNN ). Do not car populate an ITIN into box a, Employee ‘s social security count, on Form W-2. See section 4 of Pub. 15 ( Circular E ). Employers use an employer designation total ( EIN ) ( XX-XXXXXXX ). Employees use a sociable security number ( SSN ) ( XXX-XX-XXXX ). When you list a act, separate the 9-digits by rights to show the kind of total .

Special Reporting Situations for Form W-2

Adoption benefits.
Amounts paid or expenses incurred by an employer for qualified borrowing expenses under an borrowing aid broadcast are not discipline to federal income tax withhold and are not reportable in box 1. however, these amounts ( including adoption benefits paid from a section 125 ( cafeteria ) design, but not including adoption benefits forfeited from a cafeteria design ) are topic to social security, Medicare, and railroad retirement taxes and must be reported in boxes 3 and 5. ( Use box 14 if railroad retirement taxes apply. ) besides, the total come, including any total in excess of the $ 14,890 excommunication, must be reported in box 12 with code T. For more information on reporting adoption benefits in box 12, see Code T—Adoption benefits, former .
For more information on borrowing benefits, see Notice 97-9, 1997-1 C.B. 365, which is on foliate 35 of Internal Revenue Bulletin 1997-2 at IRS.gov/pub/irs-irbs/irb97-02.pdf. Advise your employees to see the Instructions for Form 8839, Qualified Adoption Expenses .
Agent reporting.
An agent who has an approved form 2678, Employer/Payer Appointment of Agent, should enter the follow in corner hundred of Form W-2 .

(Name of agent)
Agent for (name of employer)
Address of agent

Each Form W-2 should reflect the EIN of the agent in box bacillus. An agent files one Form W-3 for all of the Forms W-2 and enters its own information in boxes vitamin e, f, and gram of Form W-3 as it appears on the agent ‘s refer employment tax returns ( for case, Form 941 ). Enter the client-employer ‘s EIN in box h of Form W-3 if the Forms W-2 relate to only one employer ( other than the agentive role ) ; if not, leave box h blank .
If the agent ( a ) is acting as an agent for two or more employers or is an employer and is acting as an agent for another employer, and ( boron ) pays social security wages to an individual on behalf of more than one employer, the agentive role should file classify Forms W-2 for the moved employee reflecting the wages paid by each employer .
See Rev. Proc. 2013-39, 2013-52 I.R.B. 830, available at IRS.gov/irb/2013-52_IRB # RP-2013-39 and the shape 2678 instructions for procedures to be followed in applying to be an agent .

. This is an Image: taxtip.gif Generally, an agent is not responsible for refunding excess social security or railroad retirement ( RRTA ) tax withhold from employees. If an employee worked for more than one employer during 2022 and had more than $ 9,114.00 in social security and/or Tier 1 RRTA tax withhold, he or she should claim the excess on the appropriate line of form 1040, 1040-SR, or 1040-NR. If an employee had more than $ 5,350.80 in Tier 2 RRTA tax withhold from more than one employer, the employee should claim a refund on Form 843, Claim for Refund and Request for Abatement..

Archer MSA.
An employer ‘s contribution to an employee ‘s Archer MSA is not subject to federal income tax withholding or social security, Medicare, or railroad retirement taxes if it is fair to believe at the time of the payment that the contribution will be excludable from the employee ‘s income. however, if it is not reasonable to believe at the prison term of requital that the contribution will be excludable from the employee ‘s income, employer contributions are capable to income tax withholding tax and social security and Medicare taxes ( or railroad retirement taxes, if applicable ) and must be reported in boxes 1, 3, and 5. ( Use box 14 if railroad retirement taxes apply. )
You must report all employer contributions to an Archer MSA in corner 12 of Form W-2 with code R. Employer contributions to an Archer MSA that are not excludable from the income of the employee must besides be reported in boxes 1, 3, and 5 ( box 14 if railroad retirement taxes enforce ) .
An employee ‘s contributions to an Archer MSA are includible in income as wages and are subject to federal income tax withholding tax and social security and Medicare taxes ( or railroad retirement taxes, if applicable ). employee contributions are deductible, within limits, on the employee ‘s human body 1040 or 1040-SR .
For more information, see Pub. 969, Health Savings Accounts and other Tax-Favored Health Plans, and Notice 96-53, which is found on page 5 of Internal Revenue Bulletin 1996-51 at IRS.gov/pub/irs-irbs/irb96-51.pdf .
Clergy and religious workers.
For certain members of the clergy and religious workers who are not subject to social security and Medicare taxes as employees, boxes 3 and 5 of Form W-2 should be left blank. You may include a minister ‘s parsonage and/or utilities allowance in box 14. For information on the rules that apply to ministers and certain other religious workers, see Pub. 517, Social Security and other Information for Members of the Clergy and religious Workers and section 4 in Pub. 15-A .
Deceased employee’s wages.
If an employee dies during the year, you must report the accrue wages, vacation pay, and early compensation paid after the date of death. besides report wages that were available to the employee while he or she was active, regardless of whether they were actually in the possession of the employee, arsenic well as any early regular engage payment, tied if you may have to reissue the requital in the mention of the estate or beneficiary .
If you made the requital after the employee ‘s end but in the lapp class the employee died, you must withhold sociable security and Medicare taxes on the payment and report the payment on the employee ‘s Form W-2 only as social security and Medicare wages to ensure proper social security and Medicare credit is received. On the employee ‘s Form W-2, show the payment as social security wages ( box 3 ) and Medicare wages and tips ( box 5 ) and the social security and Medicare taxes withheld in boxes 4 and 6. Do not show the requital in box 1 .
If you made the payment after the year of death, do not report it on Form W-2, and do not withhold social security and Medicare taxes .
Whether the payment is made in the year of death or after the year of death, you must besides report it in box 3 of Form 1099-MISC, many-sided Information, for the requital to the estate of the realm or beneficiary. Use the name and taxpayer designation number ( TIN ) of the requital recipient on Form 1099-MISC. however, if the payment is a reissuance of wages that were constructively received by the deceased individual while he or she was placid alive, do not report it on Form 1099-MISC .
Example.
Before Employee A ‘s death on June 15, 2022, A was employed by Employer X and received $ 10,000 in wages on which federal income tax of $ 1,500 was withheld. When A died, X owed A $ 2,000 in wages and $ 1,000 in accrue vacation pay. The sum of $ 3,000 ( less the social security and Medicare taxes withheld ) was paid to A ‘s estate of the realm on July 20, 2022. Because ten made the payment during the year of death, X must withhold social security and Medicare taxes on the $ 3,000 payment and must complete Form W-2 as follows .

  • Box a— Employee A ‘s SSN
  • Box e— Employee A ‘s name
  • Box f— Employee A ‘s address
  • Box 1— 10000.00 ( does not include the $ 3,000 accrued wages and vacation pay )
  • Box 2— 1500.00
  • Box 3— 13000.00 ( includes the $ 3,000 accrued wages and vacation pay )
  • Box 4— 806.00 ( 6.2 % of the measure in box 3 )
  • Box 5— 13000.00 ( includes the $ 3,000 accrued wages and vacation pay )
  • Box 6— 188.50 ( 1.45 % of the amount in box 5 )

. This is an Image: caution.gif Employer X must besides complete Form 1099-MISC as follows .

 

  • Boxes for recipient ’ second name, address, and TIN—the estate of the realm ‘s or benefactive role ’ second name, address, and TIN .
  • Box 3 : 3000.00 ( even though amounts were withheld for social security and Medicare taxes, the gross come is reported here. )

.

If Employer X made the payment after the year of death, the $ 3,000 would not be submit to social security and Medicare taxes and would not be shown on Form W-2. however, the employer would still file Form 1099-MISC .
Designated Roth contributions.
Under section 402A, a player in a incision 401 ( kilobyte ) plan, under a 403 ( b-complex vitamin ) wage reduction agreement, or in a governmental 457 ( barn ) plan that includes a qualify Roth contribution course of study, may elect to make delegate Roth contributions to the plan or program in stead of elective deferrals. Designated Roth contributions are capable to federal income tax withhold and social security and Medicare taxes ( and railroad retirement taxes, if applicable ) and must be reported in boxes 1, 3, and 5. ( Use box 14 if dragoon retirement taxes practice. )

section 402A requires branch report of the annually designated Roth contributions. Designated Roth contributions to 401 ( kelvin ) plans will be reported using code AA in box 12 ; designated Roth contributions under 403 ( b ) wage reduction agreements will be reported using code BB in corner 12 ; and designated Roth contributions under a governmental section 457 ( b ) design will be reported using code EE in box 12. For reporting instructions, see the box 12 instructions for Code AA—Designated Roth contributions under a section 401 ( kelvin ) plan, Code BB—Designated Roth contributions under a incision 403 ( barn ) plan, and Code EE—Designated Roth contributions under a governmental section 457 ( bacillus ) design .
Educational assistance programs.
Employer-provided educational aid up to a utmost of $ 5,250 is excludable from an employee ‘s wages only if aid is provided under an educational aid program under section 127. See Pub. 970, Tax Benefits for Education, and section 2 of Pub. 15-B for more information. besides see Box 1—Wages, tips, early compensation .
Election workers.
report on Form W-2 payments of $ 600 or more to election workers for services performed in country, county, and municipal elections. File Form W-2 for payments of less than $ 600 paid to election workers if social security and Medicare taxes were withheld under a section 218 ( Social Security Act ) agreement. Do not report election actor payments on Form 1099-MISC .
If the election proletarian is employed in another capacity with the same government entity, see Rev. Rul. 2000-6, which is on foliate 512 of Internal Revenue Bulletin 2000-6 at IRS.gov/pub/irs-irbs/irb00-06.pdf .
Employee business expense reimbursements.
Reimbursements to employees for commercial enterprise expenses must be reported as follows .

  • by and large, payments made under an accountable plan are excluded from the employee ‘s megascopic income and are not reported on Form W-2. however, if you pay a per diem or mileage valuation reserve and the come paid for realize miles or days traveled exceeds the amount treated as substantiated under IRS rules, you must report as wages on Form W-2 the total in surfeit of the amount treated as substantiated. The surfeit total is subject to income tax withholding and social security and Medicare taxes ( or railroad retirement taxes, if applicable ). Report the come treated as substantiated ( that is, the nontaxable share ) in box 12 using code L. See the box 12 instructions for Code L—Substantiated employee business expense reimbursements. ( Use box 14 if railroad retirement taxes use. )
  • Payments made under a nonaccountable plan are reported as wages on Form W-2 and are submit to federal income tax withholding and social security and Medicare taxes ( or railroad retirement taxes, if applicable ). ( Use box 14 if railway retirement taxes give. )

For more information on accountable plans, nonaccountable plans, amounts treated as substantiated under a per diem or mileage allowance, the standard mileage rate, the per diem confirmation method, and the high-low validation method acting, see Pub. 463, Travel, Gift, and Car Expenses ; and section 5 of Pub. 15 ( Circular E ) .
Employee’s social security and Medicare taxes (or railroad retirement taxes, if applicable) paid by employer.
If you paid your employee ‘s share of social security and Medicare taxes quite than deducting them from the employee ‘s wages, you must include these payments as wages subject to federal ( or American Samoa, CNMI, Guam, or U.S. Virgin Islands ) income tax withholding and social security, Medicare, and federal unemployment ( FUTA ) taxes. If you paid your employee ‘s share of railroad track retirement taxes, you must include these amounts as compensation subjugate to railroad retirement taxes. The measure to include as wages and/or recompense is determined by using the formula contained in the discussion of Employee ‘s part of Taxes Paid by Employer in department 7 of Pub. 15-A and in Rev. Proc. 83-43, 1983-24 I.R.B. 60 .

. This is an Image: caution.gif This does not apply to household and agrarian employers. If you pay a family or agrarian employee ‘s social security and Medicare taxes, you must include these payments in the employee ‘s wages for income tax withholding tax purposes. however, the engage increase due to the tax payments is not subject to social security, Medicare, or FUTA taxes. For information on completing Forms W-2 and W-3 in this position, see the Instructions for Schedule H ( Form 1040 ) and section 4 of Pub. 51 ( Circular A ), Agricultural Employer ’ s Tax Guide..

Federal employers in the CNMI.
The U.S. Treasury Department and the CNMI Division of Revenue and Taxation entered into an agreement under 5 U.S.C. section 5517 ( “ 5517 agreement ” ) in December 2006. Under this agreement, all union employers ( including the Department of Defense ) are required to withhold CNMI income taxes, quite than federal income taxes, and deposit the CNMI taxes with the CNMI Treasury for employees who are subject to CNMI taxes and whose regular place of federal use is in the CNMI. Federal employers are besides 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 .

federal employers may use Form W-2 ( preferably than Forms W-2CM or OS-3710 ) to report income taxes withheld and paid to CNMI, equally well as to report social security and Medicare taxes. Use the department of state boxes 15, 16, and 17 for CNMI income tax report. See the instructions for boxes 15, 16, and 17 under Boxes 15 through 20—State and local anesthetic income tax information, later. This rule applies lone to income tax report. union employers should withhold and report sociable security and Medicare taxes for these employees in the same way as for other federal employees. For more information, go to IRS.gov/Individuals/International-Taxpayers/Special-Withholding-Rules-for-US-Federal-Agency-Employers-With-Employees-in-CNMI-or-Puerto-Rico .
Foreign agricultural workers.
You must report recompense of $ 600 or more paid in a calendar year to an H-2A visa agricultural actor for agrarian british labour party. If the H-2A visa agrarian actor furnishes a valid taxpayer recognition issue, report these payments in box 1 of Form W-2. If the worker does not furnish a valid taxpayer recognition number, report the payments on Form 1099-MISC. See class 1099-MISC under .

On Form W-2, no measure should be reported in box 3 or 5. In most cases, you do not need to withhold federal income tax from recompense paid to H-2A visa agricultural workers. Employers should withhold federal income tax lone if the H-2A visa agrarian actor and the employer match to withhold. The H-2A visa agricultural worker must provide a completed Form W-4. If the employer withholds income tax, the employer must report the tax withhold in box 2 of Form W-2 and on trace 8 of Form 943. See Pub. 51 ( Circular A ) .

Form 1099-MISC.

If the H-2A visa agricultural worker fails to furnish a taxpayer identification issue to the employer, and the sum annual payments made to the H-2A visa agricultural worker are $ 600 or more, the employer must begin accompaniment withholding on the payments made until the H-2A visa agricultural worker furnishes a valid taxpayer identification number. Employers must report the recompense paid and any backup withholding on Forms 1099-MISC and Form 945, Annual Return of Withheld Federal Income Tax. See the current Instructions for Forms 1099-MISC and 1099-NEC and the current Instructions for Form 945 .
For more information, go to IRS.gov/H2A .
Fringe benefits.
Include all taxable bang 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. Although not required, you may include the sum prize of fringe benefits in box 14 ( or on a disjoined instruction ). however, if you provided your employee a vehicle, you must include the respect 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 measure of the profit in boxes 1, 3, 5, and 14. See Pub. 15-B for more information .

. This is an Image: caution.gif populace Law 115-97, section 11045, does not permit employees to deduct unreimbursed employee occupation expenses for tax years 2018 through 2025. If you included 100 % of the fomite ’ s annual rent prize in the employee ’ s income, the employee will not be able to deduct expenses attributable to the business use of an employer-provided vehicle. See Pub. 15-B..

Golden parachute payments (not applicable to Forms W-2AS, W-2CM, W-2GU, or W-2VI).
Include any fortunate chute payments in boxes 1, 3, and 5 of Form W-2. Withhold federal income, social security, and Medicare taxes ( or railroad retirement taxes, if applicable ) as common and report them in boxes 2, 4, and 6, respectively. ( Use box 14 if railroad retirement taxes enforce. ) Excess parachute payments are besides discipline to a 20 % excise tax. If the excess payments are considered wages, withhold the 20 % strike tax and include it in box 2 as income tax withhold. besides report the excise tax in box 12 with code K. For definitions and extra information, see Regulations section 1.280G-1 and Rev. Proc. 2003-68, 2003-34 I.R.B. 398, available at IRS.gov/irb/2003-34_IRB # RP-2003-68 .
Government employers.
Federal, state, and local governmental agencies have two options for reporting their employees ‘ wages that are discipline to only Medicare tax for separate of the year and both social security and Medicare taxes for separate of the class .
The first option ( which the SSA prefers ) is to file a individual fix of Forms W-2 per employee for the entire year, even if only separate of the class ‘s wages are subject to both social security and Medicare taxes. Check “ 941 ” ( or “ 944 ” ) in box boron of Form W-3 or check “ 941-SS ” in box b of 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 second option is to file one set of Forms W-2 for wages subject merely 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 Medicare-only Forms W-2, check “ Medicare govt. emp. ” in box b of Form W-3. For the Forms W-2 picture wages subject to both social security and Medicare taxes, check “ 941 ” ( or “ 944 ” ) in box b of Form W-3 or check “ 941-SS ” in box boron of 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 .
Group-term life insurance.
You must include in boxes 1, 3, and 5 ( or 14, if railroad retirement taxes enforce ) the cost of group-term animation insurance that is more than the cost of $ 50,000 of coverage, reduced by the amount the employee paid toward the insurance. Use board 2-2 in Pub. 15-B to determine the cost of the indemnity. besides show the total in corner 12 with code C. For employees, you must withhold social security and Medicare taxes, but not union income tax. For coverage provided to early employees, the former employees must pay the employee part of social security and Medicare taxes ( or railroad retirement taxes, if applicable ) on the taxable cost of group-term life policy over $ 50,000 on form 1040 or 1040-SR. You are not required to collect those taxes. however, you must report the uncollected social security tax ( or railroad retirement taxes, if applicable ) with code M and the uncollected Medicare tax ( or RRTA Medicare tax, if applicable ) with code N in box 12 of Form W-2. however, any uncollected Additional Medicare Tax ( on the monetary value 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 .
Health flexible spending arrangement (FSA).
For design year 2022, a cafeteria plan may not allow an employee to request wage decrease contributions for a health FSA in overindulgence of $ 2,850 ( as index for inflation ) .
If a cafeteria plan timely complies with the written plan requirement limiting health FSA wage reduction contributions, but one or more employees are mistakenly allowed to elect a wage decrease of more than $ 2,850 for the plan class, the cafeteria design will continue to be a section 125 cafeteria plan for the plan year if :

  • The terms of the plan apply uniformly to all participants ,
  • The erroneousness results from a reasonable mistake by the employer ( or the employer ’ sulfur agent ) and is not due to willful fail by the employer ( or the employer ’ sulfur agent ), and
  • wage reduction contributions in excess of $ 2,850 are paid to the employee and reported as wages for income tax withhold and employment tax purposes on the employee ’ south Form W-2 ( or Form W-2c ) for the employee ’ randomness taxable year in which, or with which, ends the cafeteria plan year in which the correction is made .

. This is an Image: caution.gif The wage reduction contribution limit of $ 2,850 does not include any sum ( up to $ 570 ) carried over from a previous year..

For more information, see Notice 2013-71, 2013-47 I.R.B. 532, available at IRS.gov/irb/2013-47_IRB # NOT-2013-71 .
Health savings account (HSA).
An employer ‘s contribution ( including an employee ‘s contributions through a cafeteria design ) to an employee ‘s HSA is not subject to federal income tax withhold or sociable security, Medicare, or railroad retirement taxes ( or FUTA tax ) if it is reasonable to believe at the time of the payment that the contribution will be excludable from the employee ‘s income. however, if it is not reasonable to believe at the time of requital that the contribution will be excludable from the employee ‘s income, employer contributions are subject to federal income tax withhold, social security and Medicare taxes ( or railroad retirement taxes, if applicable ), and FUTA tax, and must be reported in boxes 1, 3, and 5 ( consumption box 14 if dragoon retirement taxes apply ) ; and on Form 940, Employer ‘s Annual Federal Unemployment ( FUTA ) Tax Return .
You must report all employer contributions ( including an employee ‘s contributions through a cafeteria plan ) to an HSA in box 12 of Form W-2 with code W. Employer contributions to an HSA that are not excludable from the income of the employee must besides be reported in boxes 1, 3, and 5. ( Use box 14 if railroad retirement taxes use. )
An employee ‘s contributions to an HSA ( unless made through a cafeteria plan ) are includible in income as wages and are subjugate to federal income tax withholding and social security and Medicare taxes ( or railroad retirement taxes, if applicable ). employee contributions are deductible, within limits, on the employee ‘s shape 1040 or 1040-SR. For more information about HSAs, see Notice 2004-2, Notice 2004-50, and Notice 2008-52. Notice 2004-2, 2004-2 I.R.B. 269, is available at IRS.gov/irb/2004-02_IRB # NOT-2004-2. Notice 2004-50, 2004-33 I.R.B. 196, is available at IRS.gov/irb/2004-33_IRB # NOT-2004-50. Notice 2008-52, 2008-25 I.R.B. 1166, is available at IRS.gov/irb/2008-25_IRB # NOT-2008-52. besides see shape 8889, Health Savings Accounts ( HSAs ), and Pub. 969 .
Lost Form W-2—Reissued statement.
If an employee loses a Form W-2, write “ REISSUED STATEMENT ” on the raw copy and furnish it to the employee. You do not have to add “ REISSUED STATEMENT ” on Forms W-2 provided to employees electronically. Do not send Copy A of the reissue Form W-2 to the SSA. Employers are not prohibited ( by the Internal Revenue Code ) from charging a fee for the issue of a duplicate Form W-2 .
Military differential pay.
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 withhold, but are not subject to social security, Medicare, and unemployment taxes. Report differential gear wage payments in corner 1 and any federal income tax withhold 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. See Rev. Rul. 2009-11, 2009-18 I.R.B. 896, available at IRS.gov/irb/2009-18_IRB # RR-2009-11 .
Moving expenses.
Effective for tax years 2018 through 2025, the excommunication for qualify 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 lone nonqualified moving expenses and expense reimbursements subject to tax and withholding .
Report qualified moving expenses for members of the Armed Forces as follows .

  • Qualified moving expenses that an employer paid to a third base party on behalf of the employee ( for exercise, to a moving company ), and services that an employer furnished in kind to an employee, are not reported on Form W-2 .
  • Qualified moving expense reimbursements paid directly to an employee by an employer are reported only in box 12 of Form W-2 with code P .

Nonqualified move expenses and expense reimbursements are reported in boxes 1, 3, and 5 ( use box 14 if railway retirement taxes apply ) of Form W-2. These amounts are subject to federal income tax withholding and social security and Medicare taxes ( or railroad retirement taxes, if applicable ) .
Nonqualified deferred compensation plans.
section 409A provides that all amounts deferred under a nonqualified postpone recompense ( NQDC ) plan for all tax years are presently includible in megascopic income to the extent not subject to a substantial hazard of forfeit and not previously included in megascopic income, unless sealed requirements are met. Generally, section 409A is effective with deference to amounts deferred in tax years beginning after December 31, 2004, but deferrals made before that class may be subject to department 409A under some circumstances .

It is not necessary to show amounts deferred during the year under an NQDC plan subject to section 409A. If you report section 409A deferrals, show the amount in box 12 using code Y. For more information, see Notice 2008-115, 2008-52 I.R.B. 1367, available at IRS.gov/irb/2008-52_IRB # NOT-2008-115 .

Income included under section 409A from an NQDC design will be reported in box 1 and in box 12 using code Z. This income is besides subject to an extra tax of 20 % that is reported on form 1040 or 1040-SR. For more information on amounts includible in gross income and report requirements, see Notice 2008-115, available at IRS.gov/irb/2008-52_IRB # NOT-2008-115. For information on correcting failures to comply with section 409A and refer report, see Notice 2008-113, 2008-51 I.R.B. 1305, available at IRS.gov/irb/2008-51_IRB # NOT-2008-113 ; Notice 2010-6, 2010-3 I.R.B. 275, available at IRS.gov/irb/2010-03_IRB # NOT-2010-6 ; and Notice 2010-80, 2010-51 I.R.B. 853, available at IRS.gov/irb/2010-51_IRB # NOT-2010-80 .

See the Nonqualified Deferred Compensation Reporting Example Chart .
Qualified equity grants under section 83(i).
Report the sum includible in gross income from qualify equity grants under segment 83 ( one ) ( 1 ) ( A ) for the calendar year in box 12 using code GG. This come is wages for box 1 and you must withhold income tax under section 3401 ( iodine ) at the pace and manner prescribed in department 3401 ( thymine ). You must withhold at the maximum pace of tax without regard to the employee ’ south Form W-4. Social security system and Medicare taxation of the deferral stock is not affected by these rules. See Notice 2018-97, 2018-52 I.R.B. 1062, available at IRS.gov/irb/2018-52_IRB # NOT-2018-97 .
Qualified small employer health reimbursement arrangement.
Use box 12, code FF, to report the total sum of permit benefits under a restricted belittled employer health reimbursement placement ( QSEHRA ). QSEHRAs allow eligible employers to pay or reimburse checkup caution expenses of eligible employees after the employees provide proof of coverage. The utmost reimbursement for an eligible employee under a QSEHRA for 2022 is $ 5,450 ( $ 11,050 if it besides provides reimbursements for syndicate members ). For more information about QSEHRAs, see Notice 2017-67, 2017-47 I.R.B. 517, available at IRS.gov/irb/2017-47_IRB # NOT-2017-67 and Pub. 15-B under Accident and Health Benefits. For information on employer report requirements, see Code FF—Permitted benefits under a qualify modest employer health reimbursement, subsequently .
Railroad employers (not applicable to Forms W-2AS, W-2CM, W-2GU, or W-2VI).
Railroad employers must file Form W-2 to report their employees ‘ wages and income tax withholding tax in boxes 1 and 2. You must file a separate Form W-3 to transmit the Forms W-2 if you have employees covered under the Federal Insurance Contributions Act ( FICA ) ( social security and Medicare ) and the Railroad Retirement Tax Act ( RRTA ) .

For employees covered by RRTA tax.

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 tax. Use Form W-2, box 14, to report total RRTA compensation, Tier 1, Tier 2, Medicare ( excluding Additional Medicare Tax ), and any Additional Medicare Tax withhold for each employee covered by RRTA tax. 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. ”
Employers should withhold Tier 1 and Tier 2 RRTA taxes on all money remuneration that stems from the employer-employee relationship, including award payments to employees to compensate for working fourth dimension lost ascribable to an on-the-job injury and lump-sum payments made to unionize employees upon ratification of collective bargaining agreements .
Employee breed options are not “ money remuneration ” subject to the RRTA. dragoon employers should not withhold Tier 1 and Tier 2 taxes when employees covered by the RRTA exercise livestock options. Employers should distillery withhold federal income tax on taxable compensation from railway employees exercising their stock options .

For employees covered by social security and Medicare.

Check the “ 941 ” checkbox on Form W-3, box bel, “ Kind of Payer, ” to transmit Forms W-2 with box 1 wages and box 2 tax withholding for employees covered by social security and Medicare. Use Form W-2, boxes 3, 4, 5, 6, and 7, to report each employee ’ s social security and Medicare wages and taxes, including Additional Medicare Tax. These boxes are not to be used to report railroad track retirement compensation and taxes .

. This is an Image: caution.gif railroad employers must withhold social security and Medicare taxes from taxable compensation of employees covered by social security and Medicare who are exercising their employee stock options..

Repayments.
If an employee repays you for wages received in error, do not offset the repayments against current year wages unless the repayments are for amounts received in erroneousness in the current year. Repayments made in the current year, but related to a anterior class or years, must be repaid in gross, not web, and require special tax treatment by employees in some cases. You may advise the employee of the full repayments made during the stream year and the amount ( if any ) related to anterior years. This information will help the employee account for such repayments on his or her federal income tax return .
If the refund was for a anterior 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 withhold ” in box 2, on Form W-2c. besides do not correct any Additional Medicare Tax withhold on the retort wages ( reported with Medicare tax withhold in box 6 ) on Form W-2c. File the “ X ” reelect that is appropriate for the come back on which the wages or compensation was originally reported ( Forms 941-X, 943-X, 944-X, or CT-1X ). Correct the social security system and Medicare wages and taxes for the time period during which the wages or compensation was primitively paid. For information on reporting adjustments to Forms 941, 941-SS, 943, 944, or Form CT-1, see incision 13 of Pub. 15 ( Circular E ), the Instructions for Form CT-1X, or segment 9 of Pub. 51 ( Circular A ) .

. This is an Image: taxtip.gif Tell your employee that the wages paid in error in a prior class remain taxable to him or her for that year. This is because the employee received and had use of those funds during that year. The employee is not entitled to file an amend retort ( Form 1040-X ) to recover the income tax on these wages. For repayments greater than $ 3,000, the employee may be entitled to a tax write-off or credit for the reward wages on his or her imprint 1040 or 1040-SR for the year of refund. however, the employee is entitled to file an amend return ( Form 1040-X ) to recover Additional Medicare Tax on these wages, if any. Refer your employee to Repayments in Pub. 525, for extra information..

Scholarship and fellowship grants.
Give a Form W-2 to each recipient role of a eruditeness or family grant entirely if you are reporting amounts includible in income under section 117 ( c ) ( relating to payments for teaching, research, or early services required as a condition for receiving the qualify scholarship ). besides see Pub. 15-A and Pub. 970. These payments are submit to federal income tax withhold. however, their taxability for sociable security and Medicare taxes ( or railroad retirement taxes, if applicable ) depends on the nature of the employment and the status of the constitution. See Students, scholars, trainees, teachers, and so forth, in section 15 of Pub. 15 ( Circular E ) .
Sick pay.
If you had employees who received nauseated pay in 2022 from an insurance ship’s company or other third-party payer and the third party notified you of the total of ghastly pay involved, you may be required to report the data on the employees ‘ Forms W-2. If the indemnity company or other third-party payer did not notify you in a timely manner about the ill pay payments, it must prepare Forms W-2 and W-3 for your employees showing the nauseated pay up. For specific report instructions, seesection 6 of Pub. 15-A .
SIMPLE retirement account.
An employee ‘s wage reduction contributions to a SIMPLE ( savings incentive match plan for employees ) retirement bill are not subject to federal income tax withholding but are subject to social security, Medicare, and railroad track 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 use. ) An employee ‘s entire contribution must besides be included in box 12 with code D or S .
An employer ‘s match or nonelective contribution to an employee ‘s SIMPLE retirement account is not submit to federal income tax withholding or sociable security system, Medicare, or railroad retirement taxes, and is not to be shown on Form W-2 .
For more information on SIMPLE retirement accounts, see Notice 98-4, 1998-1 C.B. 269. You can find Notice 98-4 on page 25 of Internal Revenue Bulletin 1998-2 at IRS.gov/pub/irs-irbs/irb98-02.pdf .
Successor/predecessor employers.
If you buy or sell a business during the year, see Rev. Proc. 2004-53 for data on who must file Forms W-2 and employment tax returns. Rev. Proc. 2004-53, 2004-34 I.R.B. 320, is available at IRS.gov/irb/2004-34_IRB # RP-2004-53 .
Terminating a business.
If you terminate your business, you must provide Forms W-2 to your employees for the calendar year of termination by the due go steady of your final form 941, 944, or 941-SS. You must besides file Forms W-2 with the SSA by the due date of your concluding shape 941, 944, or 941-SS. If filing on paper, make certain you obtain Forms W-2 and W-3 preprinted with the correct year. If e-filing, make sure your software has been updated for the current tax year .
however, if any of your employees are immediately employed by a successor employer, see Successor/predecessor employers above. besides, for information on automatic extensions for furnishing Forms W-2 to employees and filing Forms W-2, see Rev. Proc. 96-57, which is on page 14 of Internal Revenue Bulletin 1996-53 at IRS.gov/pub/irs-irbs/irb96-53.pdf .

. This is an Image: taxtip.gif Get Schedule D ( Form 941 ), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations, for information on reconcile wages and taxes reported on Forms W-2 with amounts reported on Forms 941, 941-SS, or 944..

Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) make-up amounts to a pension plan.
If an employee returned to your employment after military avail and certain makeup amounts were contributed to a pension plan for a anterior year ( s ) under the USERRA, report the prior class contributions individually in box 12. See the TIP above Code D under Box 12—Codes. You may besides report certain makeup amounts in box 14. See box 14—Other in specific Instructions for Form W-2 .
rather of reporting in box 12 ( or box 14 ), you may choose to provide a classify statement to your employee showing USERRA constitution contributions. The argument must identify the type of design, the class ( s ) to which the contributions relate, and the come contributed for each class .
Virtual currency.

For federal tax purposes, virtual currentness is treated as property. Bitcoin is an exercise of virtual currentness. Transactions using virtual currency ( such as Bitcoin ) must be reported in U.S. dollars .

The fair market respect ( FMV ) of virtual currency ( such as Bitcoin ) paid as wages is income and topic to federal income tax withholding tax, FICA tax, and FUTA tax and must be reported on Form W-2. For more information about how virtual currentness is treated for federal income tax purposes, including W-2 requirements, see Notice 2014-21, 2014-16 I.R.B. 938, available at IRS.gov/irb/2014-16_IRB # NOT-2014-21 and Rev. Rul. 2019-24, available at IRS.gov/irb/2019-44_IRB # REV-RUL-2019-24 and related FAQs, available at IRS.gov/virtualcurrencyfaqs .

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