FORM W-2
 
Below is a brief description of the Form W-2 fields. Important: This section is not intended to give all the information necessary to complete the form. If you want to learn more about filling out the Form W-2, see the IRS website.
 

 

a - Control number

This number can be used when corresponding with the Social Security Administration or the Internal Revenue Service regarding individual W-2 forms. Even though it is not mandatory that this box be completed, ADP populates this section with File Number and Company Code (Department Number, Corporation, Employee Status Code, and/or a forms count may also display depending on the copy) which gives each one a unique number. The literals "EIC" (for Earned Income Credit) will also print if the employee is coded as such.
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b - Employer identification number

The nine-digit number assigned by the IRS (format: 00-0000000). This should be the same number used for reporting on Form 941 or 943.
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c - Employer's name, address, and ZIP code

The employer's legal name, address, and zip code. It should be the same as shown on the Form 941 or 943. If the "Customer Info" field is populated on the EMPLR screen, the information will print on the W-2 just to the right of the box c title.
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d - Employee's social security number

The employee's social security number as shown on the social security card.
Location: Personal Details page of TotalChoice.
Exception: Payees that have been identified with an Taxpayer Identification Number (TIN) will be disqualified from Federal, State, and City W-2 paper and tape reporting.

 

e - Employee's first name and initial and Last name

The employee name should exactly match what is shown on the social security card (first, middle initial, last).
Note: Titles or academic degrees at the beginning or end of the employee's name (such as Dr., RN or Esq.) should never be used or printed on Form W-2.
Location: Personal Details page in TotalChoice.
Exception: Third-Party Payers of sick pay filing sick pay recap forms W-2 must enter "Third-Party Sick Pay Recap" in place of the employee’s name.

 

f - Employee's address and ZIP code

Note: This box is combined with box e (Employee's Name) on all copies except Copy A.
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1 - Wages, tips, other compensation

Includes regular wages, tips, sick pay, other compensation amounts, the cost of group-term life insurance in excess of $50,000 and any other fringe benefits subject to federal income tax.
GROSS (Taxable Fringe Benefits and Tips are included in Gross) - FEDERAL TAX EXEMPT WAGES - DEFERRED COMPENSATION (except section 501(c)(18) contributions) - MEALS - CAFE 125 BENEFITS (may vary depending on the benefit) + GROUP-TERM LIFE + THIRD-PARTY SICK PAY + OTHER COMPENSATION = WAGES, TIPS, AND OTHER COMPENSATION

Note: QTD amounts appear on Line 2 of the 941.
YTD amounts will appear in Box 1 on each employee W-2.
The total YTD amount for the company will appear in Box 1 of the W-3. This amount should balance to the sum of all four quarters on Line 2 of the 941.

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2 - Federal income tax withheld

The amount of federal income tax withheld from the employee's wages for the year. This amount is not reduced by any advance EIC payments made to the employee. Also includes the 20% excise tax withheld on excess golden parachute payments.
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3 - Social security wages

Total wages paid subject to employee social security tax to a maximum of $76,200 (for 2000). Includes taxable employee business expense payments reported in box 1, contributions to certain qualified cash or deferred compensation plans, and the value of fringe benefits. DOES NOT INCLUDE Allocated tips (box 8) or Social Security tips (box 7).

GROSS (Taxable Fringe Benefits and Tips are included in Gross) - SOCIAL SECURITY EXEMPT WAGES - MEALS - TIPS (Social Security Tips must print separately in Box 7 of the W-2) - CAFE 125 BENEFITS (may vary depending on the benefit) + GROUP-TERM LIFE + THIRD-PARTY SICKPAY = SOCIAL SECURITY WAGES (not to exceed the limit for the current year).

Note: QTD amounts appear on Line 6a of the 941.
YTD amounts will appear in Box 3 on each employee W-2.
The total YTD amount for the company will appear in Box 3 of the W-3.
This amount should balance to the sum of all four quarters on Line 6a of the 941.
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4 - Social security tax withheld

This is the total amount of Social Security tax that has been withheld from the employee's paycheck or withheld on the employee's behalf. This amount should not exceed $4,724.40 for 2000. This does not include the employer's share.

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5 - Medicare wages and tips

The wages and tips subject to Medicare tax are the same as those subject to social security tax, except that there is no wage base limit for Medicare tax.

GROSS (Taxable Fringe Benefits and Tips are included in Gross) - MEDICARE EXEMPT WAGES - MEALS - CAFE 125 BENEFITS (may vary depending on the benefit) + GROUP-TERM LIFE + THIRD-PARTY SICKPAY = MEDICARE WAGES AND TIPS.

Note: QTD amounts appear on Line 7 of the 941.
TD amounts will appear in Box 5 on each employee W-2.
The total YTD amount for the company will appear in Box 5 of the W-3.
This amount should balance to the sum of all four quarters on Line 7 of the 941.
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6 - Medicare tax withheld

The total employee Medicare tax (not including employer's share) withheld or paid on behalf of the employee.
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7 - Social security tips

When the total of tips and wages subject to employee social security taxes amounts to $76,200, no additional tips will be shown in this box. The total of box 3 plus box 7 is not to exceed $76,200 (the maximum social security wage base for 2000).
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8 - Allocated tips

Food or beverage establishments will show the amounts of tips allocated to the employee, if any. This amount is not included in boxes 1, 3, 5, or 7.
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9 - Advance EIC payment

Total amount paid to the employee as advance earned income credit (EIC) payments.
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10 - Dependent care benefits

The total amount of dependent care benefits paid or incurred for the employee is shown here, including any amount in excess of the $5,000 exclusion. Boxes 1, 3, and 5 also include any excess over the $5,000 amount.
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11 - Nonqualified plans

The total amount of distributions from a nonqualified plan, or a section 457 plan, to an employee. If there are distributions only from 457(b) plans, they will be shown as a separate figure with a code "G". The same amounts are included in wages (box 1).
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12a-d - See instructions for box 12

The use of this box is optional, except in the case of the lease value of a vehicle provided to an employee. It must be reported here and in box 1 or in a separate statement to the employee. ADP continues to report the total value of all other taxable fringe benefits included in box 1, in box 12 as well. Does not include amounts reported in boxes 10 and/or 13.
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13 - Employee Status

Indicate the employee's status by selecting the appropriate check boxes.

Statutory employee: Check this box if the employee is a statutory employee whose earnings are subject to social security and Medicare taxes but not subject to federal income tax withholding.

Retirement plan: Check this box if the employee is an active participant (for any part of the year) in a qualified retirement plan, including a simplified employee pension (SEP) plan maintained by the employer. Do not check this box if the contributions are made to a non-qualified plan or any section 457 plan.

Third-party sick pay:

Location: Statutory Details page in TotalChoice.


Box 13 - EMPLOYER USE

Amounts reported in this box will be explained by a letter code from the following table:

A Uncollected social security or RRTA tax on tips
B Uncollected Medicare tax on tips
C Group-term life cost (coverage over $50,000)
D Section 401(k) contributions including the amount deferred under a SIMPLE retirement account that is part of a 401(k) arrangement
E Section 403(b) contributions
F Section 408(k)(6) contributions
G Section 457(b) contributions
H Section 501(c)(18)(D) contributions
J Nontaxable sick pay (not included in boxes 1, 3, or 5.
K 20% excise tax on excess golden parachute payments
L Substantiated employee business expense reimbursements (non-taxable)
M Uncollected social security or RRTA tax on cost of group-term life insurance coverage over $50,000 (former employees only)
N Uncollected Medicare tax on cost of group-term life insurance coverage over $50,000 (former employees only)
P Excludable moving expense reimbursements paid directly to an employee Q Military employee basic housing, subsistence and combat zone compensation
R Employer contributions to a medical savings account (MSA)
S Section 408(p) employee salary reduction contributions to a SIMPLE retirement account. However, if the SIMPLE is part of a 401(k) arrangement, the amount is reported using code D.
T Employer-provided adoption benefits for the amount paid or expenses incurred by an employer under an adoption assistance program. Also includes benefits from pre-tax contributions made by an employee to a Section 125 adoption plan account.

EXCEPTIONS:

Copy A Form W-2

Limited to three codes in box 13. If more than three codes need to be reported, separate Form W-2's need to be used with a maximum of three codes each. On all other copies of Form W-2, this limit does not apply, however the AutoPay system does limit the number of codes displayed to three (3) on ALL copies.

14 - Other

This box may be used by the employer for any other information they want to give the employee. Each item displayed must be labeled.
Note: All copies of the W-2 will print the same literals in Box 14.
Additional W-2 forms are generated for employees with more than three Box 14 items?

Exceptions:

Boone County, Kentucky: The name "Boone County" along with the literals "BC" (Board of Education Tax) and "MH" (Mental Health Tax) will print with the associated dollars in Box 14 of all copies of the W-2.

Missouri Individual Medical Accounts (IMA): Missouri requires the literal 'IMA' to be used for Individual Medical Accounts. When reporting the deduction from federal taxable income, the contribution amount should appear in box 14 of the paper W-2.

California SDI Withheld (CA SDI): For California state code employees with non California SUI codes, the literals of CA SDI with zero monies and the PO code of the SDI with monies will both appear in Box 14. The PO code printed will be based on the SUI code.

New Jersey SUI/SDI Withheld: Fund monies are broken out into 2 categories:Unemployment Insurance/Health Care/Work Force Development (UI/HC/WF) and State Disability Insurance (NJDI).

Voluntary Plan Disability Insurance Number (VPDI): If a VPDI plan is replacing the state funded plan, the ID Number must appear on the W-2 in box 14. This is set up on the STID screen. In this case, the two categories on the W-2 would be:

UI/HC/WF - Unemployment Insurance/Health Care/Work Force Development

VPDI - Voluntary Private Disability

Ohio School Districts: The literal "S.D." and the school district four digit numeric number will print, with the associated dollars, in Box 14 of all copies of the W-2.

State Disability Insurance: Employees with a Hawaii, New York, or Rhode Island SUI code will have the literal "XX SDI" (where XX = the state P.O. abbreviation) and the associated dollars printed in Box 14 of the State Filing and Reference copies (copy 2). The federal filing (copy B) and employee reference (copy C) copies will have the literal "SDI", with the associated dollars, printed in Box 14.

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15 - State and Employer's state ID number

The two-digit state postal abbreviation and the state assigned identification number.

Exceptions:

New Jersey: Box 15 of the W-2 displays the State ID Number for all states except New Jersey and New York. For the State of New Jersey, the SUI ID Number is displayed.

New York: Box 15 of the W-2 displays the State ID Number for all states except New Jersey and New York. For the State of New York, the Federal ID Number (FEIN) is displayed.

Multi-Jurisdiction Employee (Employee with multiple states and multiple cities): The federal copy (copy B) will display "TOTAL STATE" in box 15 with total state withholding in box 17. Separate state/local filing and reference copies will be produced for each state/local with the state/local name, wages, and amounts properly displayed.

Multi-Jurisdiction Employee (Employee with one state and multiple cities): The federal copy (copy B) will display the state name/identification in box 15, state wages in box 16, and state withholding in box 17. Separate state/local filing and reference copies will be produced for each state/local with the state/local name, wages, and amounts properly displayed.

Multi-Jurisdiction Employee (Employee with multiple states and one city): The federal copy (copy B) will display "TOTAL STATE" in box 15 with total state withholding in box 17. Separate state/local filing and reference copies will be produced for each state/local with the state/local name, wages, and amounts properly displayed.

SCET: Same rules as above for Multi-Jurisdiction with one difference. Even if there is only one state, the federal copy (copy B) will always display "TOTAL STATE" in box 15 with total state withholding in box 17. Separate state filing and reference copies will be produced for each state with the state name, wages, and amounts properly displayed.

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16 - State wages, tips, etc.

Includes regular wages, tips, sick pay, other compensation amounts, and any other fringe benefits subject to state income tax.

GROSS (Taxable Fringe Benefits and Tips are included in Gross) - STATE EXEMPT WAGES - MEALS - DEFERRED COMPENSATION * - CAFE 125 BENEFITS (may vary depending on the benefit) * + GROUP-TERM LIFE * + THIRD-PARTY SICKPAY * + OTHER COMPENSATION * = STATE WAGES

Note: YTD amounts appear in Box 17 of the W-2.

 

Exceptions: * (these items may vary depending on the state)

New York: The Gross Pay to Net Pay on the Earnings Summary for New York state and local employees may not always balance to the amounts displayed in the state and local wages boxes. New York State, New York City (residents), and Yonkers W-2's use federal wages (box 1) for state wages (box 16) and local wages (box 18). The Earnings Summary will reflect the appropriate boxes.

SCET: The employer reference set (copy D) will not display state wages if the employee is SCET'd within the same state.

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17 - State income tax

The amount of state income tax withheld from the employee's wages for the year.
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18 - Local wages, tips, etc.

Depending on the locality involved, includes regular wages, tips, sick pay, other compensation amounts, and any other fringe benefits subject to that local's income tax.

Exception: For New York City nonresidents, the wages on which any New York City nonresident earnings tax was withheld will not be displayed. This means that for most New York City nonresidents this box will be blank.

As in prior years, because of the special print requirement for Form W-2 Box 20, the amount shown in the blue Earnings Summary box (upper right corner of the ADP form) may not reconcile to zero (or "blank") as reported in Box 20.

Because of the timing of the repeal of this tax, the Wage & Tax Register will display only the local taxable amount through first quarter (March 31, 2000) in the year-to-date amount field.

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19 - Local income tax

The amount of local income tax withheld from the employee's wages for the year.

Exception: For New York City nonresidents, the amount of earnings tax withheld in 2000 will be displayed. This will be the total amount of tax that was withheld from the employee before the order to cease withholding was implemented. The amount will print in this box, regardless of whether or not the employee has already filed for a refund.

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20 - Locality name

Locality name will print based on the 4 digit Tax Service Local Code associated with the employee's Payroll City Code. Refer to the TAXL screen on CCI to find the locality's W-2 name. Tax Service Local Codes and their associated Payroll City Codes are setup on the LOCID screen.

Exceptions:

Multi-Jurisdiction Employee (Employee with multiple states and multiple cities): The federal copy (copy B) will display "TOTAL STATE" in box 15 with total state withholding in box 17. Separate state/local filing and reference copies will be produced for each state/local with the state/local name, wages, and amounts properly displayed.

Multi-Jurisdiction Employee (Employee with one state and multiple cities): The federal copy (copy B) will display the state name/identification in box 15, state wages in box 16, and state withholding in box 17. Separate state/local filing and reference copies will be produced for each state/local with the state/local name, wages, and amounts properly displayed.

Multi-Jurisdiction Employee (Employee with multiple states and one city): The federal copy (copy B) will display "TOTAL STATE" in box 15 with total state withholding in box 17. Separate state/local filing and reference copies will be produced for each state/local with the state/local name, wages, and amounts properly displayed.

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