2018 General Instructions for Forms W-2 and W-3

1 2018 Department of the Treasury Internal Revenue Service General Instructions for Forms W-2 and W-3. (Including Forms W-2AS, W-2CM, W-2GU, W-2VI, W-3SS, W-2c, and W-3c). Section references are to the Internal Revenue Code For Hurricane Harvey and Tropical Storm Harvey, see unless otherwise noted. Notice 2017-48, 2017-39 254 at 2017-39_IRB#NOT-2017-48, Contents Page Future Developments .. 1. For Hurricane Irma and Tropical Storm Irma, see Notice 2017-52, 2017-40 262 at What's New .. 1 2017-40_IRB#NOT-2017-52, Reminders .. 2 For Hurricane Maria and Tropical Storm Maria, see Need Help? .. 4 Notice 2017-62, 2017-44 460 at How To Get Forms and Publications .. 5 2017-44_IRB#NOT-2017-62, and Common Errors on Forms W-2.

2 5 For the California Wildfires, see Notice 2017-70, General Instructions for Forms W-2 and W-3 .. 5. 2017-48 543 at 2017-48_IRB#NOT-2017-70. Special Reporting Situations for Form W-2 .. 7. Penalties .. 13 Suspension of exclusion for qualified moving ex- pense reimbursements. The Tax Cuts and Jobs Act Specific Instructions for Form W-2 .. 15. (Public Law 115-97) temporarily suspends the exclusion Specific Instructions for Form W-3 .. 23 for qualified moving expense reimbursements under General Instructions for Forms W-2c and W-3c .. 25 section 132(a)(6) and (g). However, the exclusion still Special Situations for Forms W-2c and W-3c .. 25 applies for a member of the Armed Forces of the United Specific Instructions for Form W-2c.

3 27 States on active duty who moves under a military order to Specific Instructions for Form W-3c .. 28 a permanent change of station. This change is effective Form W-2 Reference Guide for Box 12 Codes .. 30. for taxable years beginning after December 31, 2017, and before January 1, 2026. See 115-97, section 11048. Form W-2 Box 13 Retirement Plan Checkbox and Code P Excludable moving expense Decision Chart .. 30. reimbursements paid directly to a member of the Nonqualified Deferred Compensation Reporting Armed Forces for more information. Example Chart .. 31. However, under Notice 2018 -75, reimbursements an Index .. 33 employer pays to an employee in 2018 for qualified Future Developments moving expenses from a move in a prior year are not subject to federal income or employment taxes.

4 The same For the latest information about developments related to is true if the employer pays a third party in 2018 for Forms W-2 and W-3 and their Instructions , such as qualified moving services provided to an employee prior legislation enacted after they were published, go to to 2018 . The notice also gives guidance to employers who have included such amounts in employee's wages or What's New compensation and have withheld and paid federal employment taxes on them. See Notice 2018 -75, 2018 -41. Leave-based donation programs to aid victims of 556, at #NOT- 2018 -75 for Hurricanes and Tropical Storms Harvey, Irma, and more information. Maria, and the 2017 California Wildfires.

5 Under these programs, employees may donate their vacation, sick, or Combat pay of members of the Armed Forces per- personal leave in exchange for employer cash payments forming services in the Sinai Peninsula of Egypt. The made before January 1, 2019, to qualified tax-exempt Tax Cuts and Jobs Act also temporarily makes the Sinai organizations providing relief for the victims of Hurricane Peninsula of Egypt a qualified hazardous duty area. Treat Harvey and Tropical Storm Harvey, Hurricane Irma and this hazardous duty area as a combat zone for the Tropical Storm Irma, Hurricane Maria and Tropical Storm exclusion from income of certain combat pay under Maria, and the California Wildfires that began on October section 112 and exclusion from wages under section 8, 2017.

6 The donated leave need not be included in the 3401(a)(1). For purposes of withholding, this change income or wages of the employee. The employer may generally applies to remuneration paid during the period deduct the cash payments as business expenses or December 22, 2017 through December 31, 2017, and charitable contributions. For more information, impacted taxable years 2018 through 2025. For more information, taxpayers should see the following: including a special rule for non-calendar year tax years for the period that includes December 22, 2017, see 115-97, section 11026. Mar 04, 2019 Cat. No. 25979S. New qualified equity grants under section 83(i). The The Medicare wages and tips are less than the Tax Cuts and Jobs Act added section 83(i) for qualified minimum yearly earnings subject to social security and equity grants.

7 The law also added new Form W-2 Medicare tax withholding for a household employee. reporting requirements for these grants. Employers with If the above conditions occur in an electronic wage employees who have qualified equity grants must report report, the SSA will notify the submitter by email or postal the amount includible in gross income under section 83(i) mail to correct the report and resubmit it to the SSA. If the for an event which occurs in the calendar year in box 12 above conditions occur in a paper wage report, the SSA. using code GG. Also, employers must report the will notify the employer by email or postal mail to correct aggregate amount of income which employees elect to the report and resubmit it to the SSA.

8 Defer under section 83(i) as of the close of the calendar Note. Do not write corrected or amended on any year in box 12, using code HH. See 115-97, section resubmitted reports. 13603 for more information. See also Code GG Income Household employers, see Pub. 926, Household from qualified equity grants under section 83(i) and Code Employer's Tax Guide. HH Aggregate deferrals under section 83(i) elections as of the close of the calendar year. Social security numbers. Do not truncate social security numbers shown on Forms W-2, W-2AS, W-2GU, Penalties increased. Failure to file and failure to furnish and W-2VI. Social security numbers are required on penalties and penalties for intentional disregard of filing Forms W-2.

9 See Taxpayer identification numbers (TINs), and payee statement requirements have increased due to later. Also see Regulations section (b)(2). adjustments for inflation. The higher penalty amounts apply to returns required to be filed after December 31, Filers of other Forms , such as certain Forms 1099/1098, 2018 . See Penalties for more information. may truncate the social security number (XXX-XX-1234). or employee identification number (XX-XXX1234) of the Reminders payee on the payee statement to combat identity theft. Due date for filing with SSA. The due date for filing Limit on health flexible spending arrangement (FSA). 2018 Forms W-2, W-2AS, W-2CM, W-2GU, W-2VI, W-3, For 2018 , a cafeteria plan may not allow an employee to and W-3SS with the SSA is January 31, 2019, whether request salary reduction contributions for a health FSA in you file using paper Forms or electronically.

10 Excess of $2,650. The salary reduction contribution limitation of $2,650 does not include any amount (up to Extensions of time to file. Extensions of time to file $500) carried over from a previous year. For more Form W-2 with the SSA are no longer automatic. You may information, see Health flexible spending arrangement request one 30-day extension to file Form W-2 by (FSA). submitting a complete application on Form 8809, Application for Extension of Time To File Information Additional Medicare Tax. In addition to withholding Returns, including a detailed explanation of why you need Medicare tax at , an employer is required to additional time and signed under penalties of perjury.