Form W 2
Form W-2 (Wage and Tax Statement) is used to report salary paid to employees and the taxes withdrawn from them. The form is used to report FICA (Federal Insurance Contribution Act) taxes. This is a taxation act which provides benefits for retirees, people with disabilities and children of deceased workers. Employers must fill W-2 form for each employee to whom they give a salary, wage, or other compensation, as part of the employment duties. The W-2 form reports income on a calendar year (January 1 through December 31), regardless of the fiscal year used by the employer or employee for other federal tax purposes. This indicates the time period in which an employee has been compensated. After the final payroll in December, employment is normally compensated and subjected to tax in the subsequent year.
If an employer receives a returned W-2 form because of an out-of-date employee address, the employer must make a good-trust effort to deliver the W-2 form. They must keep copies of W-2 forms for up to four years.
6 copies are included in W 2 form
- Copy A: In this employer submits W 2 forms to the SSA
- Copy B: This is to be sent to the employee which was filed by the employee with the employee’s federal income tax returns.
- Copy C: This is to be sent to the employee and retained by the employee for the employee’s records.
- Copy D: This is to be retained by the employer for records.
- Copy 1: This is to be filed with the employer’s state or local income tax returns.
- Copy 2: To be filed with the employee’s state, city or local income tax returns.
|Form W 2 12 Codes||Description|
|Code A||Includes total amount as part of your tax on Form 1040|
|Code B||Include this amount as part of your total tax on Form 1040. And Non Collection of Medicare tax tips are also included in this.|
|Code C||Taxable benefit of group term life insurance over $ 50,000|
|Code D||Non taxable elective salary deferrals to a 401(K) retirement plan.|
|Code E||Non taxable elective salary deferrals to a 403(b) retirement plan.|
|Code F||Non taxable elective salary deferrals to a 408(K) (6) retirement plan.|
|Code G||Non taxable elective salary deferrals and non elective company contributions to a 457(b) retirement plan.|
|Code H||Non taxable elective salary deferrals to a 501(c) (18) (D) tax exempt plan.|
|Code J||Non taxable sick pay.|
|Code K||Excise tax on excess “golden parachute payments ”|
|Code L||Non taxable reimbursements for employee business expenses|
|Code M||Uncollected Social Security or RRTA tax on taxable group term life insurance over $50,000 for former employees|
|Code N||Non collection Medicare tax on taxable group term life insurance over $50,000 for former employees.|
|Code P||Non taxable reimbursements for employee moving expenses, if amount were paid directly to employee.|
|Code Q||Some individuals may elect to include combat pay when calculating their earned Income Credit.|
|Code R||Company contributions to an Archer Medical Saving account.|
|Code S||Non taxable salary deferral to 408(P) simple retirement plan.|
|Code T||Employer paid adoption benefits.|
|Code V||Income from the exercise of non statutory stock options.|
|Code W||Company contribution to your Health Saving Account.|
|Code Y||Salary deferrals under 409(A) non qualified deferred compensation plan.|
|Code Z||Income received under 409(A) deferred compensation plan.|
Form W-3, Transmittal of Wage and Tax Statement, is a form where employers must include filing paper W-2 forms with the Social Security Administration. Form W-3 calculates the total wages, social Security wages, and FICA Federal Insurance Contribution Act taxes withdrawn from employees during the year and lists the number of W-2 forms being transmitted.
When you submit your W-2 forms electronically through your online account, include W-3 information in the electronic file. Therefore, you don’t need to submit a separate W-3.
To print form w-3
With QuickBooks feature you can now print W 3 forms. For prior based yearly tax, W 3 cannot be printed from your payroll product. You can also print and generate Payroll tax report for your records. If you paper file at least one W 2, you must send a paper form W 3 along with COPY A page of form W 2.
If at all you are filing with paper forms:
- You must have w 3 form for the correct year
- You must file by the due date at the end of January.
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