Page 437 - Individual Forms & Instructions Guide

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Medicare Tax) withheld. Do not include your share. Also report these distributions in box 1. Make only one
Include only tax withheld for 2023 wages and tips. If you entry in this box. Distributions from governmental section
paid your employee's share of the taxes, see Employee's 457(b) plans must be reported on Form 1099-R, not in
social security and Medicare taxes (or railroad retirement box 1 of Form W-2.
taxes, if applicable) paid by employer. Under nonqualified plans or nongovernmental 457(b)
For more information on Additional Medicare Tax, go to plans, deferred amounts that are no longer subject to a
IRS.gov/ADMTfaqs. substantial risk of forfeiture are taxable even if not
Box 7—Social security tips. Show the tips that the distributed. Report these amounts in boxes 3 (up to the
employee reported to you even if you did not have enough social security wage base) and 5. Do not report in box 11
employee funds to collect the social security tax for the deferrals included in boxes 3 and/or 5 and deferrals for
tips. The total of boxes 3 and 7 should not be more than current year services (such as those with no risk of
$160,200 (the maximum social security wage base for forfeiture).
2023). Report all tips in box 1 along with wages and other If you made distributions and are also reporting
compensation. Also include any tips reported in box 7 in ! any deferrals in boxes 3 and/or 5, do not complete
box 5. CAUTION box 11. See Pub. 957, Reporting Back Pay and
Box 8—Allocated tips (not applicable to Forms Special Wage Payments to the Social Security
W-2AS, W-2CM, W-2GU, or W-2VI). If you operate a Administration, and Form SSA-131, Employer Report of
large food or beverage establishment, show the tips Special Wage Payments, for instructions on reporting
allocated to the employee. See the Instructions for Form these and other kinds of compensation earned in prior
8027, Employer's Annual Information Return of Tip years. However, do not file Form SSA-131 if this
Income and Allocated Tips. Do not include this amount in situation applies and the employee was not 61 years
box 1, 3, 5, or 7. old or more during the tax year for which you are
filing Form W-2.
Box 10—Dependent care benefits (not applicable to
Forms W-2AS, W-2CM, W-2GU, or W-2VI). Show the Unlike qualified plans, NQDC plans do not meet the
total dependent care benefits under a dependent care qualification requirements for tax-favored status for this
assistance program (section 129) paid or incurred by you purpose. NQDC plans include those arrangements
for your employee. Include the fair market value (FMV) of traditionally viewed as deferring the receipt of current
care in a daycare facility provided or sponsored by you for compensation. Accordingly, welfare benefit plans, stock
your employee and amounts paid or incurred for option plans, and plans providing dismissal pay,
dependent care assistance in a section 125 (cafeteria) termination pay, or early retirement pay are generally not
plan. Report all amounts paid or incurred (regardless of NQDC plans.
any employee forfeitures), including those in excess of the Report distributions from NQDC or section 457 plans to
$5,000 exclusion. This may include (a) the FMV of beneficiaries of deceased employees on Form
benefits provided in kind by the employer, (b) an amount 1099-MISC, not on Form W-2.
paid directly to a daycare facility by the employer or Military employers must report military retirement
reimbursed to the employee to subsidize the benefit, or (c) payments on Form 1099-R.
benefits from the pre-tax contributions made by the
employee under a section 125 dependent care flexible Do not report special wage payments, such as
spending account. Include any amounts over your plan’s TIP accumulated sick pay or vacation pay, in box 11.
exclusion in boxes 1, 3, and 5. For more information, see For more information on reporting special wage
Pub. 15-B. payments, see Pub. 957.

An employer that amends its cafeteria plan to Box 12—Codes. Complete and code this box for all
TIP provide a grace period for dependent care items described below. Note that the codes do not relate
assistance may continue to rely on Notice 89-111 to where they should be entered in boxes 12a through 12d
by reporting in box 10 the salary reduction amount elected on Form W-2. For example, if you are only required to
by the employee for the year for dependent care report code D in box 12, you can enter code D and the
assistance (plus any employer matching contributions amount in box 12a of Form W-2. Report in box 12 any
attributable to dependent care). Also see Notice 2005-42, items that are listed as codes A through HH. Do not report
2005-23 I.R.B. 1204, available at IRS.gov/irb/ in box 12 section 414(h)(2) contributions (relating to
2005-23_IRB#NOT-2005-42 and Notice 2005-61, certain state or local government plans). Instead, use
2005-39 I.R.B. 607, available at IRS.gov/node/ box 14 for these items and any other information that you
51071#NOT-2005-61. wish to give to your employee. For example, union dues
and uniform payments may be reported in box 14.
Box 11—Nonqualified plans. The purpose of box 11 is
for the SSA to determine if any part of the amount On Copy A (Form W-2), do not enter more
reported in box 1 or boxes 3 and/or 5 was earned in a TIP than four items in box 12. If more than four
prior year. The SSA uses this information to verify that items need to be reported in box 12, use a
they have properly applied the social security earnings separate Form W-2 to report the additional items (but
test and paid the correct amount of benefits. enter no more than four items on each Copy A (Form
Report distributions to an employee from a nonqualified W-2)). On all other copies of Form W-2 (Copies B, C,
plan or nongovernmental section 457(b) plan in box 11. etc.), you may enter more than four items in box 12 when

-18- General Instructions for Forms W-2 and W-3 (2023)