Federal Instructions for Forms W-2 and W-3, Wage and Tax Statement and Transmittal of Wage and Tax Statements

Instructions for Forms W-2 and W-3, Wage and Tax Statement and Transmittal of Wage and Tax Statements
2023 General Instructions for Forms W-2 and W-3
2023

General Instructions for
Forms W-2 and W-3

Department of the Treasury
Internal Revenue Service

(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
unless otherwise noted.
Contents
Future Developments . . . . . . . . . . . . . . . . . . .
What's New . . . . . . . . . . . . . . . . . . . . . . . . . .
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . .
Need Help? . . . . . . . . . . . . . . . . . . . . . . . . . .
How To Get Forms and Publications . . . . . . . .
Common Errors on Forms W-2 . . . . . . . . . . . .
General Instructions for Forms W-2 and W-3 . .
Special Reporting Situations for Form W-2 . . . .
Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Specific Instructions for Form W-2 . . . . . . . . . .
Specific Instructions for Form W-3 . . . . . . . . . .
General Instructions for Forms W-2c and W-3c .
Special Situations for Forms W-2c and W-3c . .
Specific Instructions for Form W-2c . . . . . . . . .
Specific Instructions for Form W-3c . . . . . . . . .
Form W-2 Reference Guide for Box 12 Codes .
Form W-2 Box 13 Retirement Plan Checkbox
Decision Chart . . . . . . . . . . . . . . . . . . . . .
Nonqualified Deferred Compensation Reporting
Example Chart . . . . . . . . . . . . . . . . . . . . .
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Future Developments

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For the latest information about developments related to
Forms W-2 and W-3 and their instructions, such as
legislation enacted after they were published, go to
IRS.gov/FormW2.

What's New
Forms W-2 (including Forms W-2AS, W-2GU, and
W-2VI) redesigned. Beginning with the tax year 2023
forms (filed in tax year 2024), you may complete and print
Copies 1, B, C, 2 (if applicable), and D (if applicable) of
Forms W-2, W-2AS, W-2GU, and W-2VI on IRS.gov to
provide to the respective recipient. An entry made in any
one of these copies will automatically populate to the
other copies. As before, Copy A cannot be completed
online to print and file with the SSA and is posted on
IRS.gov for informational purposes only. Copy D for
employers and the Note for Employers that was
previously provided on the back of Copy D has been
removed from the Forms W-2AS, W-2GU, and W-2VI to
reduce the number of pages for printing purposes.
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

the threshold for mandatory electronic filing. Currently,
electronic filing is required if 250 returns of one type are
filed. If final regulations are issued and effective for 2023
tax returns required to be filed in 2024, we will post an
article at IRS.gov/FormW2 explaining the change. Until
final regulations are issued, however, the number remains
at 250, as reflected in these instructions.
Disaster tax relief. Disaster tax relief is available for
those affected by recent disasters. For more information
about disaster relief, go to IRS.gov/DisasterTaxRelief.
Penalties increased. Failure to file and failure to furnish
penalties, and penalties for intentional disregard of filing
and payee statement requirements, have increased due
to adjustments for inflation. The higher penalty amounts
apply to returns required to be filed after December 31,
2023. See Penalties for more information.

Reminders
Discrepancies when reconciling Forms W-2 and W-3
with Forms 941, 941-SS, 943, 944, CT-1, and Schedule H (Form 1040) due to coronavirus (COVID-19) related employment tax credits and other tax relief.
You may have a discrepancy when reconciling Forms W-2
and W-3 to Forms 941, 941-SS, 943, 944, CT-1, and
Schedule H (Form 1040) if you utilized any of the
COVID-19 tax relief. See Pub. 15 or Pub. 51, the
instructions for your respective employment tax form, and
the Caution under Reconciling Forms W-2, W-3, 941,
941-SS, 943, 944, CT-1, and Schedule H (Form 1040), for
more information.
Due date for filing with SSA. The due date for filing
2023 Forms W-2, W-2AS, W-2CM, W-2GU, W-2VI, W-3,
and W-3SS with the SSA is January 31, 2024, whether
you file using paper forms or electronically.
Extensions of time to file. Extensions of time to file
Form W-2 with the SSA are not automatic. You may
request one 30-day extension to file Form W-2 by
submitting a complete application on Form 8809,
Application for Extension of Time To File Information
Returns, indicating that at least one of the criteria on the
form and instructions for granting an extension applies,
and signing under penalties of perjury. The IRS will only
grant the extension in extraordinary circumstances or
catastrophe. See Extension of time to file Forms W-2 with
the SSA for more information. This does not affect
extensions of time to furnish Forms W-2 to employees.
See Extension of time to furnish Forms W-2 to employees
for more information.

Cat. No. 25979S

Get it done faster...

Additional Medicare Tax. In addition to withholding
Medicare tax at 1.45%, an employer is required to
withhold a 0.9% Additional Medicare Tax on any Federal
Insurance Contributions Act (FICA) wages or Railroad
Retirement Tax Act (RRTA) compensation it pays to an
employee in excess of $200,000 in a calendar year. An
employer is required to begin withholding Additional
Medicare Tax in the pay period in which it pays wages or
compensation in excess of $200,000 to an employee and
continue to withhold it until the end of the calendar year.
Additional Medicare Tax is imposed only on the
employee. There is no employer share of Additional
Medicare Tax. All wages and compensation that are
subject to Medicare tax are subject to Additional Medicare
Tax withholding if paid in excess of the $200,000
withholding threshold.
For more information on Additional Medicare Tax, go to
IRS.gov/ADMTfaqs.
Unless otherwise noted, references to Medicare tax
include Additional Medicare Tax.

TIP E-file your Forms W-2 and W-2c with the SSA.
See E-filing.

Rejected wage reports from the Social Security Administration (SSA). The SSA will reject Form W-2
electronic and paper wage reports under the following
conditions.
• Medicare wages and tips are less than the sum of
social security wages and social security tips;
• Social security tax is greater than zero; social security
wages and social security tips are equal to zero; and
• Medicare tax is greater than zero; Medicare wages and
tips are equal to zero.
Additionally, Forms W-2 and W-2c electronic and
paper wage reports for household employers will be
rejected under the following conditions.
• The sum of social security wages and social security
tips is less than the minimum yearly earnings subject to
social security and Medicare tax withholding for a
household employee, and
• The Medicare wages and tips are less than the
minimum yearly earnings subject to social security and
Medicare tax withholding for a household employee.
If the above conditions occur in an electronic wage
report, the SSA will notify the submitter by email or postal
mail to correct the report and resubmit it to the SSA. If the
above conditions occur in a paper wage report, the SSA
will notify the employer by email or postal mail to correct
the report and resubmit it to the SSA.
Note. Do not write “corrected” or “amended” on any
resubmitted reports.
Household employers, see Pub. 926, Household
Employer's Tax Guide.

Medicaid waiver payments. Notice 2014-7 provides
that certain Medicaid waiver payments may be excluded
from income for federal income tax purposes. See Notice
2014-7, 2014-4 I.R.B. 445, available at IRS.gov/irb/
2014-4_IRB#NOT-2014-7. Also see IRS.gov/
MedicaidWaiverPayments for questions and answers on
the notice.
Business Services Online (BSO). The SSA has
enhanced its secure BSO website to make it easier to
register and navigate. Use BSO’s online fill-in forms to
create, save, and submit Forms W-2 and W-2c to the SSA
electronically. BSO lets you print copies of these forms to
file with state or local governments, distribute to your
employees, and keep for your records. BSO generates
Form W-3 automatically based on your Forms W-2. You
can also use BSO to upload wage files to the SSA, check
on the status of previously submitted wage reports, and
take advantage of other convenient services for
employers and businesses. Visit the SSA’s Employer W-2
Filing Instructions & Information website at SSA.gov/
employer for more information about using BSO to save
time for your organization. Here you will also find forms
and publications used for wage reporting, information
about verifying employee social security numbers online,
how to reach an SSA employer services representative for
your region, and more.

Social security numbers. Employers may truncate the
employee’s SSN on employee copies of Forms W-2. Do
not truncate the employees’ SSN on Copy A of Forms
W-2, W-2c, W-2AS, W-2GU, and W-2VI. See Taxpayer
identification numbers (TINs), later. Also see Regulations
section 31.6051-1(a)(1)(i)(B) and 31.6051-2(a). To
truncate where allowed, replace the first 5 digits of the
9-digit number with asterisks (*) or Xs (for example, an
SSN xxx-xx-1234 would appear on the employee copies
as ***-**-1234 or XXX-XX-1234). Truncation of SSNs on
employee copies of Form W-2 is voluntary. You are not
required to truncate SSNs on employee copies of Form
W-2. Check with your state, local, or territorial
governments to determine whether you are permitted to
truncate SSNs on copies of Form W-2 submitted to the
government.
An employer’s EIN may not be truncated on any form.
See Regulations section 31.6051-1(a)(1)(i)(A) and
301.6109-4(b)(2)(iv).

Preview BSO by viewing a brief online tutorial. Go

TIP to SSA.gov/employer/bsotut.htm.

Correcting wage reports. You can use BSO to
create, save, print, and submit Forms W-2c, Corrected
Wage and Tax Statement, online for the current year as
well as for prior years. After logging into BSO, navigate to
the Electronic Wage Reporting home page and click on
the “Forms W-2c/W-3c Online” tab. Also see E-filing and
E-filing Forms W-2c and W-3c.

Limit on health flexible spending arrangement (FSA).
For 2023, a cafeteria plan may not allow an employee to
request salary reduction contributions for a health FSA in
excess of $3,050. The salary reduction contribution
limitation of $3,050 does not include any amount carried
over from a previous year. For more information, see
Health flexible spending arrangement (FSA).

Tax relief for victims of terrorist attacks. Disability
payments for injuries incurred as a direct result of a
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
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General Instructions for Forms W-2 and W-3 (2023)

For more information about e-filing Forms W-2 or W-2c
and a link to the BSO website, visit the SSA’s Employer
W-2 Filing Instructions & Information website at SSA.gov/
employer.

includable in income, no federal income tax should be
withheld from these payments.
Distributions from governmental section 457(b)
plans of state and local agencies. Generally, report
distributions from section 457(b) plans of state and local
agencies on Form 1099-R, Distributions From Pensions,
Annuities, Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc. See Notice 2003-20 on
page 894 of Internal Revenue Bulletin 2003-19 at
IRS.gov/pub/irs-irbs/irb03-19.pdf.

In a few situations, reporting instructions vary
depending on the filing method you choose. For example,
you can include every type of box 12 amount in one
employee wage record if you upload an electronic file. If
you file on paper or create Forms W-2 online, you can
include only four box 12 amounts per Form W-2. See the
TIP for Box 12—Codes under Specific Instructions for
Form W-2.
Waiver from e-filing. If you are required to e-file, you
can request a waiver from this requirement by filing Form
8508, Request for Waiver From Filing Information Returns
Electronically. Submit Form 8508 to the IRS at least 45
days before the due date of Form W-2, or 45 days before
you file your first Form W-2c. See Form 8508 for
information about filing this form.

Earned income credit (EIC) notice (not applicable to
Forms W-2AS, W-2CM, W-2GU, and W-2VI). You must
notify employees who have no income tax withheld that
they may be able to claim an income tax refund because
of the EIC. You can do this by using the official Internal
Revenue Service (IRS) Form W-2 with the EIC notice on
the back of Copy B or a substitute Form W-2 with the
same statement. You must give your employee Notice
797, Possible Federal Tax Refund Due to the Earned
Income Credit (EIC), or your own statement that contains
the same wording if (a) you use a substitute Form W-2
that does not contain the EIC notice, (b) you are not
required to furnish Form W-2, or (c) you do not furnish a
timely Form W-2 to your employee. For more information,
see section 10 in Pub. 15 (Circular E), Employer's Tax
Guide.

Form 944. Use the “944” checkbox in box b of Form W-3
or Form W-3SS if you filed Form 944, Employer's
ANNUAL Federal Tax Return. Also use the “944”
checkbox if you filed Formulario 944(SP), the
Spanish-language version of Form 944.
Forms W-2 for U.S. territories. In these instructions,
reference to Forms W-2 and W-3 includes Forms W-2AS,
W-2CM, W-2GU, W-2VI, and W-3SS, unless otherwise
noted. These instructions are not applicable to wage and
tax statements for Puerto Rico. Form W-2AS is used to
report American Samoa wages paid by American Samoa
employers, Form W-2CM is used to report the
Commonwealth of the Northern Mariana Islands (CNMI)
wages paid by CNMI employers, Form W-2GU is used to
report Guam wages paid by Guam employers, and Form
W-2VI is used to report U.S. Virgin Islands (USVI) wages
paid by USVI employers. Do not use these forms to report
wages subject to U.S. income tax withholding. Instead,
use Form W-2 to show U.S. income tax withheld. For
employment-related information for employers with
territory employees, see Pub. 80, Federal Tax Guide for
Employers in the U.S. Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern Mariana
Islands.

Electronic statements for employees. Furnishing
Copies B, C, and 2 of Forms W-2 to your employees
electronically may save you time and effort. See
Furnishing Form W-2 to employees electronically in Pub.
15-A, Employer’s Supplemental Tax Guide, for additional
information.
E-filing. The SSA encourages all employers to e-file.
E-filing can save you time and effort and helps ensure
accuracy. You must e-file if you are required to file 250 or
more Forms W-2 or W-2c. If you are required to e-file but
fail to do so, you may incur a penalty.
The SSA’s BSO website makes e-filing easy by
providing two ways to submit your Forms W-2 or W-2c
Copy A and Forms W-3 or W-3c information.
• If you need to file 50 or fewer Forms W-2 or 25 or fewer
Forms W-2c at a time, you can use BSO to create them
online. BSO guides you through the process of creating
Forms W-2 or W-2c, saving and printing them, and
submitting them to the SSA when you are ready. You do
not have to wait until you have submitted Forms W-2 or
W-2c to the SSA before printing copies for your
employees. BSO generates Form W-3 or W-3c
automatically based on your Forms W-2 or W-2c.
• If you need to file more than 50 Forms W-2 or more
than 25 Forms W-2c, BSO’s “file upload” feature might be
the best e-filing method for your business or organization.
To obtain file format specifications, visit the SSA’s website
at SSA.gov/employer/EFW2&EFW2C.htm, and select the
appropriate document. This information is also available
by calling the SSA’s Employer Reporting Service Center
at 800-772-6270 (toll free).

!

Military Spouses Residency Relief Act (MSRRA). You
may be required to report wages and taxes on a form
different from the form you generally use if an employee
claims residence or domicile under MSRRA in a different
jurisdiction in one of the 50 states, the District of
Columbia, American Samoa, the Commonwealth of the
Northern Mariana Islands, Guam, Puerto Rico, or the U.S.
Virgin Islands.
Under MSRRA, the spouse of an active duty
servicemember (civilian spouse) may keep their prior
residence or domicile for tax purposes (tax residence)
when accompanying the servicemember spouse, who is
relocating under military orders, to a new military duty
station in one of the 50 states, the District of Columbia, or
a U.S. territory. Before relocating, both spouses must
have had the same tax residence.
For example, if a civilian spouse is working in Guam but
properly claims tax residence in one of the 50 states

If you e-file, do not file the same returns using
paper forms.

CAUTION

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

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Pub. 1223 prohibits advertising on Form W-2c. You
must not include advertising on any copy of Form W-2c,
including coupons providing discounts on tax preparation
services attached to the employee copies. See Pub. 1223
for further information.

under MSRRA, their income from services would not be
taxable income for Guam tax purposes. Federal income
taxes should be withheld and remitted to the IRS. State
and local income taxes may need to be withheld and
remitted to state and local tax authorities. You should
consult with state, local, or U.S. territory tax authorities
regarding your withholding obligations under MSRRA.
However, for any taxable year of the marriage, the
civilian spouse may elect to use the same residence for
purposes of taxation as the servicemember regardless of
the date on which the marriage of the spouse and the
servicemember occurred.
In the previous example, the spouse would be allowed
to elect to use the same residence as the servicemember.

Need Help?
Help with e-filing. If you have questions about how to
register or use BSO, call 800-772-6270 (toll free) to speak
with an employer reporting technician at the SSA. The
hours of operation are Monday through Friday from 7:00
a.m. to 7:00 p.m. Eastern time. If you experience
problems using any of the services within BSO, call
888-772-2970 (toll free) to speak with a systems operator
in technical support at the SSA. To speak with the SSA's
Employer Services Liaison Officer (ESLO) for the U.S.
Virgin Islands, call 212-264-4402 (not a toll-free number).
For Guam, the Commonwealth of the Northern Mariana
Islands, or American Samoa, call 510-970-8247 (not a
toll-free number). For all other employers, contact the
ESLO that services your region. For a complete telephone
listing, visit the SSA’s Employer W-2 Filing Instructions &
Information website at SSA.gov/employer/
wage_reporting_specialists.htm.

Nonqualified deferred compensation plans. You are
not required to complete box 12 with code Y (Deferrals
under a section 409A nonqualified deferred compensation
plan). Section 409A provides that all amounts deferred
under a nonqualified deferred compensation (NQDC) plan
for all tax years are includible in gross income unless
certain requirements are satisfied. See Nonqualified
deferred compensation plans under Special Reporting
Situations for Form W-2 and the Nonqualified Deferred
Compensation Reporting Example Chart.

Information reporting customer service site. The IRS
operates a centralized customer service site to answer
questions about reporting on Forms W-2, W-3, 1099, and
other information returns. If you have questions about
reporting on these forms, call 866-455-7438 (toll free).

Reporting the cost of group health insurance coverage. You must report the cost of employer-sponsored
health coverage in box 12 using code DD. However,
transitional relief applies to certain employers and certain
types of plans. For more information, see Box 12—Codes
for Code DD—Cost of employer-sponsored health
coverage.

TTY/TDD equipment. Telephone help is available using
TTY/TDD equipment for persons who are deaf, hard of
hearing, or have a speech disability. If you have questions
about reporting on information returns (Forms 1096, 1097,
1098, 1099, 3921, 3922, 5498, W-2, W-2G, and W-3), call
304-579-4827.

Severance payments. Severance payments are wages
subject to social security and Medicare taxes. As noted in
section 15 of Pub. 15 (Circular E), severance payments
are also subject to income tax withholding and FUTA tax.

Employment tax information. Detailed employment tax
information is given in:
• Pub. 15 (Circular E), Employer's Tax Guide;
• Pub. 15-A, Employer's Supplemental Tax Guide;
• Pub. 15-B, Employer's Tax Guide to Fringe Benefits;
• Pub. 15-T, Federal Income Tax Withholding Methods;
• Pub. 51 (Circular A), Agricultural Employer's Tax Guide;
and
• Pub. 80 (Circular SS), Federal Tax Guide for Employers
in the U.S. Virgin Islands, Guam, American Samoa, and
the Commonwealth of the Northern Mariana Islands.
You can also call the IRS with your employment tax
questions at 800-829-4933 or go to IRS.gov/
EmploymentTaxes.

Substitute forms. You may use an acceptable substitute
form instead of an official IRS form.
Form W-2. If you are not using the official IRS form to
furnish Form W-2 to employees or to file with the SSA,
you may use an acceptable substitute form that complies
with the rules in Pub. 1141, General Rules and
Specifications for Substitute Forms W-2 and W-3. Pub.
1141 is a revenue procedure that explains the
requirements for format and content of substitute Forms
W-2 and W-3. Your substitute forms must comply with the
requirements in Pub. 1141.
Pub. 1141 prohibits advertising on Form W-2. You must
not include advertising on any copy of Form W-2,
including coupons providing discounts on tax preparation
services attached to the employee copies. See Pub. 1141
for further information.
Form W-2c. If you are not using the official IRS form to
furnish Form W-2c to employees or to file with the SSA,
you may use an acceptable substitute form that complies
with the rules in Pub. 1223, General Rules and
Specifications for Substitute Forms W-2c and W-3c. Pub.
1223 is a revenue procedure that explains the
requirements for format and content of substitute Forms
W-2c and W-3c. Your substitute forms must comply with
the requirements in Pub. 1223.

How To Get Forms and Publications
Internet. You can access IRS.gov 24 hours a day, 7 days
a week to:
• Download, view, and order tax forms, instructions, and
publications.
• Access commercial tax preparation and e-file services.
• Research your tax questions online.
• See answers to frequently asked tax questions.
• Search publications online by topic or keyword.
• View Internal Revenue Bulletins published in the last
few years.
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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
Form W-2. This may occur if you were not required to
withhold any income tax, social security tax, or Medicare
tax and you paid the employee less than $600, such as for
certain election workers and certain foreign agricultural
workers. See Election workers and Foreign agricultural
workers, later.
Unless otherwise noted, references to Medicare tax
include Additional Medicare Tax.
If you are required to e-file Forms W-2 or want to take
advantage of the benefits of e-filing, see E-filing.

You can order forms, instructions, and publications at
IRS.gov/OrderForms. For any other tax information, go to
IRS.gov/Help/Tax-Law-Questions.
Do not print Copy A of Forms W-2, W-3, W-2c, or
W-3c from IRS.gov and then file them with the
CAUTION SSA. The SSA accepts only e-filed reports and
the official red-ink versions (or approved substitute
versions) of these forms. For more information about
acceptable substitute versions, see Substitute forms. For
information about e-filing, see E-filing

!

Who must file Form W-3. Anyone required to file Form
W-2 must file Form W-3 to transmit Copy A of Forms W-2.
Make a copy of Form W-3 and a copy of each Form W-2
Copy A (For SSA) to keep for your records for at least 4
years. Be sure to use Form W-3 for the correct year. If you
are filing Forms W-2 electronically, also see E-filing.
Household employers. Even employers with only one
household employee must file Form W-3 to transmit Copy
A of Form W-2. On Form W-3, check the “Hshld. emp.”
checkbox in box b. For more information, see Schedule H
(Form 1040), Household Employment Taxes, and its
separate instructions. You must have an employer
identification number (EIN). See Box b—Employer
identification number (EIN).

Common Errors on Forms W-2

Forms W-2 provide information to your employees, the
SSA, the IRS, and state and local governments. Avoid
making the following errors, which cause processing
delays.

Do not:
• Download Copy A of Forms W-2, W-2AS, W-2GU,
W-2VI, and W-3SS; or Form W-3 from IRS.gov and file
with the SSA.
• Omit the decimal point and cents from entries.
• Make entries using ink that is too light. Use only black
ink.
• Make entries that are too small or too large. Use
12-point Courier font, if possible.
• Add dollar signs to the money-amount boxes. They
have been removed from Copy A and are not required.
• Inappropriately check the “Retirement plan” checkbox
in box 13. See Retirement plan.
• Misformat the employee's name in box e. Enter the
employee's first name and middle initial in the first box,
their surname in the second box, and their suffix (such as
“Jr.”) in the third box (optional).
• Enter the incorrect employer identification number (EIN)
or the employee’s SSN for the EIN.
• Cut, fold, or staple Copy A paper forms mailed to SSA.
• Mail any other copy other than Copy A of Form W-2 to
the SSA.

Who may sign Form W-3. A transmitter or sender
(including a service bureau, reporting agent, paying agent,
or disbursing agent) may sign Form W-3 (or use its PIN to
e-file) for the employer or payer only if the sender satisfies
both of the following.
• It is authorized to sign by an agency agreement
(whether oral, written, or implied) that is valid under state
law; and
• It writes “For (name of payer)” next to the signature
(paper Form W-3 only).
Use of a reporting agent or other third-party
payroll service provider does not relieve an
CAUTION employer of the responsibility to ensure that
Forms W-2 are furnished to employees and that Forms
W-2 and W-3 are filed with the SSA, correctly and on time.
See Penalties for more information.

!

General Instructions for Forms
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,
Employer's QUARTERLY Federal Tax Return; Form 943,
Employer's Annual Federal Tax Return for Agricultural
Employees; Form 944, Employer’s ANNUAL Federal Tax
Return; Form CT-1, Employer's Annual Railroad
Retirement Tax Return; or Schedule H (Form 1040) filed
by or for the payer.

Who must file Form W-2. You must file Form(s) W-2 if
you have one or more employees to whom you made
payments (including noncash payments) for the
employees’ services in your trade or business during
2023.
Complete and file Form W-2 for each employee for
whom any of the following applies (even if the employee is
related to you).
• You withheld any income, social security, or Medicare
tax from wages regardless of the amount of wages; or
• You would have had to withhold income tax if the
employee had claimed no more than one withholding
allowance (for 2019 or earlier Forms W-4) or had not
claimed exemption from withholding on Form W-4; or
• You paid $600 or more in wages even if you did not
withhold any income, social security, or Medicare tax.

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

When to file. Mail or electronically file Copy A of Form(s)
W-2 and Form W-3 with the SSA by January 31, 2024.
You may owe a penalty for each Form W-2 that you file
late. See Penalties. If you terminate your business, see
Terminating a business.
Extension of time to file Forms W-2 with the SSA.
You may request only one extension of time to file Form
W-2 with the SSA by submitting a complete application on
Form 8809, Application for Extension of Time To File
Information Returns. When completing the Form 8809,
indicate that at least one of the criteria on the form and
-5-

Virgin Islands Bureau of Internal Revenue
6115 Estate Smith Bay
Suite 225
St. Thomas, VI 00802

instructions for granting an extension applies. You must
sign the application under penalties of perjury. Send the
application to the address shown on Form 8809. You must
request the extension before the due date of Forms W-2.
If the IRS grants your request for extension, you will have
an additional 30 days to file. The IRS will grant extensions
to file Forms W-2 only in limited cases for extraordinary
circumstances or catastrophe, such as a natural disaster
or fire destroying the books and records needed for filing
the forms. No additional extension of time to file will be
allowed. See Form 8809 for details.

For additional information about Form W-2VI, see
BIR.VI.gov.
Commonwealth of the Northern Mariana Islands.
File Form OS-3710 and Copy 1 of Forms W-2CM at the
following address.
Division of Revenue and Taxation
Commonwealth of the Northern Mariana Islands
P.O. Box 5234 CHRB
Saipan, MP 96950

Even if you request and are granted an extension
of time to file Forms W-2, you must still furnish
CAUTION Forms W-2 to your employees by January 31,
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
Finance.gov.mp/forms.php.

Where to file paper Forms W-2 and W-3. File Copy A
of Form(s) W-2 with Form W-3 at the following address.

Shipping and mailing. If you file more than one type of
employment tax form, group Forms W-2 of the same type
with a separate Form W-3 for each type, and send them in
separate groups. See the specific instructions for Box
b—Kind of Payer and Box b—Kind of Employer in Specific
Instructions for Form W-3.
Prepare and file Forms W-2 either alphabetically by
employees' last names or numerically by employees'
social security numbers. Do not staple or tape Form W-3
to the related Forms W-2 or Forms W-2 to each other.
These forms are machine read. Staple holes or tears
interfere with machine reading. Also do not fold Forms
W-2 and W-3. Send the forms to the SSA in a flat mailing.

Social Security Administration
Direct Operations Center
Wilkes-Barre, PA 18769-0001
If you use “Certified Mail” to file, change the ZIP

TIP code to “18769-0002.” If you use an IRS-approved

private delivery service, add “Attn: W-2 Process,
1150 E. Mountain Dr.” to the address and change the ZIP
code to “18702-7997.” Go to IRS.gov/PDS for a list of
IRS-approved private delivery services.
Do not send cash, checks, money orders, or
other forms of payment with the Forms W-2
CAUTION and W-3 that you submit to the SSA.
Employment tax forms (for example, Form 941 or Form
943), remittances, and Forms 1099 must be sent to the
IRS.

!

Furnishing Copies B, C, and 2 to employees.
Generally, you must furnish Copies B, C, and 2 of Form
W-2 to your employees by January 31, 2024. You will
meet the “furnish” requirement if the form is properly
addressed and mailed on or before the due date.
If employment ends before December 31, 2023, you
may furnish copies to the employee at any time after
employment ends, but no later than January 31, 2024. If
an employee asks for Form W-2, give them the completed
copies within 30 days of the request or within 30 days of
the final wage payment, whichever is later. However, if
you terminate your business, see Terminating a business.
You may furnish Forms W-2 to employees on IRS
official forms or on acceptable substitute forms. See
Substitute forms. Be sure the Forms W-2 you provide to
employees are clear and legible and comply with the
requirements in Pub. 1141.
Forms W-2 that include logos, slogans, and
advertisements (including advertisements for tax
preparation software) may be considered as suspicious or
altered Forms W-2 (also known as “questionable Forms
W-2”). An employee may not recognize the importance of
the employee copy for tax reporting purposes due to the
use of logos, slogans, and advertisements. Therefore, the
IRS has determined that logos, slogans, and advertising
will not be allowed on Forms W-3, Copy A of Forms W-2,
or any employee copies reporting wages paid. Limited
exceptions on this prohibition exist with respect to
employee copies. See Pub. 1141 for more information.

Copy 1. Send Copy 1 of Form W-2, if required, to your
state, city, or local tax department. For more information
concerning Copy 1 (including how to complete boxes 15
through 20), contact your state, city, or local tax
department.
American Samoa. File Copy 1 of Form W-3SS and
Forms W-2AS at the following address.
American Samoa Tax Office
Executive Office Building
First Floor
Pago Pago, AS 96799
Guam. File Copy 1 of Form W-3SS and Forms W-2GU
at the following address.
Guam Department of Revenue and Taxation
P.O. Box 23607
Barrigada, GU 96921
For additional information about Form W-2GU, see
GuamTax.com.
U.S. Virgin Islands. File Copy 1 of Form W-3SS and
Forms W-2VI at the following address.
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General Instructions for Forms W-2 and W-3 (2023)

SSN for each employee. You may truncate the
employee’s SSN on employee copies of Forms W-2. Do
not truncate an employee’s SSN on Copy A of Forms
W-2. Go to Social security numbers, earlier, for more
information. Also see Regulations section 31.6051-1(a)(1)
(i)(B) and 31.6051-2(a). For information about verifying
SSNs, see section 4 of Pub. 15 (Circular E) or visit the
SSA's Employer W-2 Filing Instructions & Information
website at SSA.gov/employer.

Extension of time to furnish Forms W-2 to
employees. You may request an extension of time to
furnish Forms W-2 to employees by faxing a letter to:
Internal Revenue Service Technical Services
Operation
Attn: Extension of Time Coordinator
Fax: 877-477-0572 (International Fax:
304-579-4105)

Form W-2 e-filed with the SSA must contain the
employer’s complete EIN and the complete SSN
CAUTION of the employee. Do not truncate EINs or SSNs on
Copy A.

Fax your letter on or before the due date for furnishing
Forms W-2 to employees. It must include:
• Your name and address,
• Your EIN,
• A statement that you are requesting an extension to
furnish “Forms W-2” to employees,
• The reason for delay, and
• Your signature or that of your authorized agent.
See the 2023 General Instructions for Certain
Information Returns.

!

Special Reporting Situations for Form
W-2
Adoption benefits. Amounts paid or expenses incurred
by an employer for qualified adoption expenses under an
adoption assistance program are not subject to federal
income tax withholding and are not reportable in box 1.
However, these amounts (including adoption benefits paid
from a section 125 (cafeteria) plan, but not including
adoption benefits forfeited from a cafeteria plan) are
subject to social security, Medicare, and railroad
retirement taxes and must be reported in boxes 3 and 5.
(Use box 14 if railroad retirement taxes apply.) Also, the
total amount, including any amount in excess of the
$15,950 exclusion, must be reported in box 12 with code
T. For more information on reporting adoption benefits in
box 12, see Code T—Adoption benefits, later.
For more information on adoption benefits, see Notice
97-9, 1997-1 C.B. 365, which is on page 35 of Internal
Revenue Bulletin 1997-2 at IRS.gov/pub/irs-irbs/
irb97-02.pdf. Advise your employees to see the
Instructions for Form 8839, Qualified Adoption Expenses.

Requests for an extension of time to furnish
Forms W-2 to employees are not automatically
CAUTION granted. If approved, an extension will generally
be granted for no more than 15 days from the due date,
unless the need for up to a total of 30 days is clearly
shown.

!

Undeliverable Forms W-2. Keep for 4 years any
employee copies of Forms W-2 that you tried to but could
not deliver. However, if the undelivered Form W-2 can be
produced electronically through April 15th of the fourth
year after the year at issue, you do not need to keep
undeliverable employee copies. Do not send
undeliverable employee copies of Forms W-2 to the
Social Security Administration (SSA).
Taxpayer identification numbers (TINs). Employers
use an employer identification number (EIN)
(XX-XXXXXXX). Employees use a social security number
(SSN) (XXX-XX-XXXX). When you list a number, separate
the 9 digits properly to show the kind of number.
Do not accept an IRS individual taxpayer identification
number (ITIN) in place of an SSN for employee
identification or for Form W-2 reporting. An ITIN is
available only to resident and nonresident aliens who are
not eligible for U.S. employment and need identification
for other tax purposes. You can identify an ITIN because it
is a 9-digit number formatted like an SSN beginning with
the number “9” and with a number in one of the following
ranges in the fourth and fifth digits: 50–65, 70–88, 90–92,
and 94–99 (for example, 9NN-70-NNNN). Do not auto
populate an ITIN into box a, Employee's social security
number, on Form W-2. See section 4 of Pub. 15 (Circular
E).

!

CAUTION

Agent reporting. An agent who has an approved Form
2678, Employer/Payer Appointment of Agent, should
enter the following in box c of Form W-2.
(Name of agent)
Agent for (name of employer)
Address of agent
Each Form W-2 should reflect the EIN of the agent in
box b. An agent files one Form W-3 for all of the Forms
W-2 and enters its own information in boxes e, f, and g of
Form W-3 as it appears on the agent's related
employment tax returns (for example, Form 941). Enter
the client-employer's EIN in box h of Form W-3 if the
Forms W-2 relate to only one employer (other than the
agent); if not, leave box h blank.
If the agent (a) is acting as an agent for two or more
employers or is an employer and is acting as an agent for
another employer, and (b) pays social security wages to
an individual on behalf of more than one employer, the
agent should file separate Forms W-2 for the affected
employee reflecting the wages paid by each employer.
See Rev. Proc. 2013-39, 2013-52 I.R.B. 830, available
at IRS.gov/irb/2013-52_IRB#RP-2013-39 and the Form
2678 instructions for procedures to be followed in
applying to be an agent.

An individual with an ITIN who later becomes
eligible to work in the United States must obtain
an SSN from the Social Security Administration.

The IRS uses SSNs to check the payments that you
report against the amounts shown on employees' tax
returns. The SSA uses SSNs to record employees'
earnings for future social security and Medicare benefits.
When you prepare Form W-2, be sure to show the correct
General Instructions for Forms W-2 and W-3 (2023)

-7-

withhold social security and Medicare taxes on the
payment and report the payment on the employee's Form
W-2 only as social security and Medicare wages to ensure
proper social security and Medicare credit is received. On
the employee's Form W-2, show the payment as social
security wages (box 3) and Medicare wages and tips
(box 5) and the social security and Medicare taxes
withheld in boxes 4 and 6. Do not show the payment in
box 1.
If you made the payment after the year of death, do not
report it on Form W-2, and do not withhold social security
and Medicare taxes.
Whether the payment is made in the year of death or
after the year of death, you must also report it in box 3 of
Form 1099-MISC, Miscellaneous Information, for the
payment to the estate or beneficiary. Use the name and
taxpayer identification number (TIN) of the payment
recipient on Form 1099-MISC. However, if the payment is
a reissuance of wages that were constructively received
by the deceased individual while they were still alive, do
not report it on Form 1099-MISC.

Generally, an agent is not responsible for

TIP refunding excess social security or railroad

retirement (RRTA) tax withheld from employees. If
an employee worked for more than one employer during
2023 and had more than $9,932.40 in social security
and/or Tier 1 RRTA tax withheld, they should claim the
excess on the appropriate line of Form 1040, 1040-SR, or
1040-NR. If an employee had more than $5,821.20 in Tier
2 RRTA tax withheld from more than one employer, the
employee should claim a refund on Form 843, Claim for
Refund and Request for Abatement.
Archer MSA. An employer's contribution to an
employee's Archer MSA is not subject to federal income
tax withholding or social security, Medicare, or railroad
retirement taxes if it is reasonable to believe at the time of
the payment that the contribution will be excludable from
the employee's income. However, if it is not reasonable to
believe at the time of payment that the contribution will be
excludable from the employee's income, employer
contributions are subject to income tax withholding and
social security and Medicare taxes (or railroad retirement
taxes, if applicable) and must be reported in boxes 1, 3,
and 5. (Use box 14 if railroad retirement taxes apply.)
You must report all employer contributions to an Archer
MSA in box 12 of Form W-2 with code R. Employer
contributions to an Archer MSA that are not excludable
from the income of the employee must also be reported in
boxes 1, 3, and 5 (box 14 if railroad retirement taxes
apply).
An employee's contributions to an Archer MSA are
includible in income as wages and are subject to federal
income tax withholding and social security and Medicare
taxes (or railroad retirement taxes, if applicable).
Employee contributions are deductible, within limits, on
the employee's Form 1040 or 1040-SR.
For more information, see Pub. 969, Health Savings
Accounts and Other Tax-Favored Health Plans, and
Notice 96-53, which is found on page 5 of Internal
Revenue Bulletin 1996-51 at IRS.gov/pub/irs-irbs/
irb96-51.pdf.

Example. Before Employee A's death on June 15,
2023, A was employed by Employer X and received
$10,000 in wages on which federal income tax of $1,500
was withheld. When A died, X owed A $2,000 in wages
and $1,000 in accrued vacation pay. The total of $3,000
(less the social security and Medicare taxes withheld) was
paid to A's estate on July 20, 2023. Because X made the
payment during the year of death, X must withhold social
security and Medicare taxes on the $3,000 payment and
must complete Form W-2 as follows.
• Box a— Employee A's SSN
• Box e— Employee A's name
• Box f— Employee A's address
• Box 1— 10000.00 (does not include the $3,000
accrued wages and vacation pay)
• Box 2— 1500.00
• Box 3— 13000.00 (includes the $3,000 accrued wages
and vacation pay)
• Box 4— 806.00 (6.2% of the amount in box 3)
• Box 5— 13000.00 (includes the $3,000 accrued wages
and vacation pay)
• Box 6— 188.50 (1.45% of the amount in box 5)

Clergy and religious workers. For certain members of
the clergy and religious workers who are not subject to
social security and Medicare taxes as employees, boxes
3 and 5 of Form W-2 should be left blank. You may
include a minister's parsonage and/or utilities allowance in
box 14. For information on the rules that apply to ministers
and certain other religious workers, see Pub. 517, Social
Security and Other Information for Members of the Clergy
and Religious Workers and section 4 in Pub. 15-A.

!

Employer X must also complete Form 1099-MISC
as follows.

CAUTION

• Boxes for recipient’s name, address, and TIN—the
estate's or beneficiary’s name, address, and TIN.
• Box 3: 3000.00 (Even though amounts were withheld
for social security and Medicare taxes, the gross amount
is reported here.)

Deceased employee's wages. If an employee dies
during the year, you must report the accrued wages,
vacation pay, and other compensation paid after the date
of death. Also report wages that were available to the
employee while they were alive, regardless of whether
they were actually in the possession of the employee, as
well as any other regular wage payment, even if you may
have to reissue the payment in the name of the estate or
beneficiary.
If you made the payment after the employee's death
but in the same year the employee died, you must

If Employer X made the payment after the year of
death, the $3,000 would not be subject to social security
and Medicare taxes and would not be shown on Form
W-2. However, the employer would still file Form
1099-MISC.
Designated Roth contributions. Under section 402A, a
participant in a section 401(k) plan, under a 403(b) salary
reduction agreement, or in a governmental 457(b) plan
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)

applicable). (Use box 14 if railroad retirement taxes
apply.)
For more information on accountable plans,
nonaccountable plans, amounts treated as substantiated
under a per diem or mileage allowance, the standard
mileage rate, the per diem substantiation method, and the
high-low substantiation method, see Pub. 463, Travel,
Gift, and Car Expenses; and section 5 of Pub. 15 (Circular
E).

program in lieu of elective deferrals. Designated Roth
contributions are subject to federal income tax withholding
and social security and Medicare taxes (and railroad
retirement taxes, if applicable) and must be reported in
boxes 1, 3, and 5. (Use box 14 if railroad retirement taxes
apply.)
Section 402A requires separate reporting of the yearly
designated Roth contributions. Designated Roth
contributions to 401(k) plans will be reported using code
AA in box 12; designated Roth contributions under 403(b)
salary reduction agreements will be reported using code
BB in box 12; and designated Roth contributions under a
governmental section 457(b) plan will be reported using
code EE in box 12. For reporting instructions, see the
box 12 instructions for Code AA—Designated Roth
contributions under a section 401(k) plan, Code
BB—Designated Roth contributions under a section
403(b) plan, and Code EE—Designated Roth
contributions under a governmental section 457(b) plan.

Employee's social security and Medicare taxes (or
railroad retirement taxes, if applicable) paid by employer. If you paid your employee's share of social
security and Medicare taxes rather than deducting them
from the employee's wages, you must include these
payments as wages subject to federal (or American
Samoa, CNMI, Guam, or U.S. Virgin Islands) income tax
withholding and social security, Medicare, and federal
unemployment (FUTA) taxes. If you paid your employee's
share of railroad retirement taxes, you must include these
amounts as compensation subject to railroad retirement
taxes. The amount to include as wages and/or
compensation is determined by using the formula
contained in the discussion of Employee's Portion of
Taxes Paid by Employer in section 7 of Pub. 15-A and in
Rev. Proc. 83-43, 1983-24 I.R.B. 60.

Educational assistance programs. Employer-provided
educational assistance up to a maximum of $5,250 is
excludable from an employee's wages only if assistance
is provided under an educational assistance program
under section 127. See Pub. 970, Tax Benefits for
Education, and section 2 of Pub. 15-B for more
information. Also see Box 1—Wages, tips, other
compensation.

This does not apply to household and agricultural
employers. If you pay a household or agricultural
CAUTION employee's social security and Medicare taxes,
you must include these payments in the employee's
wages for income tax withholding purposes. However, the
wage increase due to the tax payments is not subject to
social security, Medicare, or FUTA taxes. For information
on completing Forms W-2 and W-3 in this situation, see
the Instructions for Schedule H (Form 1040) and section 4
of Pub. 51 (Circular A), Agricultural Employer’s Tax Guide.

!

Election workers. Report on Form W-2 payments of
$600 or more to election workers for services performed
in state, county, and municipal elections. File Form W-2
for payments of less than $600 paid to election workers if
social security and Medicare taxes were withheld under a
section 218 (Social Security Act) agreement. Do not
report election worker payments on Form 1099-MISC.
If the election worker is employed in another capacity
with the same government entity, see Rev. Rul. 2000-6,
which is on page 512 of Internal Revenue Bulletin 2000-6
at IRS.gov/pub/irs-irbs/irb00-06.pdf.

Federal employers in the CNMI. The U.S. Treasury
Department and the CNMI Division of Revenue and
Taxation entered into an agreement under 5 U.S.C.
section 5517 (“5517 agreement”) in December 2006.
Under this agreement, all federal employers (including the
Department of Defense) are required to withhold CNMI
income taxes, rather than federal income taxes, and
deposit the CNMI taxes with the CNMI Treasury for
employees who are subject to CNMI taxes and whose
regular place of federal employment is in the CNMI.
Federal employers are also required to file quarterly and
annual reports with the CNMI Division of Revenue and
Taxation. For questions, contact the CNMI Division of
Revenue and Taxation.
Federal employers may use Form W-2 (rather than
Forms W-2CM or OS-3710) to report income taxes
withheld and paid to CNMI, as well as to report social
security and Medicare taxes. Use the state boxes 15, 16,
and 17 for CNMI income tax reporting. See the
instructions for boxes 15, 16, and 17 under Boxes 15
through 20—State and local income tax information, later.
This rule applies only to income tax reporting. Federal
employers should withhold and report social security and
Medicare taxes for these employees in the same way as
for other federal employees. For more information, go to

Employee business expense reimbursements.
Reimbursements to employees for business expenses
must be reported as follows.
• Generally, payments made under an accountable plan
are excluded from the employee's gross income and are
not reported on Form W-2. However, if you pay a per diem
or mileage allowance and the amount paid for
substantiated miles or days traveled exceeds the amount
treated as substantiated under IRS rules, you must report
as wages on Form W-2 the amount in excess of the
amount treated as substantiated. The excess amount is
subject to income tax withholding and social security and
Medicare taxes (or railroad retirement taxes, if
applicable). Report the amount treated as substantiated
(that is, the nontaxable portion) in box 12 using code L.
See the box 12 instructions for Code L—Substantiated
employee business expense reimbursements. (Use
box 14 if railroad retirement taxes apply.)
• Payments made under a nonaccountable plan are
reported as wages on Form W-2 and are subject to
federal income tax withholding and social security and
Medicare taxes (or railroad retirement taxes, if

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

-9-

IRS.gov/Individuals/International-Taxpayers/SpecialWithholding-Rules-for-US-Federal-Agency-EmployersWith-Employees-in-CNMI-or-Puerto-Rico.
Foreign agricultural workers. You must report
compensation of $600 or more paid in a calendar year to
an H-2A visa agricultural worker for agricultural labor. If
the H-2A visa agricultural worker furnishes a valid
taxpayer identification number, report these payments in
box 1 of Form W-2. If the worker does not furnish a valid
taxpayer identification number, report the payments on
Form 1099-MISC. See Form 1099-MISC below.
On Form W-2, no amount should be reported in box 3
or 5. In most cases, you do not need to withhold federal
income tax from compensation paid to H-2A visa
agricultural workers. Employers should withhold federal
income tax only if the H-2A visa agricultural worker and
the employer agree to withhold. The H-2A visa agricultural
worker must provide a completed Form W-4. If the
employer withholds income tax, the employer must report
the tax withheld in box 2 of Form W-2 and on line 8 of
Form 943. See Pub. 51 (Circular A).
Form 1099-MISC. If the H-2A visa agricultural worker
fails to furnish a taxpayer identification number to the
employer, and the total annual payments made to the
H-2A visa agricultural worker are $600 or more, the
employer must begin backup withholding on the payments
made until the H-2A visa agricultural worker furnishes a
valid taxpayer identification number. Employers must
report the compensation paid and any backup withholding
on Forms 1099-MISC and Form 945, Annual Return of
Withheld Federal Income Tax. See the current
Instructions for Forms 1099-MISC and 1099-NEC and the
current Instructions for Form 945.
For more information, go to IRS.gov/H2A.
Fringe benefits. Include all taxable fringe benefits in
box 1 of Form W-2 as wages, tips, and other
compensation and, if applicable, in boxes 3 and 5 as
social security and Medicare wages. Although not
required, you may include the total value of fringe benefits
in box 14 (or on a separate statement). However, if you
provided your employee a vehicle, you must include the
value of any personal use in boxes 1, 3, and 5 of Form
W-2. You must withhold social security and Medicare tax,
but you have the option not to withhold federal income tax
if you notify the employee and include the value of the
benefit in boxes 1, 3, 5, and 14. See Pub. 15-B for more
information.
Public Law 115-97, section 11045, does not
permit employees to deduct unreimbursed
CAUTION employee business expenses for tax years 2018
through 2025. If you included 100% of the vehicle’s
annual lease value in the employee’s income, the
employee will not be able to deduct expenses attributable
to the business use of an employer-provided vehicle. See
Pub. 15-B.

!

Golden parachute payments (not applicable to
Forms W-2AS, W-2CM, W-2GU, or W-2VI). Include any
golden parachute payments in boxes 1, 3, and 5 of Form
W-2. Withhold federal income, social security, and
Medicare taxes (or railroad retirement taxes, if applicable)

as usual and report them in boxes 2, 4, and 6,
respectively. (Use box 14 if railroad retirement taxes
apply.) Excess parachute payments are also subject to a
20% excise tax. If the excess payments are considered
wages, withhold the 20% excise tax and include it in box 2
as income tax withheld. Also report the excise tax in
box 12 with code K. For definitions and additional
information, see Regulations section 1.280G-1 and Rev.
Proc. 2003-68, 2003-34 I.R.B. 398, available at
IRS.gov/irb/2003-34_IRB#RP-2003-68.
Government employers. Federal, state, and local
governmental agencies have two options for reporting
their employees' wages that are subject to only Medicare
tax for part of the year and both social security and
Medicare taxes for part of the year.
The first option (which the SSA prefers) is to file a
single set of Forms W-2 per employee for the entire year,
even if only part of the year's wages are subject to both
social security and Medicare taxes. Check “941” (or “944”)
in box b of Form W-3 or check “941-SS” in box b of Form
W-3SS. The wages in box 5 of Form W-2 must be equal to
or greater than the wages in box 3 of Form W-2.
The second option is to file one set of Forms W-2 for
wages subject only to Medicare tax and another set for
wages subject to both social security and Medicare taxes.
Use a separate Form W-3 to transmit each set of Forms
W-2. For the Medicare-only Forms W-2, check “Medicare
govt. emp.” in box b of Form W-3. For the Forms W-2
showing wages subject to both social security and
Medicare taxes, check “941” (or “944”) in box b of Form
W-3 or check “941-SS” in box b of Form W-3SS. The
wages in box 5 of Form W-2 must be equal to or greater
than the wages in box 3 of Form W-2.
Group-term life insurance. You must include in boxes
1, 3, and 5 (or 14, if railroad retirement taxes apply) the
cost of group-term life insurance that is more than the cost
of $50,000 of coverage, reduced by the amount the
employee paid toward the insurance. Use Table 2-2 in
Pub. 15-B to determine the cost of the insurance. Also
show the amount in box 12 with code C. For employees,
you must withhold social security and Medicare taxes, but
not federal income tax. For coverage provided to former
employees, the former employees must pay the employee
part of social security and Medicare taxes (or railroad
retirement taxes, if applicable) on the taxable cost of
group-term life insurance over $50,000 on Form 1040 or
1040-SR. You are not required to collect those taxes.
However, you must report the uncollected social security
tax (or railroad retirement taxes, if applicable) with code M
and the uncollected Medicare tax (or RRTA Medicare tax,
if applicable) with code N in box 12 of Form W-2.
However, any uncollected Additional Medicare Tax (on
the cost of group-term life insurance, which, in
combination with other wages, is in excess of $200,000) is
not reported with code N in box 12.
Health flexible spending arrangement (FSA). For plan
year 2023, a cafeteria plan may not allow an employee to
request salary reduction contributions for a health FSA in
excess of $3,050 (as indexed for inflation).
If a cafeteria plan timely complies with the written plan
requirement limiting health FSA salary reduction
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General Instructions for Forms W-2 and W-3 (2023)

contributions, but one or more employees are erroneously
allowed to elect a salary reduction of more than $3,050 for
the plan year, the cafeteria plan will continue to be a
section 125 cafeteria plan for the plan year if:
• The terms of the plan apply uniformly to all participants,
• The error results from a reasonable mistake by the
employer (or the employer’s agent) and is not due to
willful neglect by the employer (or the employer’s agent),
and
• Salary reduction contributions in excess of $3,050 are
paid to the employee and reported as wages for income
tax withholding and employment tax purposes on the
employee’s Form W-2 (or Form W-2c) for the employee’s
taxable year in which, or with which, ends the cafeteria
plan year in which the correction is made.

!

CAUTION

The salary reduction contribution limit of $3,050
does not include any amount (up to $610) carried
over from a previous year.

For more information, see Notice 2013-71, 2013-47
I.R.B. 532, available at IRS.gov/irb/
2013-47_IRB#NOT-2013-71.
Health savings account (HSA). An employer's
contribution (including an employee's contributions
through a cafeteria plan) to an employee's HSA is not
subject to federal income tax withholding or social
security, Medicare, or railroad retirement taxes (or FUTA
tax) if it is reasonable to believe at the time of the payment
that the contribution will be excludable from the
employee's income. However, if it is not reasonable to
believe at the time of payment that the contribution will be
excludable from the employee's income, employer
contributions are subject to federal income tax
withholding, social security and Medicare taxes (or
railroad retirement taxes, if applicable), and FUTA tax,
and must be reported in boxes 1, 3, and 5 (use box 14 if
railroad retirement taxes apply); and on Form 940,
Employer's Annual Federal Unemployment (FUTA) Tax
Return.
You must report all employer contributions (including
an employee's contributions through a cafeteria plan) to
an HSA in box 12 of Form W-2 with code W. Employer
contributions to an HSA that are not excludable from the
income of the employee must also be reported in boxes 1,
3, and 5. (Use box 14 if railroad retirement taxes apply.)
An employee's contributions to an HSA (unless made
through a cafeteria plan) are includible in income as
wages and are subject to federal income tax withholding
and social security and Medicare taxes (or railroad
retirement taxes, if applicable). Employee contributions
are deductible, within limits, on the employee's Form 1040
or 1040-SR. For more information about HSAs, see
Notice 2004-2, Notice 2004-50, and Notice 2008-52.
Notice 2004-2, 2004-2 I.R.B. 269, is available at
IRS.gov/irb/2004-02_IRB#NOT-2004-2. Notice 2004-50,
2004-33 I.R.B. 196, is available at IRS.gov/irb/
2004-33_IRB#NOT-2004-50. Notice 2008-52, 2008-25
I.R.B. 1166, is available at IRS.gov/irb/
2008-25_IRB#NOT-2008-52. Also see Form 8889, Health
Savings Accounts (HSAs), and Pub. 969.
Lost Form W-2—Reissued statement. If an employee
loses a Form W-2, write “REISSUED STATEMENT” on
General Instructions for Forms W-2 and W-3 (2023)

the new copy and furnish it to the employee. You do not
have to add “REISSUED STATEMENT” on Forms W-2
provided to employees electronically. Do not send Copy A
of the reissued Form W-2 to the SSA. Employers are not
prohibited (by the Internal Revenue Code) from charging
a fee for the issuance of a duplicate Form W-2.
Military differential pay. Employers paying their
employees while they are on active duty in the U.S.
uniformed services should treat these payments as
wages. Differential wage payments made to an individual
while on active duty for periods scheduled to exceed 30
days are subject to income tax withholding, but are not
subject to social security, Medicare, and unemployment
taxes. Report differential wage payments in box 1 and any
federal income tax withholding in box 2. Differential wage
payments made to an individual while on active duty for
30 days or less are subject to income tax withholding,
social security, Medicare, and unemployment taxes and
are reported in boxes 1, 3, and 5. See Rev. Rul. 2009-11,
2009-18 I.R.B. 896, available at IRS.gov/irb/
2009-18_IRB#RR-2009-11.
Moving expenses. Effective for tax years 2018 through
2025, the exclusion for qualified moving expense
reimbursements applies only to members of the U.S.
Armed Forces on active duty who move pursuant to a
military order and incident to a permanent change of
station. All other employees have only nonqualified
moving expenses and expense reimbursements subject
to tax and withholding.
Report qualified moving expenses for members of the
Armed Forces as follows.
• Qualified moving expenses that an employer paid to a
third party on behalf of the employee (for example, to a
moving company), and services that an employer
furnished in kind to an employee, are not reported on
Form W-2.
• Qualified moving expense reimbursements paid directly
to an employee by an employer are reported only in
box 12 of Form W-2 with code P.
Nonqualified moving expenses and expense
reimbursements are reported in boxes 1, 3, and 5 (use
box 14 if railroad retirement taxes apply) of Form W-2.
These amounts are subject to federal income tax
withholding and social security and Medicare taxes (or
railroad retirement taxes, if applicable).
Nonqualified deferred compensation plans. Section
409A provides that all amounts deferred under a
nonqualified deferred compensation (NQDC) plan for all
tax years are currently includible in gross income to the
extent not subject to a substantial risk of forfeiture and not
previously included in gross income, unless certain
requirements are met. Generally, section 409A is effective
with respect to amounts deferred in tax years beginning
after December 31, 2004, but deferrals made before that
year may be subject to section 409A under some
circumstances.
It is not necessary to show amounts deferred during the
year under an NQDC plan subject to section 409A. If you
report section 409A deferrals, show the amount in box 12
using code Y. For more information, see Notice 2008-115,

-11-

2008-52 I.R.B. 1367, available at IRS.gov/irb/
2008-52_IRB#NOT-2008-115.
Income included under section 409A from an NQDC
plan will be reported in box 1 and in box 12 using code Z.
This income is also subject to an additional tax of 20%
that is reported on Form 1040 or 1040-SR. For more
information on amounts includible in gross income and
reporting requirements, see Notice 2008-115, available at
IRS.gov/irb/2008-52_IRB#NOT-2008-115. For information
on correcting failures to comply with section 409A and
related reporting, see Notice 2008-113, 2008-51 I.R.B.
1305, available at IRS.gov/irb/
2008-51_IRB#NOT-2008-113; Notice 2010-6, 2010-3
I.R.B. 275, available at IRS.gov/irb/
2010-03_IRB#NOT-2010-6; and Notice 2010-80, 2010-51
I.R.B. 853, available at IRS.gov/irb/
2010-51_IRB#NOT-2010-80.
See the Nonqualified Deferred Compensation
Reporting Example Chart.
Qualified equity grants under section 83(i). Report
the amount includible in gross income from qualified
equity grants under section 83(i)(1)(A) for the calendar
year in box 12 using code GG. This amount is wages for
box 1 and you must withhold income tax under section
3401(i) at the rate and manner prescribed in section
3401(t). You must withhold at the maximum rate of tax
without regard to the employee’s Form W-4. Social
security and Medicare taxation of the deferral stock is not
affected by these rules. See Notice 2018-97, 2018-52
I.R.B. 1062, available at IRS.gov/irb/
2018-52_IRB#NOT-2018-97.
Qualified small employer health reimbursement arrange