Forms in W-2 Series Line-By-Line

Boxes 16-20 are

*not* required for reporting to the SSA, but individual states may require their use

Box 8- Allocated Tips

A large food or beverage establishment will place tips allocated to the employee, calculated using form 8027 in this box. Any amount in this box is *not* placed in Boxes 1, 7 or 5.

Code T-

Adoption benefits

AEIC

Advanced Earned Income Tax Credit

Box 8-

Allocated Tips

Code R-

Archer Medical Savings Account Contributions

If the amount exceeds $5,000.00, the amount greater than $5,000.00 must be reported in boxes 1,3, and 5 as well as in this box

Box 10

Report distributions to employees from non-qualified deferred compensation plans or nongovernmental Section 457 plans in

Box 11

When entering an amount in this box, it must have a descriptive label

Box 14

Box 13

Check Boxes

Check Box - Third Party Sick Pay

Check this box as a third party insurance company providing W-2 information or as an employer reporting sick payments by a third party.

Box d-

Control Number

Code DD-

Cost of employer-sponsored health coverage

Box 15-

Employer's State and State ID number

Code Z- Income under section 409A Nonqualified Deferred Compensation Plan

Enter all amounts deferred (including earnings on amounts deferred) that are includible in income under section 409A because the NQDC plan fails to satisfy the requirements of section 409A. Do not include amounts properly reported on a Form 1099-MISC, corrected Form 1099-MISC, Form W-2, or Form W-2c for a prior year. Also, do not include amounts that are considered to be subject to a substantial risk of forfeiture for purposes of section 409A. The amount reported in box 12 using code Z is also reported in box 1 and is subject to an additional tax reported on the employee's Form 1040.

Box 2 -

Federal Income Tax Withheld

Section 125 Plan

Flexible Spending Account

Box 15- Employer's State and State ID number

For federal tax processing, an entry in this box is not required. Id the state wages are reported using form W-2, the employer's state identification number is entered.

Report distributions from NQDC or section 457 plans to beneficiaries of deceased employees on

Form 1099-MISC, *not* on Form W-2

Distributions from governmental section 457(b) plans must be reported on

Form 1099-R

Military employers must report military retirement payments on

Form 1099-R

Code W-

Health Savings Account

Check Box - Retirement Plan

If the employee is an active participant for any part of the year in a qualified retirement plan, this box is checked. Do *not* check this box for participation in a non-qualified pension plan or section 457(b) plan.

Code Q- Nontaxable Combat Pay

If you are a military employer, report any nontaxable combat pay in box 12.

Code N- Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000

If you provided your former employees (including retirees) more than $50,000 of group-term life insurance coverage for periods during which an employment relationship no longer exists, enter the amount of uncollected Medicare tax or RRTA Medicare tax on the coverage in box 12. Do not show any uncollected Additional Medicare Tax. Do not include this amount in box 6.

Code V-

Income from exercise of non-statutory stock option(s)

Code Z-

Income under section 409A Nonqualified Deferred Compensation Plan

Code Y- Non-qualified deferred compensation Deferrals

It is not necessary to show deferrals in box 12 with code Y. For more information, see Notice 2008-115. However, if you report these deferrals, show current year deferrals, including earnings during the year on current year and prior year deferrals.

AEIC was repealed effective

January 1, 2011

Box 13- Check Boxes

Mark as many boxes as are applicable. If a box is not applicable, to any of an employer's employees, the box does not have to be included on the form when the employer files its forms W-2 with the SSA electronically.

Box 6-

Medicare Tax Withheld

Box 5-

Medicare Wages and Tips

NQDC

Non-Qualified Deferred Compensation Plans

Code Y-

Non-qualified deferred compensation Deferrals

Code Q-

Nontaxable Combat Pay

Code CC-

Not currently used

Box 14-

Other

Code F- Section 408(k)(6) Contributions

Report employee's elective deferrals made into a Section 408(k)(6) simplified employee pension (SEP) plan (including catch up contributions). If an amount is included with this code, the retirement plan box in Box 13 must be checked. Amounts reported with this code are not included in box 1 but are reported in box 3 & 5

Code R- Archer Medical Savings Account Contributions

Report employer contributions to an Archer medical savings account using this code. If contributions to an Archer medical savings account are for your employee, show all the employer contributions in box 12 and using this code. Any employer contribution that cannot be excludeable from the employee's gross income also must be reported in box 1. To the extent that it was not reasonable to believe at the time of payment that the employer contributions would be excludeable from the gross income of the employee, the employer contributions also must be shown in boxes 3 and 5.

Code L- Nontaxable Part of Employee Business Expense Reimbursements

Report the amount of employees business expense treated as substantiated (nontaxable) only if employees are reimbursed for expenses using a per diem or mileage allowance and the amount reimbursed exceeds the amount treated as substantiated under IRS rules. Any amounts reimbursed at more than the allowed per diem or mileage allowance rates must be included in boxes 1,3, and 5 with the allowed per diem or mileage being reported with code L.

Code J- Nontaxable sick pay

Report the amount of sick pay not included in income (boxes 1,3 & 5) subject to federal income tax because the employee contributed to the sick pay plan. Amounts reported are not included in any other box.

Code G- Section 457(b) Contributions

Report the employee's elective deferrals and nonelective contributions which were made by either the employee or employer into a Section 457(b) plan (including catch up contributions) Amounts reported with this code are not included in box 1 but are reported in box 3 & 5.

Code E- Section 403(b) Contributions

Report the employee's elective deferrals made into a Section 403(b) plan (including catch-up contributions) If an amount is included with this code, the retirement plan box in Box 13 must be checked. Amounts reported with this code are not included in box 1 but are reported in box 3 & 5

Code K- Tax on Excess Golden Parachute Payments

Report the excise tax of 20% on any excess "golden parachute" payments made to key corporate employees. If the excess payments are considered wages, also report the excise tax as income tax withholding in box 2.

Box 6- Medicare Tax Withheld

Report the total Medicare tax withheld or paid by the employer for the employee. Report all Medicare tax including the additional Medicare tax wages on excess of $200,000.

Box 5- Medicare Wages and Tips

Report the total Medicare wages paid by the employer and tips reported by the employee. Do not include allocated tips reported in Box 8. Non-cash fringe benefits are considered wages and are included in this box. Report all wages subject to Medicare tax, including those wages in excess of $200,000 that are subject to additional Medicare tax, in this box.

Box 4- Social Security Tax Withheld

Report the total social security taxes withheld from the employee or paid by the employer for the employee. This box should contain an amount equal to 6.2% times the amount in box 3.

Box 3- Social Security Wages

Report the total social security wages paid by the employer to the employee. Do not include reported tips (box 7) or allocated tips (box 8). Noncash amounts considered wages are included in this box. For 2016- the amount reported in boxes 3 & 7 cannot exceed $118,500.00

957

Reporting Back Pay and Special Wage Payments to the Social Security Administration

Code AA-

Roth 401(k) Deferrals

Code BB-

Roth 403(b) Deferrals

Code EE-

Roth 457(b) Deferrals

Code S-

SIMPLE Retirement Account Contributions

Code D-

Section 401(k) Contributions

Code E-

Section 403(b) Contributions

Code W- Health Savings Account

Show any employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria) plan) to an health savings account

Code S- SIMPLE Retirement Account Contributions

Show deferrals under a section 408(p) salary reduction SIMPLE retirement account. However, if the SIMPLE plan is part of a section 401(k) arrangement, use code D. If an amount is included with this code, the retirement plan in box 13 must be checked. Amounts reported are not included in box 1 but are reported in boxes 3 and 5.

Code A- Uncollected social security or RRTA tax

Show the employee social security or Railroad Retirement Tax Act (RRTA) tax on all of the employee's tips that you could not collect because the employee did not have enough funds from which to deduct it. Do not include this amount in box 4.

Code V- Income from exercise of non-statutory stock option(s)

Show the spread (that is, the fair market value of stock over the exercise price of option(s) granted to your employee with respect to that stock) from your employee's (or former employee's) exercise of nonstatutory stock option(s). Include this amount in boxes 1, 3 (up to the social security wage base), and 5. Include this amount in box 14 if you are a railroad employer. This reporting requirement does not apply to the exercise of a statutory stock option, or the sale or disposition of stock acquired pursuant to the exercise of a statutory stock option.

Code T- Adoption benefits

Show the total that you paid or reimbursed for qualified adoption expenses furnished to your employee under an adoption assistance program. Also include adoption benefits paid or reimbursed from the pretax contributions made by the employee under a section 125 (cafeteria) plan. However, do not include adoption benefits forfeited from a section 125 (cafeteria) plan. Report all amounts including those in excess of the $13,460 exclusion. Amounts reported with this code are not included in box 1 but are reported in box 3 & 5.

Box 4-

Social Security Tax Withheld

Box 7-

Social Security Tips

Box 3-

Social Security Wages

Boxes 16-20 -

State and Local Tax Information

Code K-

Tax on Excess Golden Parachute Payments

Code C-

Taxable cost of group-term life insurance over $50,000

Box 7- Social Security Tips

The amount of tips the employee reports to the employer during the calendar year is reported. Even if the employer cannot deduct taxes, the amount of tips reported by the employee is included. The total of Boxes 3 and 7 cannot exceed $118,500.00 for 2016

Box 14- Other

The employer may choose to place any item of information for the employee in this box; no items are required. When entering an amount in this box, it must have a descriptive label. When using the annual lease value method to calculate personal use of a company vehicle, the amount reported in box 1,3 and 5 may be reported in this box or a separate statement.

Boxes 16-20-

These boxes may be used to report state and local tax information. They are not required for reporting to the SSA, but individual states may require their use. Some states require reporting of state wages and taxes on separate forms. These boxes may be used to report wages and taxes to two different states and localities. Ensure that each state's locality's information is separated by the broken lines.

Check Box - Statutory Employee

This box is checked for statutory employees who earnings are subject to social security and Medicare taxes but are not subject to federal income tax withholding.

Box d- Control Number

This box is for the employer's use and is not required to be completed

Box 10- Dependent Care Benefits

Total value of dependent care benefits provided to an employee is reported in this box. If the amount exceeds $5,000.00, the amount greater than $5,000.00 must be reported in boxes 1,3, and 5 as well as in this box.

Box 1- Wages and Tips

Total wages, prizes and awards paid during the calendar year, excluding elective deferrals into deferred compensation plans and Section 125 plans. The amount paid, not earned, is reported. non-cash payments, including fringe benefits all tips reported by the employee, but do not include allocated tips reported in box 8 certain employee business expense reimbursements contributions to Roth 401(k), 403(b) and 457(b) plans Include all other compensation, such as group term life insurance over $50,000 from which no income was withheld. The amounts reported in box 1 meed the IRS's definition of gross income from employment. These amounts may or may not be subject to federal income tax withholding.

Code N-

Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000

Code B-

Uncollected Medicare tax on tips.

Code A-

Uncollected social security or RRTA tax

Code M-

Uncollected social security tax on the cost of group-term life insurance over $50,000

Code EE- Roth 457(b) Deferrals

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. Amounts reported with this code are included in boxes 1,3, and 5.

Code AA- Roth 401(k) Deferrals

Use this code to report designated Roth contributions under a section 401(k) plan. Do not use this code to report elective deferrals under code D.

Code BB- Roth 403(b) Deferrals

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.

Code DD- Cost of employer-sponsored health coverage

Use this code to report the cost of employer-sponsored health coverage. This amount is not reported in boxes 1,3 or 5.

When filing electronically with the SSA this box does not apply

Void

Box 1-

Wages & Tips

Void

When filing forms with the SSA, if an error is made completing the form or a corrected W-2 had been issued, this box is checked. Be sure not to include amounts from a void W-2 on form W-3. When filing electronically with the SSA this box does not apply.

Do not report any item in Box 12 without

an applicable code

Boxes e and f are

combined on the employee's copies to allow the employer to use window envelopes or mailer forms.

Do not use any

commas or dollar signs

Employers filing paper form W-2 with the SSA can only place 4 items in Box 12. When required to place more than 4 items in this box,

employers must complete a second form W-2 that contains only the employees name, address and SSN, the employers name, address and EIN, and the additional items in Box 12

Do not make any

erasures, whiteouts or stikeouts as this will cause the form W-2 to be voided

The total of Boxes 3 and 7 cannot

exceed $118,500.00 for 2016

For 2016 the social security tax withheld cannot

exceed $7,347.00

Special wage payments, such as accumulated sick pay or vacation pay are

not reported in box 11

For further information identifying "active participant",

refer to IRS notice 87-16

You can add

suffixes such as Jr. Sr. only if the suffix appears on the employee's social security card, but the SSA prefers they not be entered on Copy A. However, suffixes may be entered on paper W-2s provided to the employee when filing W-2s electronically.

Dependent care benefits provided under Section 125 plan may be reported as either

the amount deferred from the employee's salary or the benefits provided.

Benefits provided directly by the employer must include the fair market value of the benefit received, not

the employer's cost of providing the benefit

Check the employee's social security card to verify the name. Use only the first name, middle initial and last name. Do not use

titles, such as Mr., Mrs. Ms., Dr., Capt., etc. and do not use academic degrees or professional certifications such as M.D. or Ph.D. Titles added as prefixes or suffixes make it difficult for the SSA's computer software to determine the employee's actual name.

Generally, reportable wages include

wages, prizes and awards paid during the calendar year

Box 10-

Dependent Care Benefits

Code H- Section 501(c)(18)(D) Contributions

Report the employee's elective deferrals made into Section 501(c)(18)(D) plan. If an amount is included with this code, the retirement plan box in Box 13 must be checked. Amounts reported with this code are not included in box 1 but are reported in box 3 & 5. Employee's will deduct the deferral on their federal income tax return.

Code F-

Section 408(k)(6) Contributions

Code G-

Section 457(b) Contributions

Code H-

Section 501(c)(18)(D) Contributions

Code B- Uncollected Medicare tax on tips.

Show the employee Medicare tax or RRTA Medicare tax on tips that you could not collect because the employee did not have enough funds from which to deduct it. Do not show any uncollected Additional Medicare Tax. Do not include this amount in box 6

Code C- Taxable cost of group-term life insurance over $50,000

Show the taxable cost of group-term life insurance coverage over $50,000 provided to your employee (including a former employee). See Group-term life insurance. Also include this amount in boxes 1, 3 (up to the social security wage base), and 5. Include the amount in box 14 if you are a railroad employer.

Code P- Excludable Moving Expense Reimbursements

Show the total moving expense reimbursements that you paid directly to your employee for qualified (deductible) moving expenses.

If you made distributions and also are reporting any deferrals in boxes 3 and/or 5

do not complete box 11. See Pub. 957, Reporting Back Pay and Special Wage Payments to the Social Security Administration, and Form SSA-131, Employer Report of Special Wage Payments, for instructions on reporting these and other kinds of compensation earned in prior years. 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.

Welfare benefit plans, stock option plans, and plans providing dismissal pay, termination pay, or early retirement pay are

not generally NQDC plans

If amounts are reported in box 7 (social security tips), Box 12 Code A (uncollected social security tax on group term life insurance) the reconciliation of Box 3 to Box 4 requires using the following formula:

Box 4 = [(Box 3 + Box 7) - Box 12 Code A - Box 12 Code M

If amounts reported in Box 12 Code B or in Box 12 Code N the reconciliation of Box 5 to Box 6 when the Medicare wages are less than $200,000 use the following formula:

Box 6 = (Box 5 x 1.4%) - Box 12 Code B - Box 12 Code N

If the amount in Box 6 is in excess of $200,000 the following formula is used to reconcile Box 5 to Box 6 :

Box 6 = (Box 5 x 1.4%) = ((Box 5 - $200,000) x 0.9%)

Even if the employer cannot deduct taxes, the amount of tips reported by the employee is included in

Box 7

Box a-

Employee's Social Security Number

Box f-

Employee's address and zip code

Box e-

Employee's name (first, middle initial, last, suffix)

SSA-131

Employer Report of Special Wage Payments

Box c-

Employer's name, address and zip code

8027

Employers Annual Information Return of Tip Income and Allocated Tips

Box b-

Employers Identification Number (EIN)

Box e- Employee's name (first, middle initial, last, suffix)

Enter the employees name as shown on their social security card in the appropriate box. On form W-2, use the employee's middle initial, even if the full name appears on the social security card. If the employee's name changes, have the employee obtain a new social security card from the SSA before using the new name on W-2. Continue to use the name on the original social security card until a new social security card is shown.

Box c- Employer's name address and zip code

Enter the employers name, address and zip code as they appear on form 941

Box b- Employers Identification Number (EIN)

Enter the number assigned by the IRS. If an EIN has not been assigned, write "Applied For" in the box. EINs can be obtained quickly through the IRS's and Internet TIN assignment program.

Box a- Employee's Social Security Number

Enter the number shown on the employee's social security card. If the employee does not have a social security number but is applying for one, enter "Applied For." If filing electronically, put all zeros in the SSN field when the SSN is not available. Do not rely on employment applications or W-4 forms to obtain the SSN. Insist on seeing the employees Social Security Card to ensure you have the correct number.

Box 2 - Federal Income Tax Withheld

Enter the total amount of federal income tax withheld or paid by the employer for the employee and, if applicable, the 20% excise tax withheld on excess golden parachute payments. Include income tax withheld by 3rd party sick pay providers not filing form W-2 on behalf of the employee. The employer may complete a separate form W-2 for employees receiving sick pay from 3rd parties.

Code P-

Excludable Moving Expense Reimbursements

Code D- Section 401(k) Contributions

Report the employee's elective deferrals made info a Section 401(k) plan (including match-up contributions) If an amount is included with this code, the retirement plan box in Box 13 must be checked. Amounts reported with this code are not included in box 1 but are reported in box 3 & 5.

Code M- Uncollected social security tax on the cost of group-term life insurance over $50,000

If you provided your former employees (including retirees) more than $50,000 of group-term life insurance coverage for periods during which an employment relationship no longer exists, enter the amount of uncollected social security or RRTA tax on the coverage in box 12. Do not include this amount in box 4.

Box f- Employee's address and zip code

Include the address number, street, apartment number or suite number. For a foreign address, give the information in the following order: city, province or state, and country Do not abbreviate the county's name. The US Postal Service recommends that no periods or commas be used in the address

Box 12

Includes a variety of codes and amounts. The code must be entered with a capital letter. If an entry is required, the code is entered in front of the amount.

Box 11-

Non-qualified Plans

Code L-

Nontaxable Part of Employee Business Expense Reimbursements

Code J-

Nontaxable sick pay

Box 9- Not used for 2016

Prior to 2011 Advanced Earned Income Tax Credit payments were reported in Box 9. The AEIC was repealed effective January 1, 2011.

Box 11- Non-qualified Plans

The purpose of this box is for SSA to determine if any amounts reported in Box 1 or Box 3 and/or Box 5 were earned the prior year. Amounts earned in a prior year will not be used by SSA in the social security earnings test. Report distributions to employees from non-qualified deferred compensation plans or nongovernmental Section 457(b) plans. Generally, this amount is included in Box 1 but not Boxes 3 or 5. If no distribution was made, report the deferrals (plus earnings) under a non-qualified plan that became taxable in the current year for social security (Box 3) and Medicare (Box 5) but do not include deferrals from current-year services.

Forms should be filed either

alphabetically or in social security number sequence. This allows SSA to locate them once they are filed.

Unlike qualified plans, NQDC plans do not meet the qualification requirements for tax-favored status for this purpose. NQDC plans include those

arrangements traditionally viewed as deferring the receipt of current compensation.

Under non-qualified 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).