Report in box 3 elective deferrals to certain qualified cash or deferred compensation arrangements and to retirement plans described in box 12 (codes D, E, F, G, and S) even though the deferrals are not includible in box 1. Also report in box 3 designated Roth contributions made under a section 401(k) plan, under a section 403(b) salary reduction agreement, or under a governmental section 457(b) plan described in box 12 (codes AA, BB, and EE). Show the total taxable wages, tips, and other compensation that you paid to your employee during the year. However, do not include elective deferrals (such as employee contributions to a section 401(k) or 403(b) plan) except section 501(c)(18) contributions.

If the name has changed, the employee must get a corrected social security card from any SSA office. Use the name on the original card until you see the corrected card. This entry should be the same as shown on your Forms 941, 943, 944, CT-1, or Schedule H (Form 1040). The U.S. Postal Service recommends that no commas or periods be used in return addresses. If you do not provide the correct employee name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs on Information Returns.

Roth Contributions and Health Coverage

This stands for “See instructions for box 12,” meaning that the person filling out the W-2 Box 12 should see the provided instructions if they have any questions or concerns about the process. You’ll need an additional Form W-2 if you need to report more than four. Enter the code on the left of the line and the dollar amount on the right.

The other Form W-2 incorrectly reported social security wages of $30,000. If you filed a Form W-2 with the SSA that reported an incorrect address for the employee, but all other information on the Form W-2 was correct, do not file Form W-2c with the SSA merely to correct the address. If you are making a correction for previously filed Forms 941, 941-SS, 943, 944, or CT-1, use the corresponding “X” forms, such as Forms 941-X, 943-X, 944-X, or CT-1X for the return period in which you found the error. 15 (Circular E) and the Instructions for Form CT-1X for more details.

Payroll Forms

Use this box only to make corrections because of an administrative error. Check this box if you file Forms 941 and no other category applies. A church or church organization should check this box even if it is not required to file Forms 941 or 944. If you are a railroad employer sending Forms W-2 for employees covered under the Railroad Retirement Tax Act (RRTA), check the “CT-1” box.

On all other copies of Form W-2 (Copies B, C, etc.), you may enter more than four items in box 12 when using an approved substitute Form W-2. If necessary, you can issue more than one Form W-2 to an employee. For example, you may need to report more than four coded items in box 12 or you may want to report other compensation on a second form. If you issue a second Form W-2, complete boxes a, b, c, d, e, and f with the same information as on the first Form W-2. Show any items that were not included on the first Form W-2 in the appropriate boxes.

Can Employers Report Multiple Codes in Box 12 for a Single Employee?

Section 6109 requires you to provide your employer identification number (EIN). If you fail to provide this information in a timely manner, or provide false or fraudulent information, you may be subject to penalties. Enter the total of amounts reported in boxes 1 through 8, 10, and 11 as “Previously reported” and “Correct information” from Forms W-2c.

Two Forms W-2 were filed under the same EIN, but wages on one were incorrect. Use the current version of Form W-2c to correct errors (such as incorrect name, SSN, or amount) on a previously filed Form W-2 or Form W-2c. To e-file your corrections, see Correcting wage reports . Include this information for use by the SSA if any questions arise during processing.

• BSO lets you print copies of these forms to file with state or local governments, distribute to your employees, and keep for your records.
• The first option (which the SSA prefers) is to file a single set of Forms W-2 per employee for the entire year, even if only part of the year’s wages are subject to both social security and Medicare taxes.
• Retain your reconciliation information for future reference.
• For example, if you see Code D in Box 12a, it means your 401(k) contributions are being reported.
• This is a number mainly used by payroll departments to track employees’ unique Form W-2s in their system.

Code N—Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (for former employees).

• Report on Form W-2 payments of $600 or more to election workers for services performed in state, county, and municipal elections.
• The state and local information boxes can be used to report wages and taxes for two states and two localities.
• It is important to note that the impact of Box 12a on taxable income may vary based on individual circumstances.
• These codes cover everything from elective deferrals to a section 401(k) to income from qualified equity grants.
• 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 .

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. You may request only one extension of time to file Form W-2 with the SSA by submitting a complete application on Form 8809, Application for Extension of Time To File Information Returns.

Simplified and Flexible Filing Process

It’s used to record various types of income, including taxable amounts that are declared as wages in other sections of the form and non-taxable amounts to report only. If you are a railroad employer sending Forms W-2c for employees covered under the RRTA, check the “CT-1” checkbox. When there are discrepancies between amounts reported on Forms W-2 and W-3 filed with the SSA and on Forms 941, 943, 944, CT-1, or Schedule H (Form 1040) filed with the IRS, you will be contacted to resolve the discrepancies.

Understanding the Box 12 Codes on Form W-2: A Quick Guide

Check “941” (or “944”) in box b of Form W-3 or Form W-3SS. In a few situations, reporting instructions vary depending on the filing method you choose. For example, you can include every type of box 12 amount in one employee wage record if you upload an electronic file. If you file on paper or create Forms W-2 online, you can include only four box 12 amounts per Form W-2.

Tax advisors or accountants can provide valuable guidance and expertise to help you correctly what is box 12a interpret the information in Box 12a and accurately report it on your tax forms. Another example would be an employee who received moving expense reimbursements from their employer. If the reimbursements are excludable from income, they would be reported in Box 12a using code P. In this article, we will explain what Box 12a is, how to decode it, and its significance in tax filing. By the end, you will be equipped with the knowledge to confidently navigate this section of the W2 form and accurately file your taxes. Box 12 is used to record the “other contributions” made employer for each employee.

Understanding the information in this box is essential as it can impact your tax calculations, deductions, and credits. These box 12 codes are used for specific types of deductions and contributions. Employers also use W-2 to report their Federal Insurance Contributions Act (FICA) taxes withheld from the salaries of their employees. Let us discuss what is box 12 in Form W-2 and the different codes used to represent different information for employees. By understanding and properly handling Box 12 codes, taxpayers can ensure accurate filings, minimize tax liability, and avoid potential issues with the IRS. AA – Designated Roth contributions under a 401(k) plan, a type of cash or deferred arrangement, is also included in Box 1, reflecting an integral part of your compensation.