How to Read Your W-2 Form

Transcription

1 How to Read Your W-2 Form Form W-2, Wage and Tax Statement, is used to report your wages for the year and the taxes withheld from them. CSG is required to send you a W-2 by January 31st of each calendar year. A copy of your W-2 is sent to you, the Social Security Administration, the IRS and any state or local government for which taxes are withheld. In addition, a copy of your W-2 must be retained by Community Services Group (CSG). Some of the items listed on your W-2 are used to complete your tax return and some are for informational purposes only. Box a: Employee's Social Security Number. If the number is incorrect, Please complete a ticket on HR/PR Help desk immediately to receive a corrected W-2. All payments withheld from your wages are credited under the Social Security number shown. A wrong number means that your payments are not being credited to you. Box b: Employer Identification Number. This is CSG s identification number with the IRS (the equivalent of your Social Security number or individual taxpayer identification number). This number must be valid and match the IRS's records if you wish to e-file your tax return. Box c: Employer's Name, Address and Zip Code. This is the address of the main office or Home Office, not necessarily the building where you work. Boxes e and f: Employee's Name and Address. Your full name and current address Box 1: Wages, Tips and Other Compensation. The taxable amount of compensation CSG paid you. This includes any tips, bonuses or commissions as well as wages. The amount shown in this box is entered on the "wages" line of your tax return (Line 7 of Forms 1040 and 1040A, or line 1 of Form 1040EZ. Box 2: Federal Income Tax Withheld. The total amount of federal income tax CSG withheld from your wages the previous year. The amount shown in this box is entered on the "federal tax withheld from Forms W-2 and 1099" line of your tax return (Line 61 of Form 1040, line 38 of Form 1040A or  line 7 of Form 1040EZ).

2 Box 3: Social Security Wages. The amount of earnings CSG paid you (not including tips) that are subject to Social Security tax. This amount may be greater than the amount shown in Box 1 because some income that is subject to Social Security tax is not subject to income tax. The most common example is amounts you contribute to a tax-deferred retirement plan such as a 401(k) or 403(b) plan. Box 4: Social Security Tax Withheld. The amount of Social Security tax withheld on your wages Box 5: Medicare Wages and Tips. The total amount of earnings CSG paid you subject to Medicare tax. Unlike income subject to Social Security tax, there is no limit on the amount of wages that may be subject to Medicare tax. Box 6: Medicare Tax Withheld. The amount of Medicare tax withheld on your wages Box 7: The amount of tips you received that you reported. This amount combined with the amount in Box 3 is used to figure the Social Security and Medicare tax (if any) you owe on tips you didn't report to CSG. Box 8: Allocated Tips. The amount of tips CSG allocated to you. This amount is in addition to the amount you reported shown in Box 7. The allocation is generally based on credit card receipts and IRS formulas. If you have an amount shown in this box, you generally need to complete Form 4137 to pay Social Security and Medicare tax on the amount. The amount in Box 8 generally must be included in taxable wages on your tax return. See IRS Publication 531 for situations in which you may not need to report this amount on your return. Box 9: Advance EIC Payment. Not Applicable (no longer in use) Box 10: Dependent Care Benefits. The amount of your wages used to pay for dependent care expenses under a section 125 plan (cafeteria plan or flexible spending arrangement). This amount is not included in Box 1. You must file Form 2441 to determine whether any part of this amount is taxable. Box 11: Nonqualified Plans. The total amount of payments received from an employer's nonqualified retirement plan. This amount is included in Box 1 and is taxable. Boxes 12a, 12b, 12c, 12d. These boxes are used for various reporting purposes. Following is a partial list of what some of the codes mean: Medical insurance shows in Box 12 this year with a code of DD. DD is the cost of employer sponsored health coverage. A Social Security tax that couldn't be withheld because there wasn't enough tip Income to cover the tax. This amount should be included in the total on line 60, Form B Medicare tax that CSG couldn't withhold because there wasn't enough tip income to cover the tax. This amount should be included in the total on line 60, Form D Pre-tax contributions to a 401(k) plan. This amount isn't included in Box 1 and isn't E Pre-tax contributions to a tax-sheltered annuity plan. This amount isn't included in Box 1 and isn't F Pre-tax contributions to a salary reduction SEP. This amount isn't included in Box 1 and isn't taxable to you.*

3 G Pre-tax contributions to a section 457 retirement plan. This amount isn't included in Box 1 and isn't J Amount of sick pay not taxable because the employee contributed to the plan. L Amount of business expense reimbursement paid based on a per diem or per mile basis. You can't deduct this amount. Any amounts in excess of the federal per diem will be included in Box 1 and is taxable to you. If you're deducting expenses in excess of this amount, complete Form P Amount of moving expense reimbursement paid to the employee. This amount is neither taxable nor deductible. Q Amount of nontaxable military combat pay. You can treat this amount as earned income for purposes of the Earned Income Credit, the Additional Child Tax Credit, and for purposes of making an IRA contribution. S Pre-tax contributions to an employer's SIMPLE plan. This amount isn't included in Box 1 and isn't *If you worked for more than 1 employer, see IRS Publication 525 to determine whether any of this amount is taxable. U- Non-Pre-tax medical and dental insurance deductions AA- is designated Roth 401K contributions DD- Pre-tax deductions for Part-time and full-time medical benefits Box 13: Statutory Employee, Retirement Plan, Third Party Sick Pay. One of the boxes will be checked if it applies to you. Statutory employee If you're a statutory employee, your W-2 should have Social Security and Medicare tax withheld, but no federal or state taxes withheld. Retirement plan If you're considered to be participating in a qualified retirement plan, whether you contribute to it or not, this box will be checked. If this box is checked, your deductible IRA contributions may be limited. Third-party sick pay If you received any payments for sick pay from a third-party provider, this box will be checked. Any amounts paid due to premiums paid by your employer will be taxable to you. Amounts paid from your own contributions won't be taxable. Box 14: Other. This is used to provide you with additional information that may or may not affect your tax return. Items commonly reported in this box include union dues, United Way contributions, Tier I and Tier II Railroad retirement contributions, the lease value of a vehicle provided to an employee, state disability insurance tax withheld, after-tax contributions to 401(k) plans and wages from disposing of stock acquired by exercising incentive stock options, FSA (Flexible Spending Account), LST (Local Services Tax), and PA SUI (Pennsylvania State Unemployment Insurance). Box 14 will show MED and will be employee paid dental or after tax deductions for medical only. Box 15: State. The postal abbreviation indicating the state for which taxes were withheld and the CSG's state identification number

4 Box 16: State Wages, Tips, etc. The amount of your wages subject to state tax. This amount may differ from the amount shown in Box 1. Box 17: State Income Tax. The amount of tax withheld for the state indicated in Box 15. Box 18: Local Wages, Tips, etc. The amount of your wages subject to local income tax. This amount may differ from the amount shown in Box 1 and/or Box 16. Box 19: Local Income Tax. The amount of tax withheld for the locality indicated in Box 20. This amount is entered on the appropriate line of your local tax return. Box 20: Locality Name. The PSD Code used by your local municipality for which taxes were withheld. The PSD Code 6 digit number which designates each of the 69 Tax Collection Districts along with the School District and Municipality s there in. *you may have more than 1 PSD code if you moved during the calendar year. Due to our transition from the old system to the new one those amounts will not be the same. We were still working on importing information as well as auditing our data. Please use the info from your W2 when processing your taxes. Please contact the Help Desk found on the CSG Insider (orange tab left hand side of the screen > E Help Desk > HR/PR Benefit Help Desk) if you have any additional questions or concerns about your W- 2 Form.

5 FREQUENTLY ASKED QUESTIONS 1. My W-2 does not reflect my current salary. How come? Your W-2 does not reflect your fiscal year salary; it reflects taxable, calendar year wages. 2. I either didn t receive or lost my W-2 Form, what do I do? If you are a current employee, and didn t receive your W-2 by January 31st, please submit a ticket through the E- Helpdesk HR/Payroll Benefit helpdesk. 3. My address on the W-2 is incorrect, what should I do? A corrected W-2 is not required for a change in address. If you are a current employee and need to change your address, complete Employee Information Form (2.208) and submit to your EIS. 4. My wages on my W-2 do not match my final check stub of the year. What is the problem? The W-2 reflects taxable earnings while the check stubs reflect total earnings. To convert from total earnings to taxable earnings, you need to subtract the nontaxable deductions, including parking deductions, FSA deductions(medical and dental deductions, flexible spending account deductions, and dependent care deductions) and retirement deductions (403(b), 457). These deductions are itemized in boxes 12, 13, and 14 of the W What is Code DD? Medical Insurance shown in Box 12 this year with a code of DD (Refer back to Box 12) 6. I have Multiple Local Taxes Withheld: The PSD Code used by your local municipality for which taxes were withheld. The PSD Code 6 digit number which designates each of the 69 Tax Collection Districts along with the School District and Municipality s there in. *you may have more than 1 PSD code if you moved during the calendar year. 7. When doing my taxes I was told too much Social Security tax and Medicare tax was taken? You should contact the E-Help Desk > HR/PR Benefit Help desk. This will have no impact upon you filing your federal, state or local income tax returns. CSG is aware of some instances where this may have occurred and has mailed communication and a form requiring a signature and to be mailed back to process a refund. If you believe this overpayment has occurred and you have not received this communication and form, please contact the E-Help Desk > HR/PR Benefit Help desk. Due to our transition from the old system to the new one those amounts will not be the same. We were still working on importing information as well as auditing our data. Please use the info from your W2 when processing your taxes. Please contact the Help Desk found on the CSG Insider (orange tab left hand side of the screen > E Help Desk > HR/PR Benefit Help Desk) if you have any additional questions or concerns about your W- 2 Form.