2023 Department of the Treasury

Internal Revenue Service

General Instructions for

Forms W-2 and W-3
(Including Forms W-2AS, W-2CM, W-2GU, W-2VI, W-3SS, W-2c, and W-3c)
Section references are to the Internal Revenue Code the threshold for mandatory electronic filing. Currently,
unless otherwise noted. electronic filing is required if 250 returns of one type are
filed. If final regulations are issued and effective for 2023
Contents Page
tax returns required to be filed in 2024, we will post an
Future Developments . . . . . . . . . . . . . . . . . . . . . . .. 1
article at IRS.gov/FormW2 explaining the change. Until
What's New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 final regulations are issued, however, the number remains
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 at 250, as reflected in these instructions.
Need Help? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4
Disaster tax relief. Disaster tax relief is available for
How To Get Forms and Publications . . . . . . . . . . . .. 4 those affected by recent disasters. For more information
Common Errors on Forms W-2 . . . . . . . . . . . . . . . .. 5 about disaster relief, go to IRS.gov/DisasterTaxRelief.
General Instructions for Forms W-2 and W-3 . . . . . .. 5
Penalties increased. Failure to file and failure to furnish
Special Reporting Situations for Form W-2 . . . . . . . .. 7 penalties, and penalties for intentional disregard of filing
Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 and payee statement requirements, have increased due
Specific Instructions for Form W-2 . . . . . . . . . . . . . . 15 to adjustments for inflation. The higher penalty amounts
Specific Instructions for Form W-3 . . . . . . . . . . . . . . 23 apply to returns required to be filed after December 31,
General Instructions for Forms W-2c and W-3c . . . . . 25 2023. See Penalties for more information.
Special Situations for Forms W-2c and W-3c . . . . . . 25 Reminders
Specific Instructions for Form W-2c . . . . . . . . . . . . . 27
Discrepancies when reconciling Forms W-2 and W-3
Specific Instructions for Form W-3c . . . . . . . . . . . . . 28
with Forms 941, 941-SS, 943, 944, CT-1, and Sched-
Form W-2 Reference Guide for Box 12 Codes . . . . . 30 ule H (Form 1040) due to coronavirus (COVID-19) re-
Form W-2 Box 13 Retirement Plan Checkbox lated employment tax credits and other tax relief.
Decision Chart . . . . . . . . . . . . . . . . . . . . . . . . . 30 You may have a discrepancy when reconciling Forms W-2
Nonqualified Deferred Compensation Reporting and W-3 to Forms 941, 941-SS, 943, 944, CT-1, and
Example Chart . . . . . . . . . . . . . . . . . . . . . . . . . 31 Schedule H (Form 1040) if you utilized any of the
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 COVID-19 tax relief. See Pub. 15 or Pub. 51, the
instructions for your respective employment tax form, and
Future Developments the Caution under Reconciling Forms W-2, W-3, 941,
For the latest information about developments related to 941-SS, 943, 944, CT-1, and Schedule H (Form 1040), for
Forms W-2 and W-3 and their instructions, such as more information.
legislation enacted after they were published, go to Due date for filing with SSA. The due date for filing
IRS.gov/FormW2. 2023 Forms W-2, W-2AS, W-2CM, W-2GU, W-2VI, W-3,
What's New and W-3SS with the SSA is January 31, 2024, whether
you file using paper forms or electronically.
Forms W-2 (including Forms W-2AS, W-2GU, and
Extensions of time to file. Extensions of time to file
W-2VI) redesigned. Beginning with the tax year 2023
Form W-2 with the SSA are not automatic. You may
forms (filed in tax year 2024), you may complete and print
request one 30-day extension to file Form W-2 by
Copies 1, B, C, 2 (if applicable), and D (if applicable) of
submitting a complete application on Form 8809,
Forms W-2, W-2AS, W-2GU, and W-2VI on IRS.gov to
Application for Extension of Time To File Information
provide to the respective recipient. An entry made in any
Returns, indicating that at least one of the criteria on the
one of these copies will automatically populate to the
form and instructions for granting an extension applies,
other copies. As before, Copy A cannot be completed
and signing under penalties of perjury. The IRS will only
online to print and file with the SSA and is posted on
grant the extension in extraordinary circumstances or
IRS.gov for informational purposes only. Copy D for
catastrophe. See Extension of time to file Forms W-2 with
employers and the Note for Employers that was
the SSA for more information. This does not affect
previously provided on the back of Copy D has been
extensions of time to furnish Forms W-2 to employees.
removed from the Forms W-2AS, W-2GU, and W-2VI to
See Extension of time to furnish Forms W-2 to employees
reduce the number of pages for printing purposes.
for more information.
Electronic filing of returns. The Taxpayer First Act of
2019, enacted July 1, 2019, authorized the Department of
the Treasury and the IRS to issue regulations that reduce

Dec 29, 2022 Cat. No. 25979S

 Get it done faster... Additional Medicare Tax. In addition to withholding
TIP E-file your Forms W-2 and W-2c with the SSA. Medicare tax at 1.45%, an employer is required to
See E-filing. withhold a 0.9% Additional Medicare Tax on any Federal
Insurance Contributions Act (FICA) wages or Railroad
Rejected wage reports from the Social Security Ad- Retirement Tax Act (RRTA) compensation it pays to an
ministration (SSA). The SSA will reject Form W-2 employee in excess of $200,000 in a calendar year. An
electronic and paper wage reports under the following employer is required to begin withholding Additional
conditions. Medicare Tax in the pay period in which it pays wages or
• Medicare wages and tips are less than the sum of compensation in excess of $200,000 to an employee and
social security wages and social security tips; continue to withhold it until the end of the calendar year.
• Social security tax is greater than zero; social security Additional Medicare Tax is imposed only on the
wages and social security tips are equal to zero; and employee. There is no employer share of Additional
• Medicare tax is greater than zero; Medicare wages and Medicare Tax. All wages and compensation that are
tips are equal to zero. subject to Medicare tax are subject to Additional Medicare
Additionally, Forms W-2 and W-2c electronic and Tax withholding if paid in excess of the $200,000
paper wage reports for household employers will be withholding threshold.
rejected under the following conditions. For more information on Additional Medicare Tax, go to
• The sum of social security wages and social security IRS.gov/ADMTfaqs.
tips is less than the minimum yearly earnings subject to
social security and Medicare tax withholding for a Unless otherwise noted, references to Medicare tax
household employee, and include Additional Medicare Tax.
• The Medicare wages and tips are less than the Medicaid waiver payments. Notice 2014-7 provides
minimum yearly earnings subject to social security and that certain Medicaid waiver payments may be excluded
Medicare tax withholding for a household employee. from income for federal income tax purposes. See Notice
If the above conditions occur in an electronic wage 2014-7, 2014-4 I.R.B. 445, available at IRS.gov/irb/
report, the SSA will notify the submitter by email or postal 2014-4_IRB#NOT-2014-7. Also see IRS.gov/
mail to correct the report and resubmit it to the SSA. If the MedicaidWaiverPayments for questions and answers on
above conditions occur in a paper wage report, the SSA the notice.
will notify the employer by email or postal mail to correct Business Services Online (BSO). The SSA has
the report and resubmit it to the SSA. enhanced its secure BSO website to make it easier to
Note. Do not write “corrected” or “amended” on any register and navigate. Use BSO’s online fill-in forms to
resubmitted reports. create, save, and submit Forms W-2 and W-2c to the SSA
Household employers, see Pub. 926, Household electronically. BSO lets you print copies of these forms to
Employer's Tax Guide. file with state or local governments, distribute to your
employees, and keep for your records. BSO generates
Social security numbers. Employers may truncate the
Form W-3 automatically based on your Forms W-2. You
employee’s SSN on employee copies of Forms W-2. Do
can also use BSO to upload wage files to the SSA, check
not truncate the employees’ SSN on Copy A of Forms
on the status of previously submitted wage reports, and
W-2, W-2c, W-2AS, W-2GU, and W-2VI. See Taxpayer
take advantage of other convenient services for
identification numbers (TINs), later. Also see Regulations
employers and businesses. Visit the SSA’s Employer W-2
section 31.6051-1(a)(1)(i)(B) and 31.6051-2(a). To
Filing Instructions & Information website at SSA.gov/
truncate where allowed, replace the first 5 digits of the
employer for more information about using BSO to save
9-digit number with asterisks (*) or Xs (for example, an
time for your organization. Here you will also find forms
SSN xxx-xx-1234 would appear on the employee copies
and publications used for wage reporting, information
as ***-**-1234 or XXX-XX-1234). Truncation of SSNs on
about verifying employee social security numbers online,
employee copies of Form W-2 is voluntary. You are not
how to reach an SSA employer services representative for
required to truncate SSNs on employee copies of Form
your region, and more.
W-2. Check with your state, local, or territorial
governments to determine whether you are permitted to Preview BSO by viewing a brief online tutorial. Go
truncate SSNs on copies of Form W-2 submitted to the TIP to SSA.gov/employer/bsotut.htm.
government.
An employer’s EIN may not be truncated on any form. Correcting wage reports. You can use BSO to
See Regulations section 31.6051-1(a)(1)(i)(A) and create, save, print, and submit Forms W-2c, Corrected
301.6109-4(b)(2)(iv). Wage and Tax Statement, online for the current year as
well as for prior years. After logging into BSO, navigate to
Limit on health flexible spending arrangement (FSA). the Electronic Wage Reporting home page and click on
For 2023, a cafeteria plan may not allow an employee to the “Forms W-2c/W-3c Online” tab. Also see E-filing and
request salary reduction contributions for a health FSA in E-filing Forms W-2c and W-3c.
excess of $3,050. The salary reduction contribution
limitation of $3,050 does not include any amount carried Tax relief for victims of terrorist attacks. Disability
over from a previous year. For more information, see payments for injuries incurred as a direct result of a
Health flexible spending arrangement (FSA). terrorist attack directed against the United States (or its
allies) are not included in income. Because federal
income tax withholding is required only when a payment is

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

includable in income, no federal income tax should be For more information about e-filing Forms W-2 or W-2c
withheld from these payments. and a link to the BSO website, visit the SSA’s Employer
W-2 Filing Instructions & Information website at SSA.gov/
Distributions from governmental section 457(b)
employer.
plans of state and local agencies. Generally, report
distributions from section 457(b) plans of state and local In a few situations, reporting instructions vary
agencies on Form 1099-R, Distributions From Pensions, depending on the filing method you choose. For example,
Annuities, Retirement or Profit-Sharing Plans, IRAs, you can include every type of box 12 amount in one
Insurance Contracts, etc. See Notice 2003-20 on employee wage record if you upload an electronic file. If
page 894 of Internal Revenue Bulletin 2003-19 at you file on paper or create Forms W-2 online, you can
IRS.gov/pub/irs-irbs/irb03-19.pdf. include only four box 12 amounts per Form W-2. See the
Earned income credit (EIC) notice (not applicable to TIP for Box 12—Codes under Specific Instructions for
Forms W-2AS, W-2CM, W-2GU, and W-2VI). You must Form W-2.
notify employees who have no income tax withheld that Waiver from e-filing. If you are required to e-file, you
they may be able to claim an income tax refund because can request a waiver from this requirement by filing Form
of the EIC. You can do this by using the official Internal 8508, Request for Waiver From Filing Information Returns
Revenue Service (IRS) Form W-2 with the EIC notice on Electronically. Submit Form 8508 to the IRS at least 45
the back of Copy B or a substitute Form W-2 with the days before the due date of Form W-2, or 45 days before
same statement. You must give your employee Notice you file your first Form W-2c. See Form 8508 for
797, Possible Federal Tax Refund Due to the Earned information about filing this form.
Income Credit (EIC), or your own statement that contains
Form 944. Use the “944” checkbox in box b of Form W-3
the same wording if (a) you use a substitute Form W-2
or Form W-3SS if you filed Form 944, Employer's
that does not contain the EIC notice, (b) you are not
ANNUAL Federal Tax Return. Also use the “944”
required to furnish Form W-2, or (c) you do not furnish a
checkbox if you filed Formulario 944(SP), the
timely Form W-2 to your employee. For more information,
Spanish-language version of Form 944.
see section 10 in Pub. 15 (Circular E), Employer's Tax
Guide. Forms W-2 for U.S. territories. In these instructions,
reference to Forms W-2 and W-3 includes Forms W-2AS,
Electronic statements for employees. Furnishing W-2CM, W-2GU, W-2VI, and W-3SS, unless otherwise
Copies B, C, and 2 of Forms W-2 to your employees noted. These instructions are not applicable to wage and
electronically may save you time and effort. See tax statements for Puerto Rico. Form W-2AS is used to
Furnishing Form W-2 to employees electronically in Pub. report American Samoa wages paid by American Samoa
15-A, Employer’s Supplemental Tax Guide, for additional employers, Form W-2CM is used to report the
information. Commonwealth of the Northern Mariana Islands (CNMI)
E-filing. The SSA encourages all employers to e-file. wages paid by CNMI employers, Form W-2GU is used to
E-filing can save you time and effort and helps ensure report Guam wages paid by Guam employers, and Form
accuracy. You must e-file if you are required to file 250 or W-2VI is used to report U.S. Virgin Islands (USVI) wages
more Forms W-2 or W-2c. If you are required to e-file but paid by USVI employers. Do not use these forms to report
fail to do so, you may incur a penalty. wages subject to U.S. income tax withholding. Instead,
The SSA’s BSO website makes e-filing easy by use Form W-2 to show U.S. income tax withheld. For
providing two ways to submit your Forms W-2 or W-2c employment-related information for employers with
Copy A and Forms W-3 or W-3c information. territory employees, see Pub. 80, Federal Tax Guide for
• If you need to file 50 or fewer Forms W-2 or 25 or fewer Employers in the U.S. Virgin Islands, Guam, American
Forms W-2c at a time, you can use BSO to create them Samoa, and the Commonwealth of the Northern Mariana
online. BSO guides you through the process of creating Islands.
Forms W-2 or W-2c, saving and printing them, and Military Spouses Residency Relief Act (MSRRA). You
submitting them to the SSA when you are ready. You do may be required to report wages and taxes on a form
not have to wait until you have submitted Forms W-2 or different from the form you generally use if an employee
W-2c to the SSA before printing copies for your claims residence or domicile under MSRRA in a different
employees. BSO generates Form W-3 or W-3c jurisdiction in one of the 50 states, the District of
automatically based on your Forms W-2 or W-2c. Columbia, American Samoa, the Commonwealth of the
• If you need to file more than 50 Forms W-2 or more Northern Mariana Islands, Guam, Puerto Rico, or the U.S.
than 25 Forms W-2c, BSO’s “file upload” feature might be Virgin Islands.
the best e-filing method for your business or organization.
Under MSRRA, the spouse of an active duty
To obtain file format specifications, visit the SSA’s website
servicemember (civilian spouse) may keep their prior
at SSA.gov/employer/EFW2&EFW2C.htm, and select the
residence or domicile for tax purposes (tax residence)
appropriate document. This information is also available when accompanying the servicemember spouse, who is
by calling the SSA’s Employer Reporting Service Center relocating under military orders, to a new military duty
at 800-772-6270 (toll free). station in one of the 50 states, the District of Columbia, or
If you e-file, do not file the same returns using a U.S. territory. Before relocating, both spouses must
! paper forms. have had the same tax residence.
CAUTION
For example, if a civilian spouse is working in Guam but
properly claims tax residence in one of the 50 states

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

under MSRRA, their income from services would not be Pub. 1223 prohibits advertising on Form W-2c. You
taxable income for Guam tax purposes. Federal income must not include advertising on any copy of Form W-2c,
taxes should be withheld and remitted to the IRS. State including coupons providing discounts on tax preparation
and local income taxes may need to be withheld and services attached to the employee copies. See Pub. 1223
remitted to state and local tax authorities. You should for further information.
consult with state, local, or U.S. territory tax authorities
regarding your withholding obligations under MSRRA. Need Help?
However, for any taxable year of the marriage, the Help with e-filing. If you have questions about how to
civilian spouse may elect to use the same residence for register or use BSO, call 800-772-6270 (toll free) to speak
purposes of taxation as the servicemember regardless of with an employer reporting technician at the SSA. The
the date on which the marriage of the spouse and the hours of operation are Monday through Friday from 7:00
servicemember occurred. a.m. to 7:00 p.m. Eastern time. If you experience
In the previous example, the spouse would be allowed problems using any of the services within BSO, call
to elect to use the same residence as the servicemember. 888-772-2970 (toll free) to speak with a systems operator
in technical support at the SSA. To speak with the SSA's
Nonqualified deferred compensation plans. You are Employer Services Liaison Officer (ESLO) for the U.S.
not required to complete box 12 with code Y (Deferrals Virgin Islands, call 212-264-4402 (not a toll-free number).
under a section 409A nonqualified deferred compensation For Guam, the Commonwealth of the Northern Mariana
plan). Section 409A provides that all amounts deferred Islands, or American Samoa, call 510-970-8247 (not a
under a nonqualified deferred compensation (NQDC) plan toll-free number). For all other employers, contact the
for all tax years are includible in gross income unless ESLO that services your region. For a complete telephone
certain requirements are satisfied. See Nonqualified listing, visit the SSA’s Employer W-2 Filing Instructions &
deferred compensation plans under Special Reporting Information website at SSA.gov/employer/
Situations for Form W-2 and the Nonqualified Deferred wage_reporting_specialists.htm.
Compensation Reporting Example Chart.
Information reporting customer service site. The IRS
Reporting the cost of group health insurance cover- operates a centralized customer service site to answer
age. You must report the cost of employer-sponsored questions about reporting on Forms W-2, W-3, 1099, and
health coverage in box 12 using code DD. However, other information returns. If you have questions about
transitional relief applies to certain employers and certain reporting on these forms, call 866-455-7438 (toll free).
types of plans. For more information, see Box 12—Codes
TTY/TDD equipment. Telephone help is available using
for Code DD—Cost of employer-sponsored health
TTY/TDD equipment for persons who are deaf, hard of
coverage.
hearing, or have a speech disability. If you have questions
Severance payments. Severance payments are wages about reporting on information returns (Forms 1096, 1097,
subject to social security and Medicare taxes. As noted in 1098, 1099, 3921, 3922, 5498, W-2, W-2G, and W-3), call
section 15 of Pub. 15 (Circular E), severance payments 304-579-4827.
are also subject to income tax withholding and FUTA tax.
Employment tax information. Detailed employment tax
Substitute forms. You may use an acceptable substitute information is given in:
form instead of an official IRS form. • Pub. 15 (Circular E), Employer's Tax Guide;
Form W-2. If you are not using the official IRS form to • Pub. 15-A, Employer's Supplemental Tax Guide;
furnish Form W-2 to employees or to file with the SSA, • Pub. 15-B, Employer's Tax Guide to Fringe Benefits;
you may use an acceptable substitute form that complies • Pub. 15-T, Federal Income Tax Withholding Methods;
with the rules in Pub. 1141, General Rules and • Pub. 51 (Circular A), Agricultural Employer's Tax Guide;
Specifications for Substitute Forms W-2 and W-3. Pub. and
1141 is a revenue procedure that explains the • Pub. 80 (Circular SS), Federal Tax Guide for Employers
requirements for format and content of substitute Forms in the U.S. Virgin Islands, Guam, American Samoa, and
W-2 and W-3. Your substitute forms must comply with the the Commonwealth of the Northern Mariana Islands.
requirements in Pub. 1141. You can also call the IRS with your employment tax
Pub. 1141 prohibits advertising on Form W-2. You must questions at 800-829-4933 or go to IRS.gov/
not include advertising on any copy of Form W-2, EmploymentTaxes.
including coupons providing discounts on tax preparation
services attached to the employee copies. See Pub. 1141 How To Get Forms and Publications
for further information. Internet. You can access IRS.gov 24 hours a day, 7 days
Form W-2c. If you are not using the official IRS form to a week to:
furnish Form W-2c to employees or to file with the SSA, • Download, view, and order tax forms, instructions, and
you may use an acceptable substitute form that complies publications.
with the rules in Pub. 1223, General Rules and • Access commercial tax preparation and e-file services.
Specifications for Substitute Forms W-2c and W-3c. Pub. • Research your tax questions online.
1223 is a revenue procedure that explains the • See answers to frequently asked tax questions.
requirements for format and content of substitute Forms • Search publications online by topic or keyword.
W-2c and W-3c. Your substitute forms must comply with • View Internal Revenue Bulletins published in the last
the requirements in Pub. 1223. few years.

-4- General Instructions for Forms W-2 and W-3 (2023)

• Sign up to receive local and national tax news by email. Only in very limited situations will you not have to file
You can order forms, instructions, and publications at Form W-2. This may occur if you were not required to
IRS.gov/OrderForms. For any other tax information, go to withhold any income tax, social security tax, or Medicare
IRS.gov/Help/Tax-Law-Questions. tax and you paid the employee less than $600, such as for
certain election workers and certain foreign agricultural
Do not print Copy A of Forms W-2, W-3, W-2c, or workers. See Election workers and Foreign agricultural
! W-3c from IRS.gov and then file them with the workers, later.
CAUTION SSA. The SSA accepts only e-filed reports and
Unless otherwise noted, references to Medicare tax
the official red-ink versions (or approved substitute
include Additional Medicare Tax.
versions) of these forms. For more information about
acceptable substitute versions, see Substitute forms. For If you are required to e-file Forms W-2 or want to take
information about e-filing, see E-filing advantage of the benefits of e-filing, see E-filing.
Who must file Form W-3. Anyone required to file Form
Common Errors on Forms W-2 W-2 must file Form W-3 to transmit Copy A of Forms W-2.
Forms W-2 provide information to your employees, the Make a copy of Form W-3 and a copy of each Form W-2
SSA, the IRS, and state and local governments. Avoid Copy A (For SSA) to keep for your records for at least 4
making the following errors, which cause processing years. Be sure to use Form W-3 for the correct year. If you
delays. are filing Forms W-2 electronically, also see E-filing.
Household employers. Even employers with only one
Do not: household employee must file Form W-3 to transmit Copy
• Download Copy A of Forms W-2, W-2AS, W-2GU, A of Form W-2. On Form W-3, check the “Hshld. emp.”
W-2VI, and W-3SS; or Form W-3 from IRS.gov and file checkbox in box b. For more information, see Schedule H
with the SSA. (Form 1040), Household Employment Taxes, and its
• Omit the decimal point and cents from entries. separate instructions. You must have an employer
• Make entries using ink that is too light. Use only black identification number (EIN). See Box b—Employer
ink. identification number (EIN).
• Make entries that are too small or too large. Use Who may sign Form W-3. A transmitter or sender
12-point Courier font, if possible. (including a service bureau, reporting agent, paying agent,
• Add dollar signs to the money-amount boxes. They or disbursing agent) may sign Form W-3 (or use its PIN to
have been removed from Copy A and are not required. e-file) for the employer or payer only if the sender satisfies
• Inappropriately check the “Retirement plan” checkbox both of the following.
in box 13. See Retirement plan. • It is authorized to sign by an agency agreement
• Misformat the employee's name in box e. Enter the (whether oral, written, or implied) that is valid under state
employee's first name and middle initial in the first box, law; and
their surname in the second box, and their suffix (such as • It writes “For (name of payer)” next to the signature
“Jr.”) in the third box (optional). (paper Form W-3 only).
• Enter the incorrect employer identification number (EIN)
or the employee’s SSN for the EIN. Use of a reporting agent or other third-party
• Cut, fold, or staple Copy A paper forms mailed to SSA. ! payroll service provider does not relieve an
• Mail any other copy other than Copy A of Form W-2 to CAUTION employer of the responsibility to ensure that

the SSA. Forms W-2 are furnished to employees and that Forms
W-2 and W-3 are filed with the SSA, correctly and on time.
General Instructions for Forms See Penalties for more information.

W-2 and W-3 Be sure that the payer's name and EIN on Forms W-2 and
W-3 are the same as those used on the Form 941,
Who must file Form W-2. You must file Form(s) W-2 if Employer's QUARTERLY Federal Tax Return; Form 943,
you have one or more employees to whom you made Employer's Annual Federal Tax Return for Agricultural
payments (including noncash payments) for the Employees; Form 944, Employer’s ANNUAL Federal Tax
employees’ services in your trade or business during Return; Form CT-1, Employer's Annual Railroad
2023. Retirement Tax Return; or Schedule H (Form 1040) filed
Complete and file Form W-2 for each employee for by or for the payer.
whom any of the following applies (even if the employee is
related to you). When to file. Mail or electronically file Copy A of Form(s)
• You withheld any income, social security, or Medicare W-2 and Form W-3 with the SSA by January 31, 2024.
tax from wages regardless of the amount of wages; or You may owe a penalty for each Form W-2 that you file
• You would have had to withhold income tax if the late. See Penalties. If you terminate your business, see
employee had claimed no more than one withholding Terminating a business.
allowance (for 2019 or earlier Forms W-4) or had not Extension of time to file Forms W-2 with the SSA.
claimed exemption from withholding on Form W-4; or You may request only one extension of time to file Form
• You paid $600 or more in wages even if you did not W-2 with the SSA by submitting a complete application on
withhold any income, social security, or Medicare tax. 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 form and

General Instructions for Forms W-2 and W-3 (2023) -5-

instructions for granting an extension applies. You must Virgin Islands Bureau of Internal Revenue
sign the application under penalties of perjury. Send the 6115 Estate Smith Bay
application to the address shown on Form 8809. You must Suite 225
request the extension before the due date of Forms W-2. St. Thomas, VI 00802
If the IRS grants your request for extension, you will have
an additional 30 days to file. The IRS will grant extensions For additional information about Form W-2VI, see
to file Forms W-2 only in limited cases for extraordinary BIR.VI.gov.
circumstances or catastrophe, such as a natural disaster Commonwealth of the Northern Mariana Islands.
or fire destroying the books and records needed for filing File Form OS-3710 and Copy 1 of Forms W-2CM at the
the forms. No additional extension of time to file will be following address.
allowed. See Form 8809 for details.
Division of Revenue and Taxation
Even if you request and are granted an extension
Commonwealth of the Northern Mariana Islands
! of time to file Forms W-2, you must still furnish
CAUTION Forms W-2 to your employees by January 31,
P.O. Box 5234 CHRB
Saipan, MP 96950
2024. But see Extension of time to furnish Forms W-2 to
employees.
Forms OS-3710 and W-2CM are not IRS forms. For
additional information about Form W-2CM, see
Where to file paper Forms W-2 and W-3. File Copy A Finance.gov.mp/forms.php.
of Form(s) W-2 with Form W-3 at the following address.
Shipping and mailing. If you file more than one type of
Social Security Administration employment tax form, group Forms W-2 of the same type
Direct Operations Center with a separate Form W-3 for each type, and send them in
Wilkes-Barre, PA 18769-0001 separate groups. See the specific instructions for Box
b—Kind of Payer and Box b—Kind of Employer in Specific
If you use “Certified Mail” to file, change the ZIP Instructions for Form W-3.
TIP code to “18769-0002.” If you use an IRS-approved Prepare and file Forms W-2 either alphabetically by
private delivery service, add “Attn: W-2 Process, employees' last names or numerically by employees'
1150 E. Mountain Dr.” to the address and change the ZIP social security numbers. Do not staple or tape Form W-3
code to “18702-7997.” Go to IRS.gov/PDS for a list of to the related Forms W-2 or Forms W-2 to each other.
IRS-approved private delivery services. These forms are machine read. Staple holes or tears
interfere with machine reading. Also do not fold Forms
Do not send cash, checks, money orders, or W-2 and W-3. Send the forms to the SSA in a flat mailing.
! other forms of payment with the Forms W-2
CAUTION and W-3 that you submit to the SSA. Furnishing Copies B, C, and 2 to employees.
Employment tax forms (for example, Form 941 or Form Generally, you must furnish Copies B, C, and 2 of Form
943), remittances, and Forms 1099 must be sent to the W-2 to your employees by January 31, 2024. You will
IRS. meet the “furnish” requirement if the form is properly
addressed and mailed on or before the due date.
Copy 1. Send Copy 1 of Form W-2, if required, to your If employment ends before December 31, 2023, you
state, city, or local tax department. For more information may furnish copies to the employee at any time after
concerning Copy 1 (including how to complete boxes 15 employment ends, but no later than January 31, 2024. If
through 20), contact your state, city, or local tax an employee asks for Form W-2, give them the completed
department. copies within 30 days of the request or within 30 days of
American Samoa. File Copy 1 of Form W-3SS and the final wage payment, whichever is later. However, if
Forms W-2AS at the following address. you terminate your business, see Terminating a business.
American Samoa Tax Office You may furnish Forms W-2 to employees on IRS
Executive Office Building official forms or on acceptable substitute forms. See
First Floor Substitute forms. Be sure the Forms W-2 you provide to
Pago Pago, AS 96799 employees are clear and legible and comply with the
requirements in Pub. 1141.
Guam. File Copy 1 of Form W-3SS and Forms W-2GU Forms W-2 that include logos, slogans, and
at the following address. advertisements (including advertisements for tax
preparation software) may be considered as suspicious or
Guam Department of Revenue and Taxation altered Forms W-2 (also known as “questionable Forms
P.O. Box 23607 W-2”). An employee may not recognize the importance of
Barrigada, GU 96921 the employee copy for tax reporting purposes due to the
use of logos, slogans, and advertisements. Therefore, the
For additional information about Form W-2GU, see IRS has determined that logos, slogans, and advertising
GuamTax.com. will not be allowed on Forms W-3, Copy A of Forms W-2,
U.S. Virgin Islands. File Copy 1 of Form W-3SS and or any employee copies reporting wages paid. Limited
Forms W-2VI at the following address. exceptions on this prohibition exist with respect to
employee copies. See Pub. 1141 for more information.

-6- General Instructions for Forms W-2 and W-3 (2023)

 Extension of time to furnish Forms W-2 to SSN for each employee. You may truncate the
employees. You may request an extension of time to employee’s SSN on employee copies of Forms W-2. Do
furnish Forms W-2 to employees by faxing a letter to: not truncate an employee’s SSN on Copy A of Forms
W-2. Go to Social security numbers, earlier, for more
Internal Revenue Service Technical Services information. Also see Regulations section 31.6051-1(a)(1)
Operation (i)(B) and 31.6051-2(a). For information about verifying
Attn: Extension of Time Coordinator SSNs, see section 4 of Pub. 15 (Circular E) or visit the
Fax: 877-477-0572 (International Fax: SSA's Employer W-2 Filing Instructions & Information
304-579-4105) website at SSA.gov/employer.

Fax your letter on or before the due date for furnishing Form W-2 e-filed with the SSA must contain the
Forms W-2 to employees. It must include: ! employer’s complete EIN and the complete SSN
CAUTION of the employee. Do not truncate EINs or SSNs on
• Your name and address, Copy A.
• Your EIN,
• A statement that you are requesting an extension to
furnish “Forms W-2” to employees, Special Reporting Situations for Form
• The reason for delay, and
• Your signature or that of your authorized agent. W-2
See the 2023 General Instructions for Certain Adoption benefits. Amounts paid or expenses incurred
Information Returns. by an employer for qualified adoption expenses under an
Requests for an extension of time to furnish adoption assistance program are not subject to federal
Forms W-2 to employees are not automatically income tax withholding and are not reportable in box 1.
!
CAUTION granted. If approved, an extension will generally However, these amounts (including adoption benefits paid
be granted for no more than 15 days from the due date, from a section 125 (cafeteria) plan, but not including
unless the need for up to a total of 30 days is clearly adoption benefits forfeited from a cafeteria plan) are
shown. subject to social security, Medicare, and railroad
retirement taxes and must be reported in boxes 3 and 5.
Undeliverable Forms W-2. Keep for 4 years any (Use box 14 if railroad retirement taxes apply.) Also, the
employee copies of Forms W-2 that you tried to but could total amount, including any amount in excess of the
not deliver. However, if the undelivered Form W-2 can be $15,950 exclusion, must be reported in box 12 with code
produced electronically through April 15th of the fourth T. For more information on reporting adoption benefits in
year after the year at issue, you do not need to keep box 12, see Code T—Adoption benefits, later.
undeliverable employee copies. Do not send
For more information on adoption benefits, see Notice
undeliverable employee copies of Forms W-2 to the
97-9, 1997-1 C.B. 365, which is on page 35 of Internal
Social Security Administration (SSA).
Revenue Bulletin 1997-2 at IRS.gov/pub/irs-irbs/
Taxpayer identification numbers (TINs). Employers irb97-02.pdf. Advise your employees to see the
use an employer identification number (EIN) Instructions for Form 8839, Qualified Adoption Expenses.
(XX-XXXXXXX). Employees use a social security number
Agent reporting. An agent who has an approved Form
(SSN) (XXX-XX-XXXX). When you list a number, separate
2678, Employer/Payer Appointment of Agent, should
the 9 digits properly to show the kind of number.
enter the following in box c of Form W-2.
Do not accept an IRS individual taxpayer identification
(Name of agent)
number (ITIN) in place of an SSN for employee
Agent for (name of employer)
identification or for Form W-2 reporting. An ITIN is
Address of agent
available only to resident and nonresident aliens who are
not eligible for U.S. employment and need identification Each Form W-2 should reflect the EIN of the agent in
for other tax purposes. You can identify an ITIN because it box b. An agent files one Form W-3 for all of the Forms
is a 9-digit number formatted like an SSN beginning with W-2 and enters its own information in boxes e, f, and g of
the number “9” and with a number in one of the following Form W-3 as it appears on the agent's related
ranges in the fourth and fifth digits: 50–65, 70–88, 90–92, employment tax returns (for example, Form 941). Enter
and 94–99 (for example, 9NN-70-NNNN). Do not auto the client-employer's EIN in box h of Form W-3 if the
populate an ITIN into box a, Employee's social security Forms W-2 relate to only one employer (other than the
number, on Form W-2. See section 4 of Pub. 15 (Circular agent); if not, leave box h blank.
E). If the agent (a) is acting as an agent for two or more
An individual with an ITIN who later becomes employers or is an employer and is acting as an agent for
! eligible to work in the United States must obtain another employer, and (b) pays social security wages to
CAUTION an SSN from the Social Security Administration. an individual on behalf of more than one employer, the
agent should file separate Forms W-2 for the affected
The IRS uses SSNs to check the payments that you employee reflecting the wages paid by each employer.
report against the amounts shown on employees' tax See Rev. Proc. 2013-39, 2013-52 I.R.B. 830, available
returns. The SSA uses SSNs to record employees' at IRS.gov/irb/2013-52_IRB#RP-2013-39 and the Form
earnings for future social security and Medicare benefits. 2678 instructions for procedures to be followed in
When you prepare Form W-2, be sure to show the correct applying to be an agent.

General Instructions for Forms W-2 and W-3 (2023) -7-

 Generally, an agent is not responsible for withhold social security and Medicare taxes on the
TIP refunding excess social security or railroad payment and report the payment on the employee's Form
retirement (RRTA) tax withheld from employees. If W-2 only as social security and Medicare wages to ensure
an employee worked for more than one employer during proper social security and Medicare credit is received. On
2023 and had more than $9,932.40 in social security the employee's Form W-2, show the payment as social
and/or Tier 1 RRTA tax withheld, they should claim the security wages (box 3) and Medicare wages and tips
excess on the appropriate line of Form 1040, 1040-SR, or (box 5) and the social security and Medicare taxes
1040-NR. If an employee had more than $5,821.20 in Tier withheld in boxes 4 and 6. Do not show the payment in
2 RRTA tax withheld from more than one employer, the box 1.
employee should claim a refund on Form 843, Claim for If you made the payment after the year of death, do not
Refund and Request for Abatement. report it on Form W-2, and do not withhold social security
and Medicare taxes.
Archer MSA. An employer's contribution to an
employee's Archer MSA is not subject to federal income Whether the payment is made in the year of death or
tax withholding or social security, Medicare, or railroad after the year of death, you must also report it in box 3 of
retirement taxes if it is reasonable to believe at the time of Form 1099-MISC, Miscellaneous Information, for the
the payment that the contribution will be excludable from payment to the estate or beneficiary. Use the name and
the employee's income. However, if it is not reasonable to taxpayer identification number (TIN) of the payment
believe at the time of payment that the contribution will be recipient on Form 1099-MISC. However, if the payment is
excludable from the employee's income, employer a reissuance of wages that were constructively received
contributions are subject to income tax withholding and by the deceased individual while they were still alive, do
social security and Medicare taxes (or railroad retirement not report it on Form 1099-MISC.
taxes, if applicable) and must be reported in boxes 1, 3, Example. Before Employee A's death on June 15,
and 5. (Use box 14 if railroad retirement taxes apply.) 2023, A was employed by Employer X and received
You must report all employer contributions to an Archer $10,000 in wages on which federal income tax of $1,500
MSA in box 12 of Form W-2 with code R. Employer was withheld. When A died, X owed A $2,000 in wages
contributions to an Archer MSA that are not excludable and $1,000 in accrued vacation pay. The total of $3,000
from the income of the employee must also be reported in (less the social security and Medicare taxes withheld) was
boxes 1, 3, and 5 (box 14 if railroad retirement taxes paid to A's estate on July 20, 2023. Because X made the
apply). payment during the year of death, X must withhold social
security and Medicare taxes on the $3,000 payment and
An employee's contributions to an Archer MSA are
must complete Form W-2 as follows.
includible in income as wages and are subject to federal
income tax withholding and social security and Medicare
• Box a— Employee A's SSN
taxes (or railroad retirement taxes, if applicable).
• Box e— Employee A's name
Employee contributions are deductible, within limits, on
• Box f— Employee A's address
the employee's Form 1040 or 1040-SR.
• Box 1— 10000.00 (does not include the $3,000
accrued wages and vacation pay)
For more information, see Pub. 969, Health Savings • Box 2— 1500.00
Accounts and Other Tax-Favored Health Plans, and • Box 3— 13000.00 (includes the $3,000 accrued wages
Notice 96-53, which is found on page 5 of Internal and vacation pay)
Revenue Bulletin 1996-51 at IRS.gov/pub/irs-irbs/ • Box 4— 806.00 (6.2% of the amount in box 3)
irb96-51.pdf. • Box 5— 13000.00 (includes the $3,000 accrued wages
Clergy and religious workers. For certain members of and vacation pay)
the clergy and religious workers who are not subject to • Box 6— 188.50 (1.45% of the amount in box 5)
social security and Medicare taxes as employees, boxes Employer X must also complete Form 1099-MISC
3 and 5 of Form W-2 should be left blank. You may as follows.
include a minister's parsonage and/or utilities allowance in
!
CAUTION
box 14. For information on the rules that apply to ministers • Boxes for recipient’s name, address, and TIN—the
and certain other religious workers, see Pub. 517, Social estate's or beneficiary’s name, address, and TIN.
Security and Other Information for Members of the Clergy • Box 3: 3000.00 (Even though amounts were withheld
and Religious Workers and section 4 in Pub. 15-A. for social security and Medicare taxes, the gross amount
Deceased employee's wages. If an employee dies is reported here.)
during the year, you must report the accrued wages,
If Employer X made the payment after the year of
vacation pay, and other compensation paid after the date
death, the $3,000 would not be subject to social security
of death. Also report wages that were available to the
and Medicare taxes and would not be shown on Form
employee while they were alive, regardless of whether
W-2. However, the employer would still file Form
they were actually in the possession of the employee, as
1099-MISC.
well as any other regular wage payment, even if you may
have to reissue the payment in the name of the estate or Designated Roth contributions. Under section 402A, a
beneficiary. participant in a section 401(k) plan, under a 403(b) salary
If you made the payment after the employee's death reduction agreement, or in a governmental 457(b) plan
but in the same year the employee died, you must that includes a qualified Roth contribution program, may
elect to make designated Roth contributions to the plan or

-8- General Instructions for Forms W-2 and W-3 (2023)

program in lieu of elective deferrals. Designated Roth applicable). (Use box 14 if railroad retirement taxes
contributions are subject to federal income tax withholding apply.)
and social security and Medicare taxes (and railroad For more information on accountable plans,
retirement taxes, if applicable) and must be reported in nonaccountable plans, amounts treated as substantiated
boxes 1, 3, and 5. (Use box 14 if railroad retirement taxes under a per diem or mileage allowance, the standard
apply.) mileage rate, the per diem substantiation method, and the
Section 402A requires separate reporting of the yearly high-low substantiation method, see Pub. 463, Travel,
designated Roth contributions. Designated Roth Gift, and Car Expenses; and section 5 of Pub. 15 (Circular
contributions to 401(k) plans will be reported using code E).
AA in box 12; designated Roth contributions under 403(b) Employee's social security and Medicare taxes (or
salary reduction agreements will be reported using code railroad retirement taxes, if applicable) paid by em-
BB in box 12; and designated Roth contributions under a ployer. If you paid your employee's share of social
governmental section 457(b) plan will be reported using security and Medicare taxes rather than deducting them
code EE in box 12. For reporting instructions, see the from the employee's wages, you must include these
box 12 instructions for Code AA—Designated Roth
payments as wages subject to federal (or American
contributions under a section 401(k) plan, Code
Samoa, CNMI, Guam, or U.S. Virgin Islands) income tax
BB—Designated Roth contributions under a section
withholding and social security, Medicare, and federal
403(b) plan, and Code EE—Designated Roth unemployment (FUTA) taxes. If you paid your employee's
contributions under a governmental section 457(b) plan. share of railroad retirement taxes, you must include these
Educational assistance programs. Employer-provided amounts as compensation subject to railroad retirement
educational assistance up to a maximum of $5,250 is taxes. The amount to include as wages and/or
excludable from an employee's wages only if assistance compensation is determined by using the formula
is provided under an educational assistance program contained in the discussion of Employee's Portion of
under section 127. See Pub. 970, Tax Benefits for Taxes Paid by Employer in section 7 of Pub. 15-A and in
Education, and section 2 of Pub. 15-B for more Rev. Proc. 83-43, 1983-24 I.R.B. 60.
information. Also see Box 1—Wages, tips, other
This does not apply to household and agricultural
compensation.
! employers. If you pay a household or agricultural
Election workers. Report on Form W-2 payments of CAUTION employee's social security and Medicare taxes,

$600 or more to election workers for services performed you must include these payments in the employee's
in state, county, and municipal elections. File Form W-2 wages for income tax withholding purposes. However, the
for payments of less than $600 paid to election workers if wage increase due to the tax payments is not subject to
social security and Medicare taxes were withheld under a social security, Medicare, or FUTA taxes. For information
section 218 (Social Security Act) agreement. Do not on completing Forms W-2 and W-3 in this situation, see
report election worker payments on Form 1099-MISC. the Instructions for Schedule H (Form 1040) and section 4
If the election worker is employed in another capacity of Pub. 51 (Circular A), Agricultural Employer’s Tax Guide.
with the same government entity, see Rev. Rul. 2000-6,
which is on page 512 of Internal Revenue Bulletin 2000-6 Federal employers in the CNMI. The U.S. Treasury
at IRS.gov/pub/irs-irbs/irb00-06.pdf. Department and the CNMI Division of Revenue and
Taxation entered into an agreement under 5 U.S.C.
Employee business expense reimbursements. section 5517 (“5517 agreement”) in December 2006.
Reimbursements to employees for business expenses Under this agreement, all federal employers (including the
must be reported as follows. Department of Defense) are required to withhold CNMI
• Generally, payments made under an accountable plan income taxes, rather than federal income taxes, and
are excluded from the employee's gross income and are deposit the CNMI taxes with the CNMI Treasury for
not reported on Form W-2. However, if you pay a per diem employees who are subject to CNMI taxes and whose
or mileage allowance and the amount paid for regular place of federal employment is in the CNMI.
substantiated miles or days traveled exceeds the amount Federal employers are also required to file quarterly and
treated as substantiated under IRS rules, you must report annual reports with the CNMI Division of Revenue and
as wages on Form W-2 the amount in excess of the Taxation. For questions, contact the CNMI Division of
amount treated as substantiated. The excess amount is Revenue and Taxation.
subject to income tax withholding and social security and
Federal employers may use Form W-2 (rather than
Medicare taxes (or railroad retirement taxes, if
Forms W-2CM or OS-3710) to report income taxes
applicable). Report the amount treated as substantiated
withheld and paid to CNMI, as well as to report social
(that is, the nontaxable portion) in box 12 using code L.
security and Medicare taxes. Use the state boxes 15, 16,
See the box 12 instructions for Code L—Substantiated
and 17 for CNMI income tax reporting. See the
employee business expense reimbursements. (Use instructions for boxes 15, 16, and 17 under Boxes 15
box 14 if railroad retirement taxes apply.)
through 20—State and local income tax information, later.
• Payments made under a nonaccountable plan are This rule applies only to income tax reporting. Federal
reported as wages on Form W-2 and are subject to employers should withhold and report social security and
federal income tax withholding and social security and Medicare taxes for these employees in the same way as
Medicare taxes (or railroad retirement taxes, if for other federal employees. For more information, go to

General Instructions for Forms W-2 and W-3 (2023) -9-

IRS.gov/Individuals/International-Taxpayers/Special- as usual and report them in boxes 2, 4, and 6,
Withholding-Rules-for-US-Federal-Agency-Employers- respectively. (Use box 14 if railroad retirement taxes
With-Employees-in-CNMI-or-Puerto-Rico. apply.) Excess parachute payments are also subject to a
20% excise tax. If the excess payments are considered
Foreign agricultural workers. You must report
compensation of $600 or more paid in a calendar year to wages, withhold the 20% excise tax and include it in box 2
as income tax withheld. Also report the excise tax in
an H-2A visa agricultural worker for agricultural labor. If
the H-2A visa agricultural worker furnishes a valid box 12 with code K. For definitions and additional
information, see Regulations section 1.280G-1 and Rev.
taxpayer identification number, report these payments in
box 1 of Form W-2. If the worker does not furnish a valid Proc. 2003-68, 2003-34 I.R.B. 398, available at
IRS.gov/irb/2003-34_IRB#RP-2003-68.
taxpayer identification number, report the payments on
Form 1099-MISC. See Form 1099-MISC below. Government employers. Federal, state, and local
On Form W-2, no amount should be reported in box 3 governmental agencies have two options for reporting
or 5. In most cases, you do not need to withhold federal their employees' wages that are subject to only Medicare
income tax from compensation paid to H-2A visa tax for part of the year and both social security and
agricultural workers. Employers should withhold federal Medicare taxes for part of the year.
income tax only if the H-2A visa agricultural worker and The first option (which the SSA prefers) is to file a
the employer agree to withhold. The H-2A visa agricultural single set of Forms W-2 per employee for the entire year,
worker must provide a completed Form W-4. If the even if only part of the year's wages are subject to both
employer withholds income tax, the employer must report social security and Medicare taxes. Check “941” (or “944”)
the tax withheld in box 2 of Form W-2 and on line 8 of in box b of Form W-3 or check “941-SS” in box b of Form
Form 943. See Pub. 51 (Circular A). W-3SS. The wages in box 5 of Form W-2 must be equal to
Form 1099-MISC. If the H-2A visa agricultural worker or greater than the wages in box 3 of Form W-2.
fails to furnish a taxpayer identification number to the The second option is to file one set of Forms W-2 for
employer, and the total annual payments made to the wages subject only to Medicare tax and another set for
H-2A visa agricultural worker are $600 or more, the wages subject to both social security and Medicare taxes.
employer must begin backup withholding on the payments Use a separate Form W-3 to transmit each set of Forms
made until the H-2A visa agricultural worker furnishes a W-2. For the Medicare-only Forms W-2, check “Medicare
valid taxpayer identification number. Employers must govt. emp.” in box b of Form W-3. For the Forms W-2
report the compensation paid and any backup withholding showing wages subject to both social security and
on Forms 1099-MISC and Form 945, Annual Return of Medicare taxes, check “941” (or “944”) in box b of Form
Withheld Federal Income Tax. See the current W-3 or check “941-SS” in box b of Form W-3SS. The
Instructions for Forms 1099-MISC and 1099-NEC and the wages in box 5 of Form W-2 must be equal to or greater
current Instructions for Form 945. than the wages in box 3 of Form W-2.
For more information, go to IRS.gov/H2A. Group-term life insurance. You must include in boxes
Fringe benefits. Include all taxable fringe benefits in 1, 3, and 5 (or 14, if railroad retirement taxes apply) the
box 1 of Form W-2 as wages, tips, and other cost of group-term life insurance that is more than the cost
compensation and, if applicable, in boxes 3 and 5 as of $50,000 of coverage, reduced by the amount the
social security and Medicare wages. Although not employee paid toward the insurance. Use Table 2-2 in
required, you may include the total value of fringe benefits Pub. 15-B to determine the cost of the insurance. Also
in box 14 (or on a separate statement). However, if you show the amount in box 12 with code C. For employees,
provided your employee a vehicle, you must include the you must withhold social security and Medicare taxes, but
value of any personal use in boxes 1, 3, and 5 of Form not federal income tax. For coverage provided to former
W-2. You must withhold social security and Medicare tax, employees, the former employees must pay the employee
but you have the option not to withhold federal income tax part of social security and Medicare taxes (or railroad
if you notify the employee and include the value of the retirement taxes, if applicable) on the taxable cost of
benefit in boxes 1, 3, 5, and 14. See Pub. 15-B for more group-term life insurance over $50,000 on Form 1040 or
information. 1040-SR. You are not required to collect those taxes.
However, you must report the uncollected social security
Public Law 115-97, section 11045, does not
tax (or railroad retirement taxes, if applicable) with code M
! permit employees to deduct unreimbursed
and the uncollected Medicare tax (or RRTA Medicare tax,
CAUTION employee business expenses for tax years 2018
if applicable) with code N in box 12 of Form W-2.
through 2025. If you included 100% of the vehicle’s
However, any uncollected Additional Medicare Tax (on
annual lease value in the employee’s income, the
the cost of group-term life insurance, which, in
employee will not be able to deduct expenses attributable
combination with other wages, is in excess of $200,000) is
to the business use of an employer-provided vehicle. See
not reported with code N in box 12.
Pub. 15-B.
Health flexible spending arrangement (FSA). For plan
Golden parachute payments (not applicable to year 2023, a cafeteria plan may not allow an employee to
Forms W-2AS, W-2CM, W-2GU, or W-2VI). Include any request salary reduction contributions for a health FSA in
golden parachute payments in boxes 1, 3, and 5 of Form excess of $3,050 (as indexed for inflation).
W-2. Withhold federal income, social security, and If a cafeteria plan timely complies with the written plan
Medicare taxes (or railroad retirement taxes, if applicable) requirement limiting health FSA salary reduction

-10- General Instructions for Forms W-2 and W-3 (2023)

contributions, but one or more employees are erroneously the new copy and furnish it to the employee. You do not
allowed to elect a salary reduction of more than $3,050 for have to add “REISSUED STATEMENT” on Forms W-2
the plan year, the cafeteria plan will continue to be a provided to employees electronically. Do not send Copy A
section 125 cafeteria plan for the plan year if: of the reissued Form W-2 to the SSA. Employers are not
• The terms of the plan apply uniformly to all participants, prohibited (by the Internal Revenue Code) from charging
• The error results from a reasonable mistake by the a fee for the issuance of a duplicate Form W-2.
employer (or the employer’s agent) and is not due to Military differential pay. Employers paying their
willful neglect by the employer (or the employer’s agent), employees while they are on active duty in the U.S.
and uniformed services should treat these payments as
• Salary reduction contributions in excess of $3,050 are wages. Differential wage payments made to an individual
paid to the employee and reported as wages for income
while on active duty for periods scheduled to exceed 30
tax withholding and employment tax purposes on the
days are subject to income tax withholding, but are not
employee’s Form W-2 (or Form W-2c) for the employee’s
subject to social security, Medicare, and unemployment
taxable year in which, or with which, ends the cafeteria
taxes. Report differential wage payments in box 1 and any
plan year in which the correction is made.
federal income tax withholding in box 2. Differential wage
The salary reduction contribution limit of $3,050 payments made to an individual while on active duty for
! does not include any amount (up to $610) carried 30 days or less are subject to income tax withholding,
CAUTION over from a previous year. social security, Medicare, and unemployment taxes and
are reported in boxes 1, 3, and 5. See Rev. Rul. 2009-11,
For more information, see Notice 2013-71, 2013-47 2009-18 I.R.B. 896, available at IRS.gov/irb/
I.R.B. 532, available at IRS.gov/irb/ 2009-18_IRB#RR-2009-11.
2013-47_IRB#NOT-2013-71.
Moving expenses. Effective for tax years 2018 through
Health savings account (HSA). An employer's 2025, the exclusion for qualified moving expense
contribution (including an employee's contributions reimbursements applies only to members of the U.S.
through a cafeteria plan) to an employee's HSA is not Armed Forces on active duty who move pursuant to a
subject to federal income tax withholding or social military order and incident to a permanent change of
security, Medicare, or railroad retirement taxes (or FUTA station. All other employees have only nonqualified
tax) if it is reasonable to believe at the time of the payment moving expenses and expense reimbursements subject
that the contribution will be excludable from the to tax and withholding.
employee's income. However, if it is not reasonable to
believe at the time of payment that the contribution will be Report qualified moving expenses for members of the
excludable from the employee's income, employer Armed Forces as follows.
contributions are subject to federal income tax • Qualified moving expenses that an employer paid to a
withholding, social security and Medicare taxes (or third party on behalf of the employee (for example, to a
railroad retirement taxes, if applicable), and FUTA tax, moving company), and services that an employer
and must be reported in boxes 1, 3, and 5 (use box 14 if furnished in kind to an employee, are not reported on
railroad retirement taxes apply); and on Form 940, Form W-2.
Employer's Annual Federal Unemployment (FUTA) Tax • Qualified moving expense reimbursements paid directly
Return. to an employee by an employer are reported only in
box 12 of Form W-2 with code P.
You must report all employer contributions (including
Nonqualified moving expenses and expense
an employee's contributions through a cafeteria plan) to
an HSA in box 12 of Form W-2 with code W. Employer reimbursements are reported in boxes 1, 3, and 5 (use
contributions to an HSA that are not excludable from the box 14 if railroad retirement taxes apply) of Form W-2.
income of the employee must also be reported in boxes 1, These amounts are subject to federal income tax
withholding and social security and Medicare taxes (or
3, and 5. (Use box 14 if railroad retirement taxes apply.)
railroad retirement taxes, if applicable).
An employee's contributions to an HSA (unless made
through a cafeteria plan) are includible in income as Nonqualified deferred compensation plans. Section
wages and are subject to federal income tax withholding 409A provides that all amounts deferred under a
and social security and Medicare taxes (or railroad nonqualified deferred compensation (NQDC) plan for all
retirement taxes, if applicable). Employee contributions tax years are currently includible in gross income to the
are deductible, within limits, on the employee's Form 1040 extent not subject to a substantial risk of forfeiture and not
or 1040-SR. For more information about HSAs, see previously included in gross income, unless certain
Notice 2004-2, Notice 2004-50, and Notice 2008-52. requirements are met. Generally, section 409A is effective
Notice 2004-2, 2004-2 I.R.B. 269, is available at with respect to amounts deferred in tax years beginning
IRS.gov/irb/2004-02_IRB#NOT-2004-2. Notice 2004-50, after December 31, 2004, but deferrals made before that
2004-33 I.R.B. 196, is available at IRS.gov/irb/ year may be subject to section 409A under some
2004-33_IRB#NOT-2004-50. Notice 2008-52, 2008-25 circumstances.
I.R.B. 1166, is available at IRS.gov/irb/ It is not necessary to show amounts deferred during the
2008-25_IRB#NOT-2008-52. Also see Form 8889, Health year under an NQDC plan subject to section 409A. If you
Savings Accounts (HSAs), and Pub. 969. report section 409A deferrals, show the amount in box 12
Lost Form W-2—Reissued statement. If an employee using code Y. For more information, see Notice 2008-115,
loses a Form W-2, write “REISSUED STATEMENT” on

General Instructions for Forms W-2 and W-3 (2023) -11-

2008-52 I.R.B. 1367, available at IRS.gov/irb/ (excluding Additional Medicare Tax), and any Additional
2008-52_IRB#NOT-2008-115. Medicare Tax withheld for each employee covered by
Income included under section 409A from an NQDC RRTA tax. Label them “RRTA compensation,” “Tier 1 tax,”
plan will be reported in box 1 and in box 12 using code Z. “Tier 2 tax,” “Medicare tax,” and “Additional Medicare
This income is also subject to an additional tax of 20% Tax.” Include tips reported by the employee to the
that is reported on Form 1040 or 1040-SR. For more employer in “RRTA compensation.”
information on amounts includible in gross income and Employers should withhold Tier 1 and Tier 2 RRTA
reporting requirements, see Notice 2008-115, available at taxes on all money remuneration that stems from the
IRS.gov/irb/2008-52_IRB#NOT-2008-115. For information employer–employee relationship, including award
on correcting failures to comply with section 409A and payments to employees to compensate for working time
related reporting, see Notice 2008-113, 2008-51 I.R.B. lost due to an on-the-job injury and lump-sum payments
1305, available at IRS.gov/irb/ made to unionized employees upon ratification of
2008-51_IRB#NOT-2008-113; Notice 2010-6, 2010-3 collective bargaining agreements.
I.R.B. 275, available at IRS.gov/irb/ Employee stock options are not “money remuneration”
2010-03_IRB#NOT-2010-6; and Notice 2010-80, 2010-51 subject to the RRTA. Railroad employers should not
I.R.B. 853, available at IRS.gov/irb/ withhold Tier 1 and Tier 2 taxes when employees covered
2010-51_IRB#NOT-2010-80. by the RRTA exercise stock options. Employers should
See the Nonqualified Deferred Compensation still withhold federal income tax on taxable compensation
Reporting Example Chart. from railroad employees exercising their stock options.
Qualified equity grants under section 83(i). Report For employees covered by social security and
the amount includible in gross income from qualified Medicare. Check the “941” checkbox on Form W-3, box
equity grants under section 83(i)(1)(A) for the calendar b, “Kind of Payer,” to transmit Forms W-2 with box 1
year in box 12 using code GG. This amount is wages for wages and box 2 tax withholding for employees covered
box 1 and you must withhold income tax under section by social security and Medicare. Use Form W-2, boxes 3,
3401(i) at the rate and manner prescribed in section 4, 5, 6, and 7, to report each employee’s social security
3401(t). You must withhold at the maximum rate of tax and Medicare wages and taxes, including Additional
without regard to the employee’s Form W-4. Social Medicare Tax. These boxes are not to be used to report
security and Medicare taxation of the deferral stock is not railroad retirement compensation and taxes.
affected by these rules. See Notice 2018-97, 2018-52 Railroad employers must withhold social security
I.R.B. 1062, available at IRS.gov/irb/ ! and Medicare taxes from taxable compensation of
2018-52_IRB#NOT-2018-97. CAUTION employees covered by social security and

Qualified small employer health reimbursement ar- Medicare who are exercising their employee stock
rangement. Use box 12, code FF, to report the total options.
amount of permitted benefits under a qualified small
Repayments. If an employee repays you for wages
employer health reimbursement arrangement (QSEHRA).
received in error, do not offset the repayments against
QSEHRAs allow eligible employers to pay or reimburse
current year wages unless the repayments are for
medical care expenses of eligible employees after the
amounts received in error in the current year. Repayments
employees provide proof of coverage. The maximum
made in the current year, but related to a prior year or
reimbursement for an eligible employee under a QSEHRA
years, must be repaid in gross, not net, and require
for 2023 is $5,850 ($11,800 if it also provides
special tax treatment by employees in some cases. You
reimbursements for family members). For more
may advise the employee of the total repayments made
information about QSEHRAs, see Notice 2017-67,
during the current year and the amount (if any) related to
2017-47 I.R.B. 517, available at IRS.gov/irb/
prior years. This information will help the employee
2017-47_IRB#NOT-2017-67 and Pub. 15-B under
account for such repayments on their federal income tax
Accident and Health Benefits. For information on
return.
employer reporting requirements, see Code
FF—Permitted benefits under a qualified small employer If the repayment was for a prior year, you must file
health reimbursement, later. Form W-2c with the SSA to correct only social security
and Medicare wages and taxes, and furnish a copy to the
Railroad employers (not applicable to Forms W-2AS, employee. Do not correct "Wages, tips, other
W-2CM, W-2GU, or W-2VI). Railroad employers must compensation" in box 1, or "Federal income tax withheld"
file Form W-2 to report their employees' wages and in box 2, on Form W-2c. Also do not correct any
income tax withholding in boxes 1 and 2. You must file a Additional Medicare Tax withheld on the repaid wages
separate Form W-3 to transmit the Forms W-2 if you have (reported with Medicare tax withheld in box 6) on Form
employees covered under the Federal Insurance W-2c. File the “X” return that is appropriate for the return
Contributions Act (FICA) (social security and Medicare) on which the wages or compensation was originally
and the Railroad Retirement Tax Act (RRTA). reported (Forms 941-X, 943-X, 944-X, or CT-1X). Correct
For employees covered by RRTA tax. Check the the social security and Medicare wages and taxes for the
“CT-1” checkbox on Form W-3, box b, “Kind of Payer,” to period during which the wages or compensation was
transmit Forms W-2 for employees with box 1 wages and originally paid. For information on reporting adjustments to
box 2 tax withholding. Use Form W-2, box 14, to report Forms 941, 941-SS, 943, 944, or Form CT-1, see section
total RRTA compensation, Tier 1, Tier 2, Medicare

-12- General Instructions for Forms W-2 and W-3 (2023)

13 of Pub. 15 (Circular E), the Instructions for Form tax returns. Rev. Proc. 2004-53, 2004-34 I.R.B. 320, is
CT-1X, or section 9 of Pub. 51 (Circular A). available at IRS.gov/irb/2004-34_IRB#RP-2004-53.
Tell your employee that the wages paid in error in Terminating a business. If you terminate your business,
TIP a prior year remain taxable to them for that year. you must provide Forms W-2 to your employees for the
This is because the employee received and had calendar year of termination by the due date of your final
use of those funds during that year. The employee is not Form 941, 944, or 941-SS. You must also file Forms W-2
entitled to file an amended return (Form 1040-X) to with the SSA by the due date of your final Form 941, 944,
recover the income tax on these wages. For repayments or 941-SS. If filing on paper, make sure you obtain Forms
greater than $3,000, the employee may be entitled to a W-2 and W-3 preprinted with the correct year. If e-filing,
deduction or credit for the repaid wages on their Form make sure your software has been updated for the current
1040 or 1040-SR for the year of repayment. However, the tax year.
employee is entitled to file an amended return (Form However, if any of your employees are immediately
1040-X) to recover Additional Medicare Tax on these employed by a successor employer, see Successor/
wages, if any. Refer your employee to Repayments in predecessor employers above. Also, for information on
Pub. 525, for additional information. automatic extensions for furnishing Forms W-2 to
employees and filing Forms W-2, see Rev. Proc. 96-57,
Scholarship and fellowship grants. Give a Form W-2 which is on page 14 of Internal Revenue Bulletin 1996-53
to each recipient of a scholarship or fellowship grant only at IRS.gov/pub/irs-irbs/irb96-53.pdf.
if you are reporting amounts includible in income under
section 117(c) (relating to payments for teaching, Get Schedule D (Form 941), Report of
research, or other services required as a condition for TIP Discrepancies Caused by Acquisitions, Statutory
receiving the qualified scholarship). Also see Pub. 15-A Mergers, or Consolidations, for information on
and Pub. 970. These payments are subject to federal reconciling wages and taxes reported on Forms W-2 with
income tax withholding. However, their taxability for social amounts reported on Forms 941, 941-SS, or 944.
security and Medicare taxes (or railroad retirement taxes,
if applicable) depends on the nature of the employment Uniformed Services Employment and Reemployment
and the status of the organization. See Students, Rights Act of 1994 (USERRA) make-up amounts to a
scholars, trainees, teachers, etc., in section 15 of Pub. 15 pension plan. If an employee returned to your
(Circular E). employment after military service and certain make-up
amounts were contributed to a pension plan for a prior
Sick pay. If you had employees who received sick pay in year(s) under the USERRA, report the prior year
2023 from an insurance company or other third-party contributions separately in box 12. See the TIP above
payer and the third party notified you of the amount of sick Code D under Box 12—Codes. You may also report
pay involved, you may be required to report the certain make-up amounts in box 14. See Box 14—Other
information on the employees' Forms W-2. If the in Specific Instructions for Form W-2.
insurance company or other third-party payer did not
Instead of reporting in box 12 (or box 14), you may
notify you in a timely manner about the sick pay
choose to provide a separate statement to your employee
payments, it must prepare Forms W-2 and W-3 for your
showing USERRA make-up contributions. The statement
employees showing the sick pay. For specific reporting
must identify the type of plan, the year(s) to which the
instructions, see section 6 of Pub. 15-A.
contributions relate, and the amount contributed for each
SIMPLE retirement account. An employee's salary year.
reduction contributions to a SIMPLE (savings incentive
Virtual currency. For federal tax purposes, virtual
match plan for employees) retirement account are not
currency is treated as property. Bitcoin is an example of
subject to federal income tax withholding but are subject
virtual currency. Transactions using virtual currency (such
to social security, Medicare, and railroad retirement taxes.
as Bitcoin) must be reported in U.S. dollars.
Do not include an employee's contribution in box 1, but do
include it in boxes 3 and 5. (Use box 14 if railroad The fair market value (FMV) of virtual currency (such as
retirement taxes apply.) An employee's total contribution Bitcoin) paid as wages is income and subject to federal
must also be included in box 12 with code D or S. income tax withholding, FICA tax, and FUTA tax and must
be reported on Form W-2. For more information about
An employer's matching or nonelective contribution to
how virtual currency is treated for federal income tax
an employee's SIMPLE retirement account is not subject
purposes, including W-2 requirements, see Notice
to federal income tax withholding or social security,
2014-21, 2014-16 I.R.B. 938, available at IRS.gov/irb/
Medicare, or railroad retirement taxes, and is not to be
2014-16_IRB#NOT-2014-21 and Rev. Rul. 2019-24,
shown on Form W-2.
available at IRS.gov/irb/2019-44_IRB#REV-RUL-2019-24
For more information on SIMPLE retirement accounts, and related FAQs, available at IRS.gov/
see Notice 98-4, 1998-1 C.B. 269. You can find Notice virtualcurrencyfaqs.
98-4 on page 25 of Internal Revenue Bulletin 1998-2 at
IRS.gov/pub/irs-irbs/irb98-02.pdf. Penalties
Successor/predecessor employers. If you buy or sell a The following penalties apply to the person or employer
business during the year, see Rev. Proc. 2004-53 for required to file Form W-2. The penalties apply to both
information on who must file Forms W-2 and employment paper filers and e-filers.

General Instructions for Forms W-2 and W-3 (2023) -13-

 Employers are responsible for ensuring that 2. An inconsequential error or omission is not
! Forms W-2 are furnished to employees and that considered a failure to include correct information. An
CAUTION Forms W-2 and W-3 are filed with the SSA inconsequential error or omission is an error that does not
correctly and on time, even if the employer contracts with prevent or hinder the SSA/IRS from processing the Form
a third party to perform these acts. The IRS strongly W-2, from correlating the information required to be
suggests that the employer's address, not the third party's shown on the form with the information shown on the
address, be the address on record with the IRS. This will payee's tax return, or from otherwise putting the form to its
ensure that you remain informed of tax matters involving intended use. Errors and omissions that are never
your business because the IRS will correspond to the inconsequential are those relating to:
employer's address of record if there are any issues with • A TIN,
an account. If you choose to outsource any of your payroll • A payee's surname, and
and related tax duties (that is, withholding, reporting, and • Any money amounts.
paying over social security, Medicare, FUTA, and income 3. De minimis rule for corrections. Even though you
taxes) to a third-party payer, go to IRS.gov/ cannot show reasonable cause, the penalty for failure to
OutsourcingPayrollDuties for helpful information on this file correct Forms W-2 will not apply to a certain number of
topic. returns if you:
• Filed those Forms W-2 on or before the required filing
Failure to file correct information returns by the due date,
date. If you fail to file a correct Form W-2 by the due date • Either failed to include all of the information required on
and cannot show reasonable cause, you may be subject the form or included incorrect information, and
to a penalty as provided under section 6721. The penalty • Filed corrections of these forms by August 1.
applies if you:
• Fail to file timely, If you meet all of the de minimis rule conditions, the
• Fail to include all information required to be shown on penalty for filing incorrect information returns (including
Form W-2, Form W-2) will not apply to the greater of 10 information
• Include incorrect information on Form W-2, returns (including Form W-2) or one-half of 1% of the total
• File on paper forms when you are required to e-file, number of information returns (including Form W-2) that
• Report an incorrect TIN, you are required to file for the calendar year.
• Fail to report a TIN, or 4. Forms W-2 issued with incorrect dollar amounts
• Fail to file paper Forms W-2 that are machine readable. may fall under a safe harbor for certain de minimis errors.
The amount of the penalty is based on when you file The safe harbor generally applies if no single amount in
the correct Form W-2. Penalties are indexed for inflation. error differs from the correct amount by more than $100
The penalty amounts shown below apply to filings due and no single amount reported for tax withheld differs
after December 31, 2023. The penalty is: from the correct amount by more than $25.
• $60 per Form W-2 if you correctly file within 30 days of If the safe harbor applies, you will not have to correct
the due date; the maximum penalty is $630,500 per year the Form W-2 to avoid penalties. However, if the payee
($220,500 for small businesses, defined in Small elects for the safe harbor not to apply, you may have to
businesses). issue a corrected return to avoid penalties. For more
• $120 per Form W-2 if you correctly file more than 30 information, see Notice 2017-9, 2017-4 I.R.B. 542,
days after the due date but by August 1; the maximum available at IRS.gov/irb/2017-04_IRB#NOT-2017-09.
penalty is $1,891,500 per year ($630,500 for small Small businesses. For purposes of the lower
businesses). maximum penalties shown in Failure to file correct
• $310 per Form W-2 if you file after August 1, do not file information returns by the due date, you are a small
corrections, or do not file required Forms W-2; the business if your average annual gross receipts for the 3
maximum penalty is $3,783,000 per year ($1,261,000 for most recent tax years (or for the period that you were in
small businesses). existence, if shorter) ending before the calendar year in
If you do not file corrections and you do not meet which the Forms W-2 were due are $5 million or less.
! any of the exceptions to the penalty, the penalty is Intentional disregard of filing requirements. If any
CAUTION $310 per information return. The maximum failure to timely file a correct Form W-2 is due to
penalty is $3,783,000 per year ($1,261,000 for small intentional disregard of the filing or correct information
businesses). requirements, the penalty is at least $630 per Form W-2
with no maximum penalty.
Exceptions to the penalty. The following are
exceptions to the failure to file correct information returns Failure to furnish correct payee statements. If you fail
to provide correct payee statements (Forms W-2) to your
penalty.
employees and cannot show reasonable cause, you may
1. The penalty will not apply to any failure that you can be subject to a penalty as provided under section 6722.
show was due to reasonable cause and not to willful The penalty applies if you fail to provide the statement by
neglect. In general, you must be able to show that your January 31, 2024, if you fail to include all information
failure was due to an event beyond your control or due to required to be shown on the statement, or if you include
significant mitigating factors. You must also be able to incorrect information on the statement.
show that you acted in a responsible manner and took
steps to avoid the failure. The amount of the penalty is based on when you
furnish the correct payee statement. This penalty is an

-14- General Instructions for Forms W-2 and W-3 (2023)

additional penalty and is applied in the same manner, and Also see the Caution under How To Get Forms and
with the same amounts, as in Failure to file correct Publications.
information returns by the due date.
Calendar year basis. The entries on Form W-2 must be
Exceptions to the penalty. An inconsequential error based on wages paid during the calendar year. Use Form
or omission is not considered a failure to include correct W-2 for the correct tax year. For example, if the employee
information. An inconsequential error or omission is an worked from December 17, 2023, through December 30,
error that cannot reasonably be expected to prevent or 2023, and the wages for that period were paid on January
hinder the payee from timely receiving correct information 2, 2024, include those wages on the 2024 Form W-2.
and reporting it on their income tax return or from
otherwise putting the statement to its intended use. Errors Multiple forms. If necessary, you can issue more than
and omissions that are never inconsequential are those one Form W-2 to an employee. For example, you may
relating to: need to report more than four coded items in box 12 or
• A dollar amount (except as provided above with respect you may want to report other compensation on a second
to the safe harbor for de minimis dollar amount errors), form. If you issue a second Form W-2, complete boxes a,
• A significant item in a payee's address, and b, c, d, e, and f with the same information as on the first
• The appropriate form for the information provided, such Form W-2. Show any items that were not included on the
as whether the form is an acceptable substitute for the first Form W-2 in the appropriate boxes.
official IRS form. Do not report the same federal, American Samoa,
See Exceptions to the penalty under Failure to file CNMI, Guam, or U.S. Virgin Islands tax data to the SSA
correct information returns by the due date, for additional on more than one Copy A.
exceptions to the penalty for failure to furnish correct For each Form W-2 showing an amount in box 3
payee statements. TIP or 7, make certain that box 5 equals or exceeds
Intentional disregard of payee statement the sum of boxes 3 and 7.
requirements. If any failure to provide a correct payee
statement (Form W-2) to an employee is due to intentional VOID. Check this box when an error is made on Form
disregard of the requirements to furnish a correct payee W-2 and you are voiding it because you are going to
statement, the penalty is $630 per Form W-2 with no complete a new Form W-2. Do not include any amounts
maximum penalty. shown on “VOID” forms in the totals you enter on Form
Civil damages for fraudulent filing of Forms W-2. If W-3. See Corrections.
you willfully file a fraudulent Form W-2 for payments that Box a—Employee's social security number. Enter the
you claim you made to another person, that person may number shown on the employee's social security card.
be able to sue you for damages. If you are found liable, If the employee does not have a card, they should
you may have to pay $5,000 or more in damages. You apply for one by completing Form SS-5, Application for a
may also be subject to criminal sanctions. Social Security Card. The SSA lets you verify employee
names and SSNs online. For information about these free
Specific Instructions for Form W-2 services, visit the Employer W-2 Filing Instructions &
Information website at SSA.gov/employer. If you have
How to complete Form W-2. Form W-2 is a multi-part questions about using these services, call 800-772-6270
form. Ensure all copies are legible. Do not print Forms (toll free) to speak with an employer reporting technician
W-2 (Copy A) on double-sided paper. at the SSA.
Send Copy A to the SSA; Copy 1, if required, to your If the employee has applied for a card but the number
state, city, or local tax department; and Copies B, C, and 2 is not received in time for filing, enter “Applied For” in box
to your employee. Keep a copy of Copy A, and a copy of a on paper Forms W-2 filed with the SSA. If e-filing, enter
Form W-3, with your records for at least 4 years. zeros (000-00-0000 if creating forms online or 000000000
Enter the information on Form W-2 using black ink in if uploading a file).
12-point Courier font. Copy A is read by machine and Ask the employee to inform you of the number and
must be typed clearly with no corrections made to the name as they are shown on the social security card when
entries and with no entries exceeding the size of the it is received. Then correct your previous report by filing
boxes. Entries completed by hand, in script or italic fonts Form W-2c showing the employee's SSN. If the employee
are discouraged. Colors other than black cannot be read needs to change their name from that shown on the card,
by the machines. Make all dollar entries on Copy A the employee should call the SSA at 800-772-1213.
without the dollar sign and comma but with the decimal
point (00000.00). Show the cents portion of the money If you do not provide the correct employee name and
amounts. If a box does not apply, leave it blank. SSN on Form W-2, you may owe a penalty unless you
have reasonable cause. For more information, see Pub.
Send the whole Copy A page of Form W-2 with Form 1586, Reasonable Cause Regulations & Requirements for
W-3 to the SSA even if one of the Forms W-2 on the page Missing and Incorrect Name/TINs.
is blank or void. Do not staple Forms W-2 together or to
ITINs for aliens. Do not accept an ITIN in place of an
Form W-3. File Forms W-2 either alphabetically by
SSN for employee identification or for work. An ITIN is
employees' last names or numerically by employees'
only available to resident and nonresident aliens who are
SSNs.
not eligible for U.S. employment and need identification
for other tax purposes. You can identify an ITIN because it

General Instructions for Forms W-2 and W-3 (2023) -15-

is a 9-digit number formatted like an SSN beginning with information in the following order: city, province or state,
the number “9” and with a number in one of the following and country. Follow the country's practice for entering the
ranges in the fourth and fifth digits: 50–65, 70–88, 90–92, postal code. Do not abbreviate the country name.
and 94–99 (for example, 9NN-70-NNNN). An individual Box 1—Wages, tips, other compensation. Show the
with an ITIN who later becomes eligible to work in the total taxable wages, tips, and other compensation that you
United States must obtain an SSN. paid to your employee during the year. However, do not
Do not auto populate an ITIN into box a. include elective deferrals (such as employee contributions
! to a section 401(k) or 403(b) plan) except section 501(c)
CAUTION (18) contributions. Include the following.
Box b—Employer identification number (EIN). Show 1. Total wages, bonuses (including signing bonuses),
the EIN assigned to you by the IRS (00-0000000). This prizes, and awards paid to employees during the year.
should be the same number that you used on your federal See Calendar year basis.
employment tax returns (Forms 941, 941-SS, 943, 944, 2. Total noncash payments, including certain fringe
CT-1, or Schedule H (Form 1040)). Do not truncate your benefits. See Fringe benefits.
EIN. See Regulations section 31.6051-1(a)(1)(i)(A) and 3. Total tips reported by the employee to the employer
301.6109-4(b)(2)(iv). Do not use a prior owner's EIN. If (not allocated tips).
you do not have an EIN when filing Forms W-2, enter
“Applied For” in box b; do not use your SSN. You can get 4. Certain employee business expense
an EIN by applying online at IRS.gov/EIN or by filing Form reimbursements. See Employee business expense
SS-4, Application for Employer Identification Number. reimbursements.
Also see Agent reporting. 5. The cost of accident and health insurance
premiums for 2%-or-more shareholder-employees paid by
Box c—Employer's name, address, and ZIP code. an S corporation.
This entry should be the same as shown on your Forms
941, 941-SS, 943, 944, CT-1, or Schedule H (Form 1040). 6. Taxable benefits from a section 125 (cafeteria) plan
The U.S. Postal Service recommends that no commas or if the employee chooses cash.
periods be used in return addresses. Also see Agent 7. Employee contributions to an Archer MSA.
reporting. 8. Employer contributions to an Archer MSA if
Box d—Control number. You may use this box to includible in the income of the employee. See Archer
identify individual Forms W-2. You do not have to use this MSA.
box. 9. Employer contributions for qualified long-term care
Boxes e and f—Employee's name and address. Enter services to the extent that such coverage is provided
the name as shown on your employee's social security through a flexible spending or similar arrangement.
card (first name, middle initial, last name). If the name 10. Taxable cost of group-term life insurance in excess
does not fit in the space allowed on the form, you may of $50,000. See Group-term life insurance.
show the first and middle name initials and the full last 11. Unless excludable under Educational assistance
name. It is especially important to report the exact last programs, payments for non-job-related education
name of the employee. If you are unable to determine the expenses or for payments under a nonaccountable plan.
correct last name, use of the SSA's Social Security See Pub. 970.
Number Verification System may be helpful. 12. The amount includible as wages because you paid
Separate parts of a compound name with either a your employee's share of social security and Medicare
hyphen or a blank space. Do not join them into a single taxes (or railroad retirement taxes, if applicable). See
word. Include all parts of a compound name in the Employee's social security and Medicare taxes (or
appropriate name field. For example, for the name “Jessie railroad retirement taxes, if applicable) paid by employer.
R Smith-Jones,” enter “Smith-Jones” or “Smith Jones” in If you also paid your employee's income tax withholding,
the last name field. treat the grossed-up amount of that withholding as
If the name has changed, the employee must get a supplemental wages and report those wages in boxes 1,
corrected social security card from any SSA office. Use 3, 5, and 7. (Use box 14 if railroad retirement taxes apply.)
the name on the original card until you see the corrected No exceptions to this treatment apply to household or
card. agricultural wages.
Do not show titles or academic degrees, such as “Dr.,” 13. Designated Roth contributions made under a
“RN,” or “Esq.,” at the beginning or end of the employee's section 401(k) plan, a section 403(b) salary reduction
name. Generally, do not enter “Jr.,” “Sr.,” or other suffix in agreement, or a governmental section 457(b) plan. See
the “Suff.” box on Copy A unless the suffix appears on the Designated Roth contributions.
card. However, the SSA still prefers that you do not enter 14. Distributions to an employee or former employee
the suffix on Copy A. from an NQDC plan (including a rabbi trust) or a
Include in the address the number, street, and nongovernmental section 457(b) plan.
apartment or suite number (or P.O. box number if mail is 15. Amounts includible in income under section 457(f)
not delivered to a street address). The U.S. Postal Service because the amounts are no longer subject to a
recommends that no commas or periods be used in substantial risk of forfeiture.
delivery addresses. For a foreign address, give the

-16- General Instructions for Forms W-2 and W-3 (2023)

 16. Payments to statutory employees who are subject section 457(b) plan described in box 12 (codes AA, BB,
to social security and Medicare taxes but not subject to and EE).
federal income tax withholding must be shown in box 1 as Amounts deferred (plus earnings or less losses) under
other compensation. See Statutory employee. a section 457(f) or nonqualified plan or nongovernmental
17. Cost of current insurance protection under a section 457(b) plan must be included in boxes 3 and/or 5
compensatory split-dollar life insurance arrangement. as social security and/or Medicare wages as of the later of
18. Employee contributions to a health savings account when the services giving rise to the deferral are performed
(HSA). or when there is no substantial forfeiture risk of the rights
to the deferred amount. Include both elective and
19. Employer contributions to an HSA if includible in the
nonelective deferrals for purposes of nongovernmental
income of the employee. See Health savings account
section 457(b) plans.
(HSA).
Wages reported in box 3 also include:
20. Amounts includible in income under section 409A
from an NQDC because the amounts are no longer
• Signing bonuses an employer pays for signing or
ratifying an employment contract. See Rev. Rul.
subject to a substantial risk of forfeiture and were not
2004-109, 2004-50 I.R.B. 958, available at IRS.gov/irb/
previously included in income. See Nonqualified deferred
2004-50_IRB#RR-2004-109.
compensation plans under Special Reporting Situations
for Form W-2.
• Taxable cost of group-term life insurance over $50,000
included in box 1. See Group-term life insurance.
21. Nonqualified moving expenses and expense • Cost of accident and health insurance premiums for
reimbursements. See Moving expenses. 2%-or-more shareholder-employees paid by an S
22. Payments made to former employees while they are corporation, but only if not excludable under section
on active duty in the U.S. Armed Forces or other 3121(a)(2)(B).
uniformed services. • Employee and nonexcludable employer contributions to
23. All other compensation, including certain an MSA or HSA. However, do not include employee
scholarship and fellowship grants. See Scholarship and contributions to an HSA that were made through a
fellowship grants. Other compensation includes taxable cafeteria plan. See Archer MSA and Health savings
amounts that you paid to your employee from which account (HSA).
federal income tax was not withheld. You may show other • Employee contributions to a SIMPLE retirement
compensation on a separate Form W-2. See Multiple account. See SIMPLE retirement account.
forms. • Adoption benefits. See Adoption benefits.
Box 4—Social security tax withheld. Show the total
Box 2—Federal income tax withheld. Show the total employee social security tax (not your share) withheld,
federal income tax withheld from the employee's wages including social security tax on tips. For 2023, the amount
for the year. Include the 20% excise tax withheld on should not exceed $9,932.40 ($160,200 × 6.2%). Include
excess parachute payments. See Golden parachute only taxes withheld (or paid by you for the employee) for
payments. 2023 wages and tips. If you paid your employee's share,
For Forms W-2AS, W-2CM, W-2GU, or W-2VI, show see Employee's social security and Medicare taxes (or
the total American Samoa, CNMI, Guam, or U.S. Virgin railroad retirement taxes, if applicable) paid by employer.
Islands income tax withheld.
Box 5—Medicare wages and tips. The wages and tips
Box 3—Social security wages. Show the total wages subject to Medicare tax are the same as those subject to
paid (before payroll deductions) subject to employee social security tax (boxes 3 and 7) except that there is no
social security tax but not including social security tips and wage base limit for Medicare tax. Enter the total Medicare
allocated tips. If reporting these amounts in a subsequent wages and tips in box 5. Be sure to enter tips that the
year (due to lapse of risk of forfeiture), the amount must employee reported even if you did not have enough
be adjusted by any gain or loss. See Box 7—Social employee funds to collect the Medicare tax for those tips.
security tips and Box 8—Allocated tips. Generally, See Box 3—Social security wages for payments to report
noncash payments are considered to be wages. Include in this box. If you paid your employee's share of taxes, see
employee business expense reimbursements and moving Employee's social security and Medicare taxes (or
expenses reported in box 1. If you paid the employee's railroad retirement taxes, if applicable) paid by employer.
share of social security and Medicare taxes rather than If you are a federal, state, or local governmental agency
deducting them from wages, see Employee's social with employees paying only Medicare tax, enter the
security and Medicare taxes (or railroad retirement taxes, Medicare wages in this box. See Government employers.
if applicable) paid by employer. The total of boxes 3 and 7 Example of how to report social security and
cannot exceed $160,200 (2023 maximum social security Medicare wages. You paid your employee $170,000 in
wage base). wages. Enter in box 3 (social security wages) 160200.00,
Report in box 3 elective deferrals to certain qualified but enter in box 5 (Medicare wages and tips) 170000.00.
cash or deferred compensation arrangements and to There is no limit on the amount reported in box 5. If the
retirement plans described in box 12 (codes D, E, F, G, amount of wages paid was $160,200 or less, the amounts
and S) even though the deferrals are not includible in entered in boxes 3 and 5 will be the same.
box 1. Also report in box 3 designated Roth contributions
made under a section 401(k) plan, under a section 403(b) Box 6—Medicare tax withheld. Enter the total
salary reduction agreement, or under a governmental employee Medicare tax (including any Additional

General Instructions for Forms W-2 and W-3 (2023) -17-

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

Special Wage Payments to the Social Security

Box 8—Allocated tips (not applicable to Forms
Administration, and Form SSA-131, Employer Report of
W-2AS, W-2CM, W-2GU, or W-2VI). If you operate a
Special Wage Payments, for instructions on reporting
large food or beverage establishment, show the tips
these and other kinds of compensation earned in prior
allocated to the employee. See the Instructions for Form
years. However, do not file Form SSA-131 if this
8027, Employer's Annual Information Return of Tip
situation applies and the employee was not 61 years
Income and Allocated Tips. Do not include this amount in
old or more during the tax year for which you are
box 1, 3, 5, or 7.
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
W-2)). On all other copies of Form W-2 (Copies B, C,
Report distributions to an employee from a nonqualified
etc.), you may enter more than four items in box 12 when
plan or nongovernmental section 457(b) plan in box 11.

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

using an approved substitute Form W-2. See Multiple year, you must enter the prior year contributions
forms. separately. Beginning with the earliest year, enter the
code, the year, and the amount. For example, elective
Use the IRS code designated below for the item you deferrals of $2,250 for 2021 and $1,250 for 2022 under
are entering, followed by the dollar amount for that item. USERRA under a section 401(k) plan are reported in
Even if only one item is entered, you must use the IRS box 12 as follows.
code designated for that item. Enter the code using a
capital letter(s). Use decimal points but not dollar signs or D 21 2250.00, D 22 1250.00. A 2023 contribution of
commas. For example, if you are reporting $5,300.00 in $7,000 does not require a year designation; enter it as D
elective deferrals under a section 401(k) plan, the entry 7000.00. Report the code (and year for prior year
would be D 5300.00 (not A 5300.00 even though it is the USERRA contributions) to the left of the vertical line in
first or only entry in this box). Report the IRS code to the boxes 12a through 12d.
left of the vertical line in boxes 12a through 12d and the
The following are not elective deferrals and may be
money amount to the right of the vertical line.
reported in box 14, but not in box 12.
See the Form W-2 Reference Guide for Box 12 Codes. • Nonelective employer contributions made on behalf of
The detailed instructions for each code are next. an employee.
Code A—Uncollected social security or RRTA tax • After-tax contributions that are not designated Roth
on tips. Show the employee social security or Railroad contributions, such as voluntary contributions to a pension
Retirement Tax Act (RRTA) tax on all of the employee's plan that are deducted from an employee's pay. See the
tips that you could not collect because the employee did box 12 instructions for Code AA—Designated Roth
not have enough funds from which to deduct it. Do not contributions under a section 401(k) plan, Code
include this amount in box 4. BB—Designated Roth contributions under a section
Code B—Uncollected Medicare tax on tips. Show 403(b) plan, and Code EE—Designated Roth
the employee Medicare tax or RRTA Medicare tax on tips contributions under a governmental section 457(b) plan
that you could not collect because the employee did not for reporting designated Roth contributions.
have enough funds from which to deduct it. Do not show • Required employee contributions.
any uncollected Additional Medicare Tax. Do not include • Employer matching contributions.
this amount in box 6. Code D—Elective deferrals under a section 401(k)
Code C—Taxable cost of group-term life insurance cash or deferred arrangement (plan). Also show
over $50,000. Show the taxable cost of group-term life deferrals under a SIMPLE retirement account that is part
insurance coverage over $50,000 provided to your of a section 401(k) arrangement.
employee (including a former employee). See Group-term Example of reporting excess elective deferrals
life insurance. Also include this amount in boxes 1, 3 (up and designated Roth contributions under a section
to the social security wage base), and 5. Include the 401(k) plan. For 2023, Employee A (age 45) elected to
amount in box 14 if you are a railroad employer. defer $23,500 under a section 401(k) plan. The employee
Codes D through H, S, Y, AA, BB, and EE. Use also made a designated Roth contribution to the plan of
these codes to show elective deferrals and designated $1,000, and made a voluntary (non-Roth) after-tax
Roth contributions made to the plans listed. Do not report contribution of $600. In addition, the employer, on A's
amounts for other types of plans. See the example for behalf, made a qualified nonelective contribution of
reporting elective deferrals under a section 401(k) plan, $2,000 to the plan and a nonelective profit-sharing
later. employer contribution of $3,000.
The amount reported as elective deferrals and Even though the 2023 limit for elective deferrals and
designated Roth contributions is only the part of the designated Roth contributions is $22,500, the employee's
employee's salary (or other compensation) that they did total elective deferral amount of $23,500 is reported in
not receive because of the deferrals or designated Roth box 12 with code D (D 23500.00). The designated Roth
contributions. Only elective deferrals and designated Roth contribution is reported in box 12 with code AA (AA
contributions should be reported in box 12 for all coded 1000.00). The employer must separately report the actual
plans; except, when using code G for section 457(b) amounts of $23,500 and $1,000 in box 12 with the
plans, include both elective and nonelective deferrals. appropriate codes. The amount deferred in excess of the
For employees who were 50 years of age or older at limit is not reported in box 1. The return of excess elective
any time during the year and made elective deferral deferrals and excess designated Roth contributions,
and/or designated Roth “catch-up” contributions, report including earnings on both, is reported on Form 1099-R.
the elective deferrals and the elective deferral “catch-up” The $600 voluntary after-tax contribution may be
contributions as a single sum in box 12 using the reported in box 14 (this is optional) but not in box 12. The
appropriate code and the designated Roth contributions $2,000 qualified nonelective contribution and the $3,000
and designated Roth “catch-up” contributions as a single nonelective profit-sharing employer contribution are not
sum in box 12 using the appropriate code. required to be reported on Form W-2, but may be reported
If any elective deferrals, salary reduction amounts, in box 14.
TIP or nonelective contributions under a section Check the “Retirement plan” box in box 13.
457(b) plan during the year are make-up amounts Code E—Elective deferrals under a section 403(b)
under the Uniformed Services Employment and salary reduction agreement.
Reemployment Rights Act of 1994 (USERRA) for a prior

General Instructions for Forms W-2 and W-3 (2023) -19-

 Code F—Elective deferrals under a section 408(k) a military order and incident to a permanent change of
(6) salary reduction SEP. station.
Code G—Elective deferrals and employer Show the total moving expense reimbursements that
contributions (including nonelective deferrals) to you paid directly to your employee for qualified (allowable)
any governmental or nongovernmental section moving expenses. See Moving expenses.
457(b) deferred compensation plan. Do not report Code Q—Nontaxable combat pay. If you are a
either section 457(b) or section 457(f) amounts that are military employer, report any nontaxable combat pay in
subject to a substantial risk of forfeiture. box 12.
Code H—Elective deferrals under section 501(c) Code R—Employer contributions to an Archer
(18)(D) tax-exempt organization plan. Be sure to MSA. Show any employer contributions to an Archer
include this amount in box 1 as wages. The employee will MSA. See Archer MSA.
deduct the amount on their Form 1040 or 1040-SR. Code S—Employee salary reduction contributions
Code J—Nontaxable sick pay. Show any sick pay under a section 408(p) SIMPLE plan. Show deferrals
that was paid by a third party and was not includible in under a section 408(p) salary reduction SIMPLE
income (and not shown in boxes 1, 3, and 5) because the retirement account. However, if the SIMPLE plan is part of
employee contributed to the sick pay plan. Do not include a section 401(k) arrangement, use code D. If you are
nontaxable disability payments made directly by a state. reporting prior year contributions under USERRA, see the
Code K—20% excise tax on excess golden TIP above Code D under Box 12—Codes.
parachute payments (not applicable to Forms Code T—Adoption benefits. Show the total that you
W-2AS, W-2CM, W-2GU, or W-2VI). If you made excess paid or reimbursed for qualified adoption expenses
golden parachute payments to certain key corporate furnished to your employee under an adoption assistance
employees, report the 20% excise tax on these payments. program. Also include adoption benefits paid or
If the excess payments are considered to be wages, reimbursed from the pre-tax contributions made by the
report the 20% excise tax withheld as income tax withheld employee under a section 125 (cafeteria) plan. However,
in box 2. do not include adoption benefits forfeited from a section
Code L—Substantiated employee business 125 (cafeteria) plan. Report all amounts including those in
expense reimbursements. Use this code only if you excess of the $15,950 exclusion. For more information,
reimbursed your employee for employee business see Adoption benefits.
expenses using a per diem or mileage allowance and the Code V—Income from the exercise of nonstatutory
amount that you reimbursed exceeds the amount treated stock option(s). Show the spread (that is, the fair market
as substantiated under IRS rules. See Employee business value (FMV) of stock over the exercise price of option(s)
expense reimbursements. granted to your employee with respect to that stock) from
Report in box 12 only the amount treated as your employee's (or former employee's) exercise of
substantiated (such as the nontaxable part). Include in nonstatutory stock option(s). Include this amount in boxes
boxes 1, 3 (up to the social security wage base), and 5 the 1, 3 (up to the social security wage base), and 5. If you are
part of the reimbursement that is more than the amount a railroad employer, do not include this amount in box 14
treated as substantiated. Report the unsubstantiated for railroad employees covered by RRTA. For more
amounts in box 14 if you are a railroad employer. information, see For employees covered by RRTA tax
Code M—Uncollected social security or RRTA tax above.
on taxable cost of group-term life insurance over This reporting requirement does not apply to the
$50,000 (for former employees). If you provided your exercise of a statutory stock option, or the sale or
former employees (including retirees) more than $50,000 disposition of stock acquired pursuant to the exercise of a
of group-term life insurance coverage for periods during statutory stock option. For more information about the
which an employment relationship no longer exists, enter taxability of employee stock options, see Pub. 15-B.
the amount of uncollected social security or RRTA tax on Code W—Employer contributions to a health
the coverage in box 12. Do not include this amount in savings account (HSA). Show any employer
box 4. Also see Group-term life insurance. contributions (including amounts the employee elected to
Code N—Uncollected Medicare tax on taxable cost contribute using a section 125 (cafeteria) plan) to an HSA.
of group-term life insurance over $50,000 (for former See Health savings account (HSA).
employees). If you provided your former employees Code Y—Deferrals under a section 409A
(including retirees) more than $50,000 of group-term life nonqualified deferred compensation plan. It is not
insurance coverage for periods during which an necessary to show deferrals in box 12 with code Y. For
employment relationship no longer exists, enter the more information, see Notice 2008-115, 2008-52 I.R.B.
amount of uncollected Medicare tax or RRTA Medicare 1367, available at IRS.gov/irb/
tax on the coverage in box 12. Do not show any 2008-52_IRB#NOT-2008-115. However, if you report
uncollected Additional Medicare Tax. Do not include this these deferrals, show current year deferrals, including
amount in box 6. Also see Group-term life insurance. earnings during the year on current year and prior year
Code P—Excludable moving expense deferrals. See Nonqualified deferred compensation plans
reimbursements paid directly to a member of the under Special Reporting Situations for Form W-2.
U.S. Armed Forces. The exclusion for qualified moving Code Z—Income under a nonqualified deferred
expense reimbursements applies only to members of the compensation plan that fails to satisfy section 409A.
U.S. Armed Forces on active duty who move pursuant to Enter all amounts deferred (including earnings on

-20- General Instructions for Forms W-2 and W-3 (2023)

amounts deferred) that are includible in income under establishing eligibility for a lesser value permitted benefit,
section 409A because the NQDC plan fails to satisfy the report this lesser value permitted benefit on Form W-2.
requirements of section 409A. Do not include amounts Do not include carryover amounts from prior years in
properly reported on a Form 1099-MISC, corrected Form the permitted benefit.
1099-MISC, Form W-2, or Form W-2c for a prior year.
You may need to calculate a prorated permitted benefit
Also do not include amounts that are considered to be
under some circumstances.
subject to a substantial risk of forfeiture for purposes of
section 409A. For more information, see Regulations • If your QSEHRA provides a permitted benefit prorated
by month for employees not eligible for the full year, report
sections 1.409A-1, -2, -3, and -6; and Notice 2008-115.
the prorated permitted benefit. For example, a QSEHRA
The amount reported in box 12 using code Z is also provides a permitted benefit of $3,000 prorated by the
reported in box 1 and is subject to an additional tax number of months the employee is eligible. If an employee
reported on the employee's Form 1040 or 1040-SR. See becomes eligible on May 1, the employee’s permitted
Nonqualified deferred compensation plans under Special benefit is $2,000 ($3,000 x 8/12) for the calendar year.
Reporting Situations for Form W-2. The employer reports the permitted benefit of $2,000 for
For information regarding correcting section 409A that employee in box 12 using code FF.
errors and related reporting, see Notice 2008-113, Notice • If your QSEHRA is not based on a calendar year,
2010-6, and Notice 2010-80. prorate the permitted benefit for each part of the
Code AA—Designated Roth contributions under a QSEHRA’s plan year that falls within the calendar year.
section 401(k) plan. Use this code to report designated Report the sum of the prorated permitted benefits for the
Roth contributions under a section 401(k) plan. Do not two portions of the calendar year. For example, a
use this code to report elective deferrals under code D. non-calendar year QSEHRA has a plan year that begins
See Designated Roth contributions. on April 1 and ends on March 31 of the following year.
Code BB—Designated Roth contributions under a From April 1, 2022, through March 31, 2023, the QSEHRA
section 403(b) plan. Use this code to report designated provides a permitted benefit of $2,000. From April 1,
Roth contributions under a section 403(b) plan. Do not 2023, through March 31, 2024, the QSEHRA provides a
use this code to report elective deferrals under code E. permitted benefit of $3,000. The employer reports a
See Designated Roth contributions. permitted benefit of $2,750 (($2,000 x 3/12) + ($3,000 x
Code DD—Cost of employer-sponsored health 9/12)) for calendar year 2023.
coverage. Use this code to report the cost of You may also have to follow special reporting rules for
employer-sponsored health coverage. The amount certain taxable reimbursements.
reported with code DD is not taxable. Additional • If an employee who failed to have MEC for one or more
reporting guidance, including information about the months during the year mistakenly received
transitional reporting rules that apply, is available on reimbursements for expenses incurred in one of those
IRS.gov at Affordable Care Act (ACA) Tax Provisions. months, those reimbursements are taxable to the
Code EE—Designated Roth contributions under a employee. Report the taxable reimbursement as other
governmental section 457(b) plan. Use this code to compensation in box 1, but not in boxes 3 or 5. The
report designated Roth contributions under a taxable reimbursements are not wages for income, social
governmental section 457(b) plan. Do not use this code to security, or Medicare tax, so do not withhold these taxes.
report elective deferrals under code G. See Designated Report the permitted benefit that you would have reported
Roth contributions. for the employee as though there was no failure to have
Code FF—Permitted benefits under a qualified MEC. If you discover the lapse in MEC after filing with the
small employer health reimbursement arrangement. SSA, furnish the employee a correction on Form W-2c
Use this code to report the total amount of permitted and file the Form W-2c with the SSA.
benefits under a QSEHRA. The maximum reimbursement • If your QSEHRA provides for taxable reimbursements
for an eligible employee under a QSEHRA for 2023 is of either (a) over-the-counter drugs bought without a
$5,850 ($11,800 if it also provides reimbursements for prescription, or (b) premiums paid on a pre-tax basis for
family members). coverage under a group health plan sponsored by the
Report the amount of payments and reimbursements employer of the employee’s spouse, include the amount
the employee is entitled to receive under the QSEHRA for of the taxable reimbursements in boxes 1, 3, and 5 and
the calendar year, not the amount the employee actually treat as wages for purposes of income, social security,
receives. For example, a QSEHRA provides a permitted and Medicare taxes. Report the permitted benefit the
benefit of $3,000. If the employee receives employee is entitled to receive under the QSEHRA for the
reimbursements of $2,000, report a permitted benefit of calendar year in box 12 using code FF. Although a part of
$3,000 in box 12 with code FF. the permitted benefit is a taxable reimbursement, that
does not change the amount you report in box 12 with
If your QSEHRA provides benefits that vary based on code FF.
the number of family members covered under the
arrangement or their ages and an eligible employee For more details on reporting the total amount of
receives no payments or reimbursements and provides no QSEHRA permitted benefits, see Notice 2017-67, Q and
proof of minimum essential coverage (MEC), report the A 57 through 63, 2017-47 I.R.B. 517 at IRS.gov/irb/
highest value permitted benefits that the QSEHRA 2017-47_IRB#NOT-2017-67.
provides. If the employee later provides proof of MEC Code GG—Income from qualified equity grants
under section 83(i). Report the amount includible in

General Instructions for Forms W-2 and W-3 (2023) -21-

gross income from qualified equity grants under section information on employees who are eligible to participate in
83(i)(1)(A) for the calendar year. See Qualified equity a plan, contact your plan administrator. For details on the
grants under section 83(i) for more information. active participant rules, see Notice 87-16, 1987-1 C.B.
Code HH—Aggregate deferrals under section 83(i) 446; Notice 98-49, 1998-2 C.B. 365; section 219(g)(5);
elections as of the close of the calendar year. Report and Pub. 590-A, Contributions to Individual Retirement
the aggregate amount of income deferred under section Arrangements (IRAs). You can find Notice 98-49 on
83(i) elections as of the close of the calendar year. page 5 of Internal Revenue Bulletin 1998-38 at
IRS.gov/pub/irs-irbs/irb98-38.pdf.
Box 13—Checkboxes. Check all boxes that apply.
Statutory employee. Check this box for statutory Do not check this box for contributions made to a
employees whose earnings are subject to social security TIP nonqualified or section 457(b) plan.
and Medicare taxes but not subject to federal income tax
withholding. Do not check this box for common-law See the Form W-2 Box 13 Retirement Plan Checkbox
employees. There are workers who are independent Decision Chart.
contractors under the common-law rules but are treated Third-party sick pay. Check this box only if you are a
by statute as employees. They are called “statutory third-party sick pay payer filing a Form W-2 for an
employees.” insured's employee or are an employer reporting sick pay
1. A driver who distributes beverages (other than milk) payments made by a third party. See section 6 of Pub.
or meat, vegetable, fruit, or bakery products; or who picks 15-A.
up and delivers laundry or dry cleaning, if the driver is your Box 14—Other. If you included 100% of a vehicle's
agent or is paid on commission. annual lease value in the employee's income, it must also
2. A full-time life insurance sales agent whose be reported here or on a separate statement to your
principal business activity is selling life insurance or employee.
annuity contracts, or both, primarily for one life insurance You may also use this box for any other information that
company. you want to give to your employee. Label each item.
3. An individual who works at home on materials or Examples include state disability insurance taxes
goods that you supply and that must be returned to you or withheld, union dues, uniform payments, health insurance
to a person you name, if you also furnish specifications for premiums deducted, nontaxable income, educational
the work to be done. assistance payments, or a minister's parsonage
4. A full-time traveling or city salesperson who works allowance and utilities. In addition, you may enter the
on your behalf and turns in orders to you from following contributions to a pension plan: (a) nonelective
wholesalers, retailers, contractors, or operators of hotels, employer contributions made on behalf of an employee,
restaurants, or other similar establishments. The goods (b) voluntary after-tax contributions (but not designated
sold must be merchandise for resale or supplies for use in Roth contributions) that are deducted from an employee's
the buyer's business operation. The work performed for pay, (c) required employee contributions, and (d)
you must be the salesperson's principal business activity. employer matching contributions.
For details on statutory employees and common-law If you are reporting prior year contributions under
employees, see section 1 in Pub. 15-A. USERRA (see the TIP above Code D under Box
12—Codes and Uniformed Services Employment and
Retirement plan. Check this box if the employee was
Reemployment Rights Act of 1994 (USERRA) make-up
an “active participant” (for any part of the year) in any of
amounts to a pension plan), you may report in box 14
the following.
make-up amounts for nonelective employer contributions,
1. A qualified pension, profit-sharing, or stock-bonus voluntary after-tax contributions, required employee
plan described in section 401(a) (including a 401(k) plan). contributions, and employer matching contributions.
2. An annuity plan described in section 403(a). Report such amounts separately for each year.
3. An annuity contract or custodial account described Railroad employers, see Railroad employers for
in section 403(b). amounts reportable in box 14.
4. A simplified employee pension (SEP) plan Boxes 15 through 20—State and local income tax in-
described in section 408(k). formation (not applicable to Forms W-2AS, W-2CM,
5. A SIMPLE retirement account described in section W-2GU, or W-2VI). Use these boxes to report state and
408(p). local income tax information. Enter the two-letter
6. A trust described in section 501(c)(18). abbreviation for the name of the state. The employer's
state ID numbers are assigned by the individual states.
7. A plan for federal, state, or local government The state and local information boxes can be used to
employees or by an agency or instrumentality thereof report wages and taxes for two states and two localities.
(other than a section 457(b) plan). Keep each state's and locality's information separated by
Generally, an employee is an active participant if the broken line. If you need to report information for more
covered by (a) a defined benefit plan for any tax year that than two states or localities, prepare a second Form W-2.
they are eligible to participate in, or (b) a defined See Multiple forms. Contact your state or locality for
contribution plan (for example, a section 401(k) plan) for specific reporting information.
any tax year that employer or employee contributions (or Federal employers reporting income taxes paid to the
forfeitures) are added to their account. For additional CNMI under the 5517 agreement, enter the employer’s

-22- General Instructions for Forms W-2 and W-3 (2023)

identification number in box 15. Enter the employee’s Box b—Kind of Employer. Check the box that applies
CNMI wages in box 16. Enter the income taxes paid to the to you. Check only one box unless the second checked
CNMI in box 17. See Federal employers in the CNMI, box is “Third-party sick pay.” See Pub. 557, Tax-Exempt
earlier, for more information. Status for Your Organization, for information about 501(c)
(3) tax-exempt organizations.
Specific Instructions for Form W-3 None apply. Check this box if none of the checkboxes
discussed next apply to you.
How to complete Form W-3. The instructions under
501c non-govt. Check this box if you are a
How to complete Form W-2 generally apply to Form W-3.
non-governmental tax-exempt section 501(c)
Use black ink for all entries. Scanners cannot read entries
organization. Types of 501(c) non-governmental
if the type is too light. Be sure to send the entire page of
organizations include private foundations, public charities,
the Form W-3.
social and recreation clubs, and veterans organizations.
Amounts reported on related employment tax For additional examples of 501(c) non-governmental
TIP forms (for example, Forms W-2, 941, 941-SS, organizations, see chapters 3 and 4 of Pub. 557.
943, or 944) should agree with the amounts State/local non-501c. Check this box if you are a state
reported on Form W-3. If there are differences, you may or local government or instrumentality. This includes
be contacted by the IRS and SSA. Retain your cities, townships, counties, special-purpose districts,
reconciliation information for future reference. See public school districts, or other publicly owned entities
Reconciling Forms W-2, W-3, 941, 941-SS, 943, 944, with governmental authority.
CT-1, and Schedule H (Form 1040). State/local 501c. Check this box if you are a state or
local government or instrumentality, and you have
Box a—Control number. This is an optional box that received a determination letter from the IRS indicating that
you may use for numbering the whole transmittal. you are also a tax-exempt organization under section
Box b—Kind of Payer. Check the box that applies to 501(c)(3).
you. Check only one box. If you have more than one type Federal govt. Check this box if you are a federal
of Form W-2, send each type with a separate Form W-3. government entity or instrumentality.
Note. The “Third-party sick pay” indicator box does not Box b—Third-party sick pay. Check this box if you are
designate a separate kind of payer. a third-party sick pay payer (or are reporting sick pay
941. Check this box if you file Forms 941 or 941-SS payments made by a third party) filing Forms W-2 with the
and no other category applies. A church or church “Third-party sick pay” checkbox in box 13 checked. File a
organization should check this box even if it is not single Form W-3 for the regular and “Third-party sick pay”
required to file Forms 941, 941-SS, or 944. If you are a Forms W-2. See 941.
railroad employer sending Forms W-2 for employees
covered under the Railroad Retirement Tax Act (RRTA), Box c—Total number of Forms W-2. Show the number
check the “CT-1” box. of completed individual Forms W-2 that you are
Military. Check this box if you are a military employer transmitting with this Form W-3. Do not count “VOID”
sending Forms W-2 for members of the uniformed Forms W-2.
services. Box d—Establishment number. You may use this box
943. Check this box if you are an agricultural employer to identify separate establishments in your business. You
and file Form 943 and you are sending Forms W-2 for may file a separate Form W-3, with Forms W-2, for each
agricultural employees. For nonagricultural employees, establishment even if they all have the same EIN; or you
send their Forms W-2 with a separate Form W-3, may use a single Form W-3 for all Forms W-2 of the same
checking the appropriate box. type.
944. Check this box if you file Form 944 (or Formulario Box e—Employer identification number (EIN). Enter
944(SP), its Spanish-language version), and no other the 9-digit EIN assigned to you by the IRS. The number
category applies. should be the same as shown on your Forms 941,
CT-1. Check this box if you are a railroad employer 941-SS, 943, 944, CT-1, or Schedule H (Form 1040) and
sending Forms W-2 for employees covered under the in the following format: 00-0000000. Do not truncate your
RRTA. Do not show employee RRTA tax in boxes 3 EIN. See Regulations section 31.6051-1(a)(1)(i)(A) and
through 7. These boxes are only for social security and 301.6109-4(b)(2)(iv). Do not use a prior owner's EIN. See
Medicare information. If you also have employees who Box h—Other EIN used this year.
are subject to social security and Medicare taxes, send
that group's Forms W-2 with a separate Form W-3 and If you do not have an EIN when filing your Form W-3,
check the “941” checkbox on that Form W-3. enter “Applied For” in box e, not your social security
number (SSN), and see Box b—Employer identification
Hshld. emp. Check this box if you are a household
number (EIN).
employer sending Forms W-2 for household employees
and you did not include the household employee's taxes Box f—Employer's name. Enter the same name as
on Forms 941, 941-SS, 943, or 944. shown on your Forms 941, 941-SS, 943, 944, CT-1, or
Medicare govt. emp. Check this box if you are a U.S., Schedule H (Form 1040).
state, or local agency filing Forms W-2 for employees Box g—Employer's address and ZIP code. Enter your
subject only to Medicare tax. See Government employers. address.

General Instructions for Forms W-2 and W-3 (2023) -23-

Box h—Other EIN used this year. If you have used an Boxes 16 through 19 (not applicable to Forms
EIN (including a prior owner's EIN) on Forms 941, W-2AS, W-2CM, W-2GU, and W-2VI). Enter the total of
941-SS, 943, 944, or CT-1 submitted for 2023 that is state/local wages and income tax shown in their
different from the EIN reported on Form W-3 in box e, corresponding boxes on the Forms W-2 included with this
enter the other EIN used. Agents generally report the Form W-3. If the Forms W-2 show amounts from more
employer's EIN in box h. See Agent reporting. than one state or locality, report them as one sum in the
Employer's contact person, Employer's telephone appropriate box on Form W-3. Verify that the amount
number, Employer's fax number, and Employer's reported in each box is an accurate total of the Forms
email address. Include this information for use by the W-2.
SSA if any questions arise during processing. The SSA Federal employers reporting income taxes paid to the
will notify the employer by email or postal mail to correct CNMI under the 5517 agreement, enter the total of CNMI
and resubmit reports from the information provided on wages on the Forms W-2 in box 16. Enter the total of
Form W-3. income taxes shown on the Forms W-2 paid to the CNMI
in box 17. See Federal employers in the CNMI, earlier, for
Payroll service providers, enter your client's more information.
! information for these fields.
CAUTION
Reconciling Forms W-2, W-3, 941, 941-SS, 943,
The amounts to enter in boxes 1 through 19, 944, CT-1, and Schedule H (Form 1040)
TIP described next, are totals from only the Forms Reconcile the amounts shown in boxes 2, 3, 5, and 7 from
W-2 (excluding any Forms W-2 marked “VOID”) all 2023 Forms W-3 with their respective amounts from
that you are sending with this Form W-3. the 2023 yearly totals from the quarterly Forms 941 or
941-SS or annual Forms 943, 944, CT-1 (box 2 only), and
Boxes 1 through 8. Enter the totals reported in boxes 1 Schedule H (Form 1040). When there are discrepancies
through 8 on the Forms W-2. between amounts reported on Forms W-2 and W-3 filed
Box 9. Do not enter an amount in box 9. with the SSA and on Forms 941, 941-SS, 943, 944, CT-1,
or Schedule H (Form 1040) filed with the IRS, you will be
Box 10—Dependent care benefits (not applicable to contacted to resolve the discrepancies.
Forms W-2AS, W-2CM, W-2GU, and W-2VI). Enter the
total reported in box 10 on Forms W-2. To help reduce discrepancies on Forms W-2:
Box 11—Nonqualified plans. Enter the total reported in !
CAUTION
box 11 on Forms W-2.
• Report bonuses as wages and as social security and
Box 12a—Deferred compensation. Enter the total of all Medicare wages on Form W-2; and on Forms 941,
amounts reported with codes D through H, S, Y, AA, BB, 941-SS, 943, 944, and Schedule H (Form 1040).
and EE in box 12 on Forms W-2. Do not enter a code. • Report both social security and Medicare wages and
The total of Form W-2 box 12 amounts reported taxes separately on Forms W-2 and W-3; and on Forms
with codes A through C, J through R, T through 941, 941-SS, 943, 944, and Schedule H (Form 1040).
!
CAUTION W, Z, DD, FF, GG, and HH is not reported on • Report social security taxes withheld on Form W-2 in
Form W-3. box 4, not in box 3.
• Report Medicare taxes withheld on Form W-2 in box 6,
Box 13—For third-party sick pay use only. Leave this not in box 5.
box blank. See Form 8922. • Do not report a nonzero amount in box 4 if boxes 3 and
7 are both zero.
Box 14—Income tax withheld by payer of third-party
• Do not report a nonzero amount in box 6 if box 5 is
sick pay. Complete this box only if you are the employer zero.
and have employees who had federal income tax withheld
• Do not report an amount in box 5 that is less than the
on third-party payments of sick pay. Show the total sum of boxes 3 and 7.
income tax withheld by third-party payers on payments to
• Make sure that the social security wage amount for
all of your employees. Although this tax is included in the each employee does not exceed the annual social
box 2 total, it must be separately shown here. security wage base limit ($160,200 for 2023).
Box 15—State/Employer's state ID number (territorial • Do not report noncash wages that are not subject to
ID number for Forms W-2AS, W-2CM, W-2GU, and social security or Medicare taxes as social security or
W-2VI). Enter the two-letter abbreviation for the name of Medicare wages.
the state or territory being reported on Form(s) W-2. Also • If you use an EIN on any quarterly Forms 941 or 941-SS
enter your state- or territory-assigned ID number. If the for the year (or annual Forms 943, 944, CT-1, or
Forms W-2 being submitted with this Form W-3 contain Schedule H (Form 1040)) that is different from the EIN
wage and income tax information from more than one reported in box e on Form W-3, enter the other EIN in box
state or territory, enter an “X” under “State” and do not h on Form W-3.
enter any state or territory ID number. To reduce the discrepancies between amounts
Federal employers reporting income taxes paid to the reported on Forms W-2 and W-3; and Forms 941,
CNMI under the 5517 agreement, enter the employer’s 941-SS, 943, 944, CT-1, and Schedule H (Form 1040):
identification number in box 15. See Federal employers in • Be sure that the amounts on Form W-3 are the total
the CNMI, earlier, for more information. amounts from Forms W-2.

-24- General Instructions for Forms W-2 and W-3 (2023)

• Reconcile Form W-3 with your four quarterly Forms 941 Do not use Form W-2c to report corrections to back
or 941-SS (or annual Forms 943, 944, CT-1, or pay. Instead, see Pub. 957, Reporting Back Pay and
Schedule H (Form 1040)) by comparing amounts reported Special Wage Payments to the Social Security
for: Administration, and Form SSA-131, Employer Report of
1. Income tax withholding (box 2). Special Wage Payments.
2. Social security wages, Medicare wages and tips, Do not use Form W-2c to correct Form W-2G, Certain
and social security tips (boxes 3, 5, and 7). Form W-3 Gambling Winnings. Instead, see the General Instructions
should include Forms 941 or 941-SS; or Forms 943, 944, for Certain Information Returns for the current reporting
or Schedule H (Form 1040) adjustments only for the year.
current year. If the Forms 941, 941-SS, 943, or 944 Use Form W-3c to send Copy A of Form W-2c to the
adjustments include amounts for a prior year, do not SSA. Always file Form W-3c when submitting one or more
report those prior year adjustments on the current year Forms W-2c.
Forms W-2 and W-3. E-filing Forms W-2c and W-3c. The SSA encourages
3. Social security and Medicare taxes (boxes 4 and 6). all employers to e-file using its secure BSO website.
The amounts shown on the four quarterly Forms 941 or E-filing can save you time and effort and helps ensure
941-SS (or annual Forms 943, 944, or Schedule H (Form accuracy. See E-filing.
1040)), including current year adjustments, should be
approximately twice the amounts shown on Form W-3. Where to file paper Forms W-2c and W-3c. If you use
the U.S. Postal Service, send Forms W-2c and W-3c to:
Amounts reported on Forms W-2 and W-3; and Forms
941, 941-SS, 943, 944, CT-1, or Schedule H (Form 1040) Social Security Administration
may not match for valid reasons. If they do not match, you Direct Operations Center
should determine that the reasons are valid. Retain your P.O. Box 3333
reconciliation information in case you receive inquiries Wilkes-Barre, PA 18767-3333
from the IRS or the SSA.
If you use a carrier other than the U.S. Postal
You may have a discrepancy when reconciling
Service, send Forms W-2c and W-3c to:
! Forms W-2 and W-3 to Forms 941, 941-SS, 943,
CAUTION 944, CT-1, or Schedule H (Form 1040), if you
Social Security Administration
utilized any of the COVID-19 tax relief. You should Direct Operations Center
consider that qualified sick leave wages and qualified Attn: W-2c Process
family leave wages for leave taken before April 1, 2021, 1150 E. Mountain Drive
aren’t subject to the employer share of social security tax. Wilkes-Barre, PA 18702-7997

General Instructions for Forms W-2c Go to IRS.gov/PDS for a list of IRS-designated private
delivery services.
and W-3c Do not send Forms W-2, W-2AS, W-2CM,
Applicable forms. Use with the current version of Form TIP W-2GU, or W-2VI to either of these addresses.
W-2c and the current version of Form W-3c. Instead, see Where to file paper Forms W-2 and
W-3.
Purpose of forms. Use Form W-2c to correct errors on
Forms W-2, W-2AS, W-2CM, W-2GU, W-2VI, or W-2c When to file. File Forms W-2c and W-3c as soon as
filed with the SSA. Also use Form W-2c to provide possible after you discover an error. Also provide Form
corrected Forms W-2, W-2AS, W-2CM, W-2GU, W-2VI, W-2c to employees as soon as possible.
or W-2c to employees.
Corrections reported on Form W-2c may require you to How to complete. If you file Forms W-2c and W-3c on
make corrections to your previously filed employment tax paper, make all entries using dark or black ink in 12-point
Courier font, if possible, and make sure all copies are
returns using the corresponding “X” form, such as Form
legible. See How to complete Form W-2.
941-X, Adjusted Employer's QUARTERLY Federal Tax
Return or Claim for Refund; Form 943-X, Adjusted If any item shows a change in the dollar amount and
Employer's Annual Federal Tax Return for Agricultural one of the amounts is zero, enter “-0-.” Do not leave the
Employees or Claim for Refund; Form 944-X, Adjusted box blank.
Employer's ANNUAL Federal Tax Return or Claim for Who may sign Form W-3c. Generally, employers must
Refund; or Form CT-1X, Adjusted Employer's Annual sign Form W-3c. See Who may sign Form W-3.
Railroad Retirement Tax Return or Claim for Refund. See
section 13 of Pub. 15 (Circular E) and the Instructions for
Form CT-1X for more information. If you are making Special Situations for Forms W-2c
corrections to a previously filed Schedule H (Form 1040) and W-3c
(for 2019, Schedule H (Form 1040 or 1040-SR)), see Pub.
926, Household Employer's Tax Guide. If an employee Undeliverable Forms W-2c. See Undeliverable Forms
repaid you for wages received in a prior year, also see W-2.
Repayments.

General Instructions for Forms W-2 and W-3 (2023) -25-

Correcting Forms W-2 and W-3 Correcting an incorrect tax year and/or EIN incorrect-
Corrections. Use the current version of Form W-2c to ly reported on Form W-2 or Form W-3. To correct an
correct errors (such as incorrect name, SSN, or amount) incorrect tax year and/or EIN on a previously submitted
on a previously filed Form W-2 or Form W-2c. File Copy A Form W-2 or Form W-3, you must prepare two sets of
of Form W-2c with the SSA. To e-file your corrections, see Forms W-2c and W-3c.
Correcting wage reports. • Prepare one Form W-3c along with a Form W-2c for
each affected employee. On the Form W-3c, enter the
If the SSA issues your employee a replacement card incorrect tax year in box a and the incorrect EIN originally
after a name change, or a new card with a different social reported in box h. Enter in the “Previously reported” boxes
security number after a change in alien work status, file a the money amounts that were on the original Form W-2. In
Form W-2c to correct the name/SSN reported on the most the “Correct information” boxes, enter zeros.
recently filed Form W-2. It is not necessary to correct the • Prepare a second Form W-3c along with a second
prior years if the previous name and number were used Form W-2c for each affected employee. On the Form
for the years prior to the most recently filed Form W-2. W-3c, enter the correct tax year in box a and/or the
File Form W-3c whenever you file a Form W-2c with the correct EIN in box e. Enter zeros in the “Previously
SSA, even if you are only filing a Form W-2c to correct an reported” boxes, and enter the correct money amounts in
employee's name or SSN. However, see Employee's the “Correct information” boxes.
incorrect address on Form W-2, later, for information on
correcting an employee's address. See Correcting an Correcting more than one Form W-2 for an employee.
incorrect tax year and/or EIN incorrectly reported on Form There are two ways to prepare a correction for an
W-2 or Form W-3, later, if an error was made on a employee for whom more than one Form W-2 was filed
previously filed Form W-3. under the same EIN for the tax year. You can (1) consider
all the Forms W-2 when determining the amounts to enter
If you discover an error on Form W-2 after you issue it on Form W-2c, or (2) file a single Form W-2c to correct
to your employee but before you send it to the SSA, check only the incorrect Form W-2.
the “VOID” box at the top of the incorrect Form W-2 on
Copy A. Prepare a new Form W-2 with the correct However, state, local, and federal government
information, and send Copy A to the SSA. Write employers who are preparing corrections for Medicare
“CORRECTED” on the employee's new copies (B, C, and Qualified Government Employment (MQGE) employees
2), and furnish them to the employee. If the “VOID” Form must also follow the instructions in the Caution for state,
W-2 is on a page with a correct Form W-2, send the entire local, and federal government employers in the Specific
page to the SSA. The “VOID” form will not be processed. Instructions for Form W-2c.
Do not write “CORRECTED” on Copy A of Form W-2. Correcting more than one kind of form. You must use
If you are making a correction for previously filed Forms a separate Form W-3c for each type of Form W-2 (Forms
941, 941-SS, 943, 944, or CT-1, use the corresponding W-2, W-2AS, W-2CM, W-2GU, W-2VI, or W-2c) being
“X” forms, such as Forms 941-X, 943-X, 944-X, or CT-1X corrected. You must also use a separate Form W-3c for
for the return period in which you found the error. See each kind of payer/employer combination in box c. If you
section 13 of Pub. 15 (Circular E) and the Instructions for are correcting more than one kind of form, please group
Form CT-1X for more details. If you are making forms of the same kind of payer/employer combination,
corrections to a previously filed Schedule H (Form 1040) and send them in separate groups.
(for 2019, Schedule H (Form 1040 or 1040-SR)), see Pub. Employee's incorrect address on Form W-2. If you
926. Issue the employee a Form W-2c if the error filed a Form W-2 with the SSA that reported an incorrect
discovered was for the prior year and Form W-2 was filed address for the employee, but all other information on the
with the SSA. Form W-2 was correct, do not file Form W-2c with the
Correcting an employee's name and/or SSN only. If SSA merely to correct the address.
you are correcting only an employee's name and/or SSN, However, if the address was incorrect on the Form W-2
complete Form W-2c boxes d through i. Do not complete furnished to the employee, you must do one of the
boxes 1 through 20. Advise your employee to correct the following.
SSN and/or name on their original Form W-2. • Issue a new, corrected Form W-2 to the employee that
If your employee is given a new social security card includes the new address. Indicate “REISSUED
following an adjustment to their resident status that shows STATEMENT” on the new copies. Do not send Copy A of
a different name or SSN, file a Form W-2c for the most Form W-2 to the SSA.
current year only. • Issue a Form W-2c to the employee that shows the
correct address in box i and all other correct information.
Correcting an employee's name and SSN if the SSN Do not send Copy A of Form W-2c to the SSA.
was reported as blanks or zeros and the employee • Reissue the Form W-2 with the incorrect address to the
name was reported as blanks. If you need to correct an employee in an envelope showing the correct address or
employee's name and SSN, and the SSN was reported as otherwise deliver it to the employee.
blanks or zeros and the employee's name was reported
as blanks, do not use Form W-2c to report the corrections. Two Forms W-2 were filed under the same EIN, but
You must contact the SSA at 800-772-6270 for only one should have been filed.
instructions. Example. Two Forms W-2 were submitted for Taylor
Smith under the same EIN for the same tax year. One

-26- General Instructions for Forms W-2 and W-3 (2023)

Form W-2 correctly reported social security wages of enter the employee’s previously reported full name in box
$20,000. The other Form W-2 incorrectly reported social g exactly as it was previously reported. If the previous
security wages of $30,000. There are two ways to correct reported name was reported as blanks or not available,
this situation. then box g should be all blanks.
• File a Form W-3c along with one Form W-2c, entering For boxes f and g, if both the previous SSN and
$50,000 in box 3 under “Previously reported” and $20,000
! the previous name were reported as blanks, do
in box 3 under “Correct information”; or CAUTION not use Form W-2c. Contact the SSA at
• File a Form W-3c along with one Form W-2c, entering 800-772-6270.
$30,000 in box 3 under “Previously reported” and $0.00 in
box 3 under “Correct information.” Box h—Employee's first name and initial, Last name,
Two Forms W-2 were filed under the same EIN, but Suff. Always enter the employee's correct name. See
wages on one were incorrect. Boxes e and f—Employee's name and address for name
formatting information.
Example. Two Forms W-2 were submitted for Taylor
Smith under the same EIN for the same tax year. One Box i—Employee's address and ZIP code. Always
Form W-2 correctly reported social security wages of enter the employee’s correct address. See Boxes e and
$20,000. The other Form W-2 incorrectly reported social f—Employee's name and address for address formatting
security wages of $30,000, whereas $25,000 should have information.
been reported. There are two ways to correct this You must enter the employee's full name in boxes
situation. g and h.
• File a Form W-3c along with one Form W-2c, entering !
$50,000 in box 3 under “Previously reported” and $45,000
CAUTION

in box 3 under “Correct information”; or Boxes 1 through 20. For the items you are changing,
• File a Form W-3c along with one Form W-2c, entering enter under “Previously reported” the amount reported on
$30,000 in box 3 under “Previously reported” and $25,000 the original Form W-2 or the amount reported on a
in box 3 under “Correct information.” previously filed Form W-2c. Enter the correct amount
under “Correct information.”
Specific Instructions for Form W-2c Do not make an entry in any of these boxes on Copy A
unless you are making a change. However, see the
Box a—Employer's name, address, and ZIP code. Caution for state, local, or federal government employers
This entry should be the same as shown on your Forms below.
941, 941-SS, 943, 944, CT-1, or Schedule H (Form 1040)
(for 2019, Schedule H (Form 1040 or 1040-SR)). Box 2—Federal income tax withheld. Use this box only
to make corrections because of an administrative error.
Box b—Employer's Federal EIN. Show the correct (An administrative error occurs only if the amount you
9-digit EIN assigned to you by the IRS in the format entered in box 2 of the incorrect Form W-2 was not the
00-0000000. Do not truncate your EIN. See Regulations amount you actually withheld.) If you are correcting Forms
section 31.6051-1(a)(1)(i)(A) and 301.6109-4(b)(2)(iv). W-2AS, W-2CM, W-2GU, or W-2VI, box 2 is for income
Box c—Tax year/Form corrected. If you are correcting tax withheld for the applicable U.S. territory.
Form W-2, enter all 4 digits of the year of the form you are Boxes 5 and 6. Complete these boxes to correct
correcting. If you are correcting Form W-2AS, W-2CM, Medicare wages and tips and Medicare tax withheld.
W-2GU, W-2VI, or W-2c, enter all 4 digits of the year you (Exception—do not correct Additional Medicare Tax
are correcting, and also enter “AS,” “CM,” “GU,” “VI,” or “c” withheld unless you need to correct an administrative
to designate the form you are correcting. For example, error. An administrative error occurs only if the amount
entering “2021” and “GU” indicates that you are correcting you entered in box 6 of the incorrect Form W-2 is not the
a 2021 Form W-2GU. amount you actually withheld.) State, local, or federal
Box d—Employee's correct SSN. You must enter the government employers should also use these boxes to
employee's correct SSN even if it was correct on the correct MQGE wages. Box 5 must equal or exceed the
original Form W-2. If you are correcting an employee's sum of boxes 3 and 7.
SSN, you must also complete boxes e through i. A state, local, or federal government employer
Box e—Corrected SSN and/or name. Check this box ! correcting only social security wages and/or social
CAUTION security tips (boxes 3 and/or 7) for an MQGE
only if you are correcting the employee’s SSN, name, or
both SSN and name. You must also complete boxes d employee must also complete Medicare wages and tips in
and f through i. box 5. Enter the total Medicare wages and tips, including
MQGE-only wages, even if there is no change to the total
Box f—Employee's previously reported SSN. Medicare wages and tips previously reported.
Complete this box if you are correcting an employee’s
previously reported incorrect SSN and/or name. If the Boxes 8, 10, and 11. Use these boxes to correct
previous SSN was reported as blanks or not available, allocated tips, dependent care benefits, or deferrals and
then box f should be all zeros. distributions relating to nonqualified plans.
Box g—Employee's previously reported name. Box 12—Codes. Complete these boxes to correct any of
Complete this box if you are correcting an employee’s the coded items shown on Forms W-2. Examples include
previously reported incorrect SSN and/or name. You must uncollected social security and/or Medicare taxes on tips,

General Instructions for Forms W-2 and W-3 (2023) -27-

taxable cost of group-term life insurance coverage over Box c—Kind of Payer. Check the box that applies to
$50,000, elective deferrals (codes D through H, S, Y, AA, you. Check only one box. If your previous Form W-3 or
BB, and EE), sick pay not includible as income, and Form W-3SS was checked incorrectly, report your prior
employee business expenses. See Box 12—Codes in incorrect payer type in the “Explain decreases here” area
Specific Instructions for Form W-2 for the proper format to below boxes 18 and 19.
use in reporting coded items from box 12 of Forms W-2. 941/941-SS. Check this box if you file Form 941 or
Employers should enter both the code and dollar Form 941-SS. If you are a railroad employer sending
amount for both fields on Form W-2c. Forms W-2c for employees covered under the RRTA,
If a single Form W-2c does not provide enough blank check the “CT-1” checkbox.
spaces for corrections, use additional Forms W-2c. Military. Check this box if you are a military employer
correcting Forms W-2 for members of the uniformed
Box 13. Check the boxes in box 13, under “Previously
services.
reported,” as they were checked on the original Form
W-2. Under “Correct information,” check them as they 943. Check this box if you file Form 943 and you are
should have been checked. For example, if you checked correcting Forms W-2 for agricultural employees. For
the “Retirement plan” box on the original Form W-2 by nonagricultural employees, send Forms W-2c with a
mistake, check the “Retirement plan” checkbox in box 13 separate Form W-3c, generally with the 941/941-SS box
under “Previously reported,” but do not check the checked.
“Retirement plan” checkbox in box 13 under “Correct 944. Check this box if you file Form 944.
information.” CT-1. Check this box if you are a railroad employer
correcting Forms W-2 for employees covered under the
Box 14. Use this box to correct items reported in box 14 RRTA. If you also have to correct forms of employees who
of the original Form W-2 or on a prior Form W-2c. If are subject to social security and Medicare taxes,
possible, complete box 14 on Copies B, C, 1, and 2 of complete a separate Form W-3c with the “941/941-SS”
Form W-2c only, not on Copy A. box or “944” box checked instead.
Boxes 15 through 20—State/Local taxes. If your only Hshld. emp. Check this box if you are a household
changes to the original Form W-2 are to state or local employer correcting Forms W-2 for household employees
data, do not send Copy A of Form W-2c to the SSA. and you filed a Schedule H (Form 1040) (for 2019,
Instead, send Form W-2c to the appropriate state or local Schedule H (Form 1040 or 1040-SR)). If you also have to
agency and furnish copies to your employees. correct forms of employees who are not household
employees, complete a separate Form W-3c.
Correcting state information. Contact your state or
locality for specific reporting information. Medicare govt. emp. Check this box if you are a U.S.,
state, or local agency filing corrections for employees
subject only to Medicare taxes.
Specific Instructions for Form W-3c
Box c—Kind of Employer. Check the box that applies
Do not staple or tape the Forms W-2c to Form W-3c or to to you. Check only one box. If your previous Form W-3 or
each other. File a separate Form W-3c for each tax year, W-3SS was checked incorrectly, report your prior
for each type of form, and for each kind of payer/employer incorrect employer type in the “Explain decreases here”
combination. (The “Third-party sick pay” indicator box area below boxes 18 and 19.
does not designate a separate kind of payer or employer.)
None apply. Check this box if none of the checkboxes
Make a copy of Form W-3c for your records.
described next apply to you.
In the money boxes of Form W-3c, total the amounts 501c non-govt. Check this box if you are a
from each box and column on the Forms W-2c you are non-governmental tax-exempt 501(c) organization. Types
sending. of 501(c) non-governmental organizations include private
Box a—Tax year/Form corrected. Enter all 4 digits of foundations, public charities, social and recreation clubs,
the year of the form you are correcting and the type of and veterans organizations. For additional examples of
form you are correcting. For the type of form, enter “2,” 501(c) non-governmental organizations, see chapters 3
“2AS,” “2CM,” “2GU,” “2VI,” “2c,” “3,” “3SS,” or “3c.” For and 4 of Pub. 557, Tax-Exempt Status for Your
example, entering “2021” and “2” indicates that all the Organization.
forms being corrected are 2021 Forms W-2. State/local non-501c. Check this box if you are a state
or local government or instrumentality. This includes
Box b—Employer's name, address, and ZIP code. cities, townships, counties, special-purpose districts,
This should be the same as shown on your Forms 941, public school districts, or other publicly owned entities
941-SS, 943, 944, CT-1, or Schedule H (Form 1040) (for with governmental authority.
2019, Schedule H (Form 1040 or 1040-SR)). Include the State/local 501c. Check this box if you are a state or
suite, room, or other unit number after the street address. local government or instrumentality, and you have
If the post office does not deliver mail to the street received a determination letter from the IRS indicating that
address and you use a P.O. box, show the P.O. box you are also a tax-exempt organization under section
number instead of the street address. 501(c)(3).
The IRS will not use Form W-3c to update your Federal govt. Check this box if you are a federal
TIP address of record. If you wish to change your government entity or instrumentality.
address, file Form 8822 or Form 8822-B.

-28- General Instructions for Forms W-2 and W-3 (2023)

Box c—Third-party sick pay. Check this box if you are SSA. Instead, send the forms to the appropriate state or
a third-party sick pay payer (or are reporting sick pay local agency and furnish copies of Form W-2c to your
payments made by a third party) correcting Forms W-2 employees.
with the “Third-party sick pay” checkbox in box 13 of Form Explain decreases here. Explain any decrease to
W-2c under “Correct information” checked. File a amounts “Previously reported.” Also report here any
separate Form W-3c for each payer/employer previous incorrect entry in box c, “Kind of Payer” or “Kind
combination reporting “Third-party sick pay” on Form of Employer.” Enclose (but do not attach) additional
W-2c. sheets explaining your decreases, if necessary. Include
Box d—Number of Forms W-2c. Show the number of your name and EIN on any additional sheets.
individual Forms W-2c filed with this Form W-3c or enter Signature. Sign and date the form. Also enter your title
“-0-” if you are correcting only a previously filed Form W-3 and employer's contact person, employer's telephone
or Form W-3SS. number, employer's fax number, and employer's email
Box e—Employer's Federal EIN. Enter the correct address, if available. If you are not the employer, see Who
number assigned to you by the IRS in the following format: may sign Form W-3.
00-0000000. Do not truncate your EIN. See Regulations
section 31.6051-1(a)(1)(i)(A) and 301.6109-4(b)(2)(iv). If Privacy Act and Paperwork Reduction Act Notice.
you are correcting your EIN, enter the originally reported We ask for the information on Forms W-2 and W-3 to
federal EIN you used in box h. carry out the Internal Revenue laws of the United States.
We need it to figure and collect the right amount of tax.
Box f—Establishment number. You may use this box Section 6051 and its regulations require you to furnish
to identify separate establishments in your business. You wage and tax statements to employees, the Social
may file a separate Form W-3c, with Forms W-2c, for Security Administration, and the Internal Revenue
each establishment or you may use a single Form W-3c Service. Section 6109 requires you to provide your
for all Forms W-2c. You do not have to complete this item; employer identification number (EIN). Failure to provide
it is optional. this information in a timely manner or providing false or
Box g—Employer's state ID number. You are not fraudulent information may subject you to penalties.
required to complete this box. This number is assigned by You are not required to provide the information
the individual state where your business is located. requested on a form that is subject to the Paperwork
However, you may want to complete this item if you use Reduction Act unless the form displays a valid OMB
copies of this form for your state returns. control number. Books or records relating to a form or its
Box h—Employer's originally reported Federal EIN. instructions must be retained as long as their contents
Your correct number must appear in box e. Make an entry may become material in the administration of any Internal
here only if the number on the original form was incorrect. Revenue law.
Box i—Incorrect establishment number. You may use Generally, tax returns and return information are
this box to correct an establishment number. confidential, as required by section 6103. However,
Box j—Employer's incorrect state ID number. Use section 6103 allows or requires the Internal Revenue
this box to make any corrections to your previously Service to disclose or give the information shown on your
reported state ID number. return to others as described in the Code. For example,
we may disclose your tax information to the Department of
Boxes 1 through 8, 10, and 11. Enter the total of Justice for civil and/or criminal litigation, and to cities,
amounts reported in boxes 1 through 8, 10, and 11 as states, the District of Columbia, and U.S. commonwealths
“Previously reported” and “Correct information” from and territories for use in administering their tax laws. We
Forms W-2c. may also disclose this information to other countries under
Box 12a—Deferred compensation. Enter the total of a tax treaty, to federal and state agencies to enforce
amounts reported with codes D through H, S, Y, AA, BB, federal nontax criminal laws, or to federal law
and EE as “Previously reported” and “Correct information” enforcement and intelligence agencies to combat
from Forms W-2c. terrorism.
The total of Form W-2c box 12 amounts reported The time needed to complete and file these forms will
! with codes A through C, J through R, T through vary depending on individual circumstances. The
CAUTION W, Z, DD, FF, GG, and HH is not reported on estimated average times are: Form W-2—30 minutes;
Form W-3c. Form W-3—28 minutes; Form W-2c—40 minutes; Form
W-3c—51 minutes. If you have comments concerning the
Box 14—Inc. tax w/h by third-party sick pay payer. accuracy of these time estimates or suggestions for
Enter the amount previously reported and the corrected making these forms simpler, we would be happy to hear
amount of income tax withheld on third-party payments of from you. You can send us comments from IRS.gov/
sick pay. Although this tax is included in the box 2 FormComments. Or you can write to the Internal Revenue
amounts, it must be shown separately here. Service, Tax Forms and Publications Division, 1111
Boxes 16 through 19. If your only changes to the Forms Constitution Ave. NW, IR-6526, Washington, DC 20224.
W-2c and W-3c are to the state and local data, do not Do not send Forms W-2 and W-3 to this address. Instead,
send either Copy A of Form W-2c or Form W-3c to the see Where to file paper Forms W-2 and W-3.

General Instructions for Forms W-2 and W-3 (2023) -29-

 Form W-2 Reference Guide for Box 12 Codes

A Uncollected social security or RRTA tax on tips L Substantiated employee business expense Y Deferrals under a section 409A nonqualified
reimbursements deferred compensation plan
B Uncollected Medicare tax on tips (but not M Uncollected social security or RRTA tax on Z Income under a nonqualified deferred
Additional Medicare Tax) taxable cost of group-term life insurance over compensation plan that fails to satisfy
$50,000 (former employees only) section 409A
C Taxable cost of group-term life insurance over N Uncollected Medicare tax on taxable cost of AA Designated Roth contributions under a
$50,000 group-term life insurance over $50,000 (but not section 401(k) plan
Additional Medicare Tax) (former employees
only)
D Elective deferrals under a section 401(k) cash P Excludable moving expense reimbursements BB Designated Roth contributions under a
or deferred arrangement plan (including a paid directly to members of the Armed Forces section 403(b) plan
SIMPLE 401(k) arrangement)
E Elective deferrals under a section 403(b) salary Q Nontaxable combat pay DD Cost of employer-sponsored health
reduction agreement coverage
F Elective deferrals under a section 408(k)(6) R Employer contributions to an Archer MSA EE Designated Roth contributions under a
salary reduction SEP governmental section 457(b) plan
G Elective deferrals and employer contributions S Employee salary reduction contributions under FF Permitted benefits under a qualified small
(including nonelective deferrals) to a section a section 408(p) SIMPLE plan employer health reimbursement
457(b) deferred compensation plan arrangement
H Elective deferrals to a section 501(c)(18)(D) T Adoption benefits GG Income from qualified equity grants under
tax-exempt organization plan section 83(i)
J Nontaxable sick pay V Income from exercise of nonstatutory stock HH Aggregate deferrals under section 83(i)
option(s) elections as of the close of the calendar year
K 20% excise tax on excess golden parachute W Employer contributions (including employee
payments contributions through a cafeteria plan) to an
employee's health savings account (HSA)

See Box 12 Codes.

Form W-2 Box 13 Retirement Plan Checkbox Decision Chart

Type of Plan Conditions Check Retirement Plan Box?

Defined benefit plan (for example, a traditional pension Employee qualifies for employer funding into the plan, Yes
plan) due to age/years of service—even though the
employee may not be vested or ever collect benefits
Defined contribution plan (for example, a 401(k) or Employee is eligible to contribute but does not elect to No
403(b) plan, a Roth 401(k) or 403(b) account, but not a contribute any money in this tax year
457 plan)
Defined contribution plan (for example, a 401(k) or Employee is eligible to contribute and elects to Yes
403(b) plan, a Roth 401(k) or 403(b) account, but not a contribute money in this tax year
457 plan)
Defined contribution plan (for example, a 401(k) or Employee is eligible to contribute but does not elect to Yes
403(b) plan, a Roth 401(k) or 403(b) account, but not a contribute any money in this tax year, but the employer
457 plan) does contribute funds
Defined contribution plan (for example, a 401(k) or Employee contributed in past years but not during the No (even if the account value grows due to gains in the
403(b) plan, a Roth 401(k) or 403(b) account, but not a current tax year under report investments)
457 plan)
Profit-sharing plan Plan includes a grace period after the close of the plan Yes, unless the employer contribution is purely
year when profit sharing can be added to the discretionary and no contribution is made by end of
participant's account plan year

See Box 13 Checkboxes.

-30- General Instructions for Forms W-2 and W-3 (2023)

 Nonqualified Deferred Compensation Reporting Example Chart

Example How to report on Form W-2

Example 1—Deferral, immediately vested (no risk of forfeiture). Box 1 = $180 ($200 – $20)
Regular wages: $200 Boxes 3 and 5 = $210 ($200 + $10)
Defer, vested: $20 Box 11 = $0
Employer match, vested: $10
Example 2—Deferral, delayed vesting (risk of forfeiture) of employee and employer Box 1 = $180 ($200 – $20)
portions. Boxes 3 and 5 = $180 ($200 – $20)
Regular wages: $200 Box 11 = $0
Defer, not vested: $20
Employer match, not vested: $10
Example 3—Deferral, immediately vested. Prior-year deferrals and employer Box 1 = $180 ($200 – $20)
matches are now vesting. Boxes 3 and 5 = $315 ($200 + $100 + $15)
Regular wages: $200 Box 11 = $115 ($100 + $15)
Defer, vested: $20
Vesting of prior-year deferrals and employer matches: $100 + $15 (earnings on
$100)
Example 4—No deferrals, but there are distributions. No vesting of prior-year Box 1 = $150 ($100 + $50)
deferrals. Boxes 3 and 5 = $100
Regular wages: $100 Box 11 = $50
Distribution: $50
Special Rule for W-2 Box 11: Distributions and Deferrals in the Same Year—Form If, in the same year, there are NQDC distributions and deferrals that are reportable
SSA-131 in boxes 3 and/or 5 (current or prior-year deferrals), do not complete box 11.
Instead, report on Form SSA-131 the total amount the employee earned during the
year. Generally, the amount earned by the employee during the tax year for
purposes of item 6 of Form SSA-131 is the amount reported in box 1 of Form W-2
plus current-year deferrals that are vested (employee and employer portions) less
distributions. Do not consider prior-year deferrals that are vesting in the current
year. If there was a plan failure, the box 1 amount in this calculation should be as if
there were no plan failure. Submit the Form SSA-131 to the nearest SSA office or
give it to the employee.
Example 5—Deferral, immediately vested, and distributions. No vesting of Box 1 = $230 ($200 – $20 + $50)
prior-year deferrals. Boxes 3 and 5 = $210 ($200 + $10)
Regular wages: $200 Box 11 = $0
Defer, vested: $20
Employer match, vested: $10 Form SSA-131 = $210 ($230 (box 1) – $50 (distribution) + $30 (vested employee
Distribution: $50 and employer deferrals))
Example 6—Deferral, delayed vesting, and distributions. No vesting of prior-year Box 1 = $230 ($200 – $20 + $50)
deferrals. Boxes 3 and 5 = $180 ($200 – $20)
Regular wages: $200 Box 11 = $50
Defer, not vested: $20
Distribution: $50
Example 7—Deferral, immediately vested, and distributions. Prior-year deferrals Box 1 = $230 ($200 – $20 + $50)
and employer matches are now vesting. Boxes 3 and 5 = $315 ($200 + $100 + $15)
Regular wages: $200 Box 11 = $0
Defer, vested: $20
Distribution: $50 Form SSA-131 = $200 ($230 (box 1) – $50 (distribution) + $20 (vested deferral))
Vesting of prior-year deferrals and employer matches: $100 + $15 (earnings on
$100)
Example 8—Deferral, delayed vesting, and distributions. Prior-year deferrals and Box 1 = $230 ($200 – $20 + $50)
employer matches are now vesting. Boxes 3 and 5 = $295 ($200 – $20 + $100 + $15)
Regular wages: $200 Box 11 = $0
Defer, not vested: $20
Distribution: $50 Form SSA-131 = $180 ($230 (box 1) – $50 (distribution))
Vesting of prior-year deferrals and employer matches: $100 + $15 (earnings on
$100)

See Nonqualified deferred compensation plans.

General Instructions for Forms W-2 and W-3 (2023) -31-

 Nonqualified Deferred Compensation Reporting Example Chart—(Continued)

Example How to report on Form W-2

Special Rule for Payment of Social Security, Medicare, and Unemployment Taxes Estimated Method
Under the estimated method, an employer may treat a reasonably estimated
If the amount cannot be reasonably ascertained (the employer is unable to amount as wages paid on the last day of the calendar year (the “first year”). If the
calculate an amount for a year by December 31), the employer can use two employer underestimates the amount deferred and, thereby, underdeposits social
methods. For example, immediately vested employer contributions to NQDC made security, Medicare, or FUTA taxes, it can choose to treat the shortfall as wages
late in the year would have no effect on Form W-2, box 1, but they would affect either in the first year or the first quarter of the next year. The shortfall does not
FICA and FUTA taxes. include income credited to the amount deferred after the first year. Conversely, if
the amount deferred is overestimated, the employer can claim a refund or credit. If
the employer chooses to treat the shortfall as wages in the first year, the employer
must issue a Form W-2c. Also, the employer must correct the information on the
Form 941 for the last quarter of the first year. In such a case, the shortfall will not be
treated as a late deposit subject to penalty if it is deposited by the employer's first
regular deposit date following the first quarter of the next year.

Lag Method
Under the lag method, an employer may calculate the end-of-the-year amount on
any date in the first quarter of the next calendar year. The amount deferred will be
treated as wages on that date, and the amount deferred that would otherwise have
been taken into account on the last day of the first year must be increased by
income earned on that amount through the date on which the amount is taken into
account.
Section 409A NQDC Plan Failure Box 12, code Z = $400
Example 9—Deferral, immediately vested. No distributions. Plan failure. • Amount in the plan account on December 31, 2010, not subject to risk of
Plan balance on January 1, 2010: $325, vested forfeiture and not included in prior-year income: $400 ($325 + $50 + $25)
Regular wages: $100 • Current-year distribution: $0
Defer, vested: $50 • $400 ($0 + $400)
Employer match, vested: $25 Box 1 = $450 ($100 – $50 + $400)
Plan failure in 2010. Boxes 3 and 5 = $125 ($100 + $25)
Box 11 = $0

Form SSA-131 = not required

Section 409A NQDC Plan Failure Box 12, code Z = $300
Example 10—Deferral, some delayed vesting, and distributions. Plan failure. • Amount in the plan account on December 31, 2010, not subject to risk of
Plan balance on January 1, 2010: $250 vested; $75 not vested forfeiture and not included in prior-year income: $100 ($250 + $50 – $200)
Regular wages: $100 • Current-year distribution: $200
Defer, vested: $50 • $100 + $200 = $300
Employer match, not vested: $25 Box 1 = $350 ($100 – $50 + $300 (code Z amount, which already includes the
Distribution: $200 distribution))
Plan failure in 2010. Boxes 3 and 5 = $100
Vesting of prior-year deferrals and employer matches: $0 Box 11 = $0

Form SSA-131 = $100 ($250 (what box 1 would have been without plan failure) –
$200 (distribution) + $50 (vested deferral))

See Nonqualified deferred compensation plans.

-32- General Instructions for Forms W-2 and W-3 (2023)

Index

Code W—Employer contributions to a health Individual taxpayer identification number

501(c) non-governmental organizations 23, 28 savings account (HSA) 20 (ITIN) 7, 15
Code Y—Deferrals under a section 409A Information reporting customer service site 4
nonqualified deferred compensation plan 20 IRS.gov 4
A Code Z—Income under section 409A on a
Additional Medicare Tax withheld 2, 10, 12, 17, nonqualified deferred compensation plan 20
19, 20 Common errors 5 K
Adoption benefits 7, 17, 20 Commonwealth of the Northern Mariana Kind of Employer 23, 28
Agent reporting 7 Islands 6 Kind of Payer 23, 28
Agricultural employers 9, 23, 28 Control number 16, 23
Allocated tips 18 Corrections 2, 25, 26
Corrections and VOID Forms W-2 2, 15
L
American Samoa 6
Archer MSA 8, 16, 17, 20 Cost of employer-sponsored health coverage 4, Lost Form W-2—reissued statement 11
21
B M
D
Bitcoin 13 Medicaid waiver payments 2
Box 14—Other 22 Deceased employee's wages 8 Medicare tax withheld 2, 12, 17
Business Services Online (BSO) 2-4, 25 Deferred compensation 24, 29 Medicare wages and tips 17
Dependent care benefits 18, 24 Military differential pay 11
Designated Roth contributions 8, 16, 21 Military employers 18, 23, 28
C Disability payments 2 Military Spouses Residency Relief Act
Calendar year basis 15 Due date(s) 5 (MSRRA) 3
Clergy and religious workers 8 Moving expenses 11, 20
Codes for box 12, Form W-2 18, 27, 30 E Multiple Forms W-2 issued to employee 15
Code A—Uncollected social security or RRTA tax
on tips 19 E-filing 3, 4, 25
Earned income credit (EIC) notice 3
N
Code AA—Designated Roth contributions under
a section 401(k) plan 21 Educational assistance programs 9, 16 Nonqualified compensation plans 20
Code B—Uncollected Medicare tax on tips 19 Election workers 9 Nonqualified deferred compensation plans 4, 11
Code BB—Designated Roth contributions under Elective deferrals 19, 20 Nonqualified Deferred Compensation Reporting
a section 403(b) plan 21 Electronic employee statements 3 Example Chart 30, 31
Code C—Taxable cost of group-term life Employee business expense reimbursements 9, Nonqualified plans 18, 24
insurance over $50,000 19 16, 20 Nonstatutory stock option(s) 20
Code D—Elective deferrals under section 401(k) Employee's name and address 16, 27 Nontaxable combat pay 20
cash or deferred arrangement (plan) 19 Employee's taxes paid by employer 9, 16
Code DD—Cost of employer-sponsored health Employer identification number (EIN) 16, 23, 27,
coverage 21 29
O
Code E—Elective deferrals under a section Employer's name and address 16, 23, 27, 28 Other EIN 24
403(b) salary reduction agreement 19
Employment tax information 4
Code EE—Designated Roth contributions under
a governmental section 457(b) plan 21 Establishment number 23, 29 P
Code F—Elective deferrals under a section Extensions 5, 7
408(k)(6) salary reduction SEP 20 Penalties 13
Civil damages for fraudulent filing of Forms
Code FF—Permitted benefits under a qualified F W-2 15
small employer health reimbursement
arrangement 21 Federal employers in the CNMI 9, 22 Exceptions to the penalty 14, 15
Code G—Elective deferrals and employer Federal income tax withheld 17 Failure to file correct information returns by the
contributions (including nonelective deferrals) Foreign agricultural workers 10 due date 14
to any governmental or nongovernmental Form 941 or 941-SS 23, 28 Failure to furnish correct payee statements 14
section 457(b) deferred compensation Intentional disregard of filing requirements 14
plan 20 Form 944 3, 23, 28
Form W-2 Copy 1 6 Intentional disregard of payee statement
Code GG—Income from qualified equity grants requirements 15
under section 83(i) 21 Forms W-2 for U.S. territories 3
Small businesses 14
Code H—Elective deferrals under section 501(c) Fringe benefits 10, 16
Privacy Act and Paperwork Reduction Act
(18)(D) tax-exempt organization plan 20 Furnishing Forms W-2 to employees 6 Notice 29
Code HH—Aggregate deferrals under section
83(i) elections as of the close of the calendar
year 22 G Q
Code J—Nontaxable sick pay 20 General Instructions for Forms W-2 and W-3 5 Qualified equity grants under section 83(i) 12
Code K—20% excise tax on excess golden General instructions for Forms W-2c and
parachute payments 20 Qualified small employer health reimbursement
W-3c 25 arrangement 21
Code L—Substantiated employee business Golden parachute payments 10, 20
expense reimbursements 20 Government employers 10, 23, 28
Code M—Uncollected social security or RRTA Governmental section 457(b) plans 3
R
tax on taxable cost of group-term life
insurance over $50,000 (for former Group-term life insurance 10, 17, 19 Railroad employers 12, 23, 28
employees). 20 Guam 6 Reconciling Forms W-2, W-3, 941, 941-SS, 943,
Code N—Uncollected Medicare tax on taxable 944, CT-1, and Schedule H (Form 1040) 24
cost of group-term life insurance over $50,000 H Reference Guide for Form W-2 Box 12 Codes 30
(for former employees) 20 Rejected wage reports 2
Code P—Excludable moving expense Health flexible spending arrangement (FSA) 2, Repayments, wages received in error 12
reimbursements paid directly to a member of 10 Retirement Plan Checkbox Decision Chart 30
the U.S. Armed Forces 20 Health savings account (HSA) 11, 20 Retirement plans 22, 30
Code Q—Nontaxable combat pay 20 Help 4
Code R—Employer contributions to an Archer Household employers 5, 9, 23, 28
MSA 20 How to complete a form 25
S
Code S—Employee salary reduction How to complete Form W-2 15 Scholarship and fellowship grants 13
contributions under a section 408(p) SIMPLE
plan 20 How to complete Form W-3 23 Severance payments 4
Code T—Adoption benefits 20 How to get forms and publications 4 Shipping and mailing Form W-2 6
Code V—Income from the exercise of Sick pay 13, 20, 29
nonstatutory stock option(s) 20 I Signing bonuses 17
SIMPLE retirement account 13, 17, 20
Income tax withheld 27

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Social security number (SSN) 2, 7, 15, 27 Terminating a business 13
Social security tax withheld 17 Third-party sick pay 23, 24, 29 V
Social security tips 18 Third-party sick pay recap reporting 22
Social security wages 17 Tier 1 railroad retirement (RRTA) tax 8, 12 Virtual currency 13
Special reporting situations for Form W-2 7 Tier 2 railroad retirement (RRTA) tax 8, 12 VOID Forms W-2 15, 26
Special situations for Forms W-2c and W-3c 25 Tips 16-19
Specific instructions for Form W-2 15 Total number of Forms W-2 23 W
Specific instructions for Form W-2c 27 TTY/TDD equipment 4
Wages 16
Specific instructions for Form W-3 23
Waiver from e-filing 3
Specific instructions for Form W-3c 28 U When to file 5, 25
State and local tax information 22
U.S. territories 3, 6 When to furnish Forms W-2 to employees 6
State or local 501(c) organizations 23, 28
Uncollected taxes on group-term life Where to file 6, 25
State or local non-501(c) organizations 23, 28
insurance 20 Who may sign 5, 25, 29
State or territorial ID number 24, 29
Uncollected taxes on tips 19 Who must file 5
Statutory employee 17, 22
Undeliverable Forms W-2 7, 25
Substitute forms 4
United States Virgin Islands 6
Successor/predecessor employers 13
USERRA contributions 13, 19, 22

T
Taxpayer identification numbers (TINs) 7, 15

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