2021 General Instructions for Forms W-2 and W-3

1 Userid: CPMS chema: instrxLeadpct: 100%Pt. size: 10 Draft Ok to PrintAH XSL/XMLF ileid: .. iw-2-&-w-3/2021/a/xml/cycle04/source(Ini t. & Date) _____Page 1 of 35 9:50 - 23-Nov-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before 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)Department of the TreasuryInternal Revenue ServiceSection references are to the Internal Revenue Code unless otherwise 's Help?..4 How To Get Forms and Errors on Forms Instructions for Forms W-2 and Reporting Situations for Form Instructions for Form Instructions for Form Instructions for Forms W-2c and Situations for Forms W-2c and Instructions for Form Instructions for Form W-2 Reference Guide for Box 12 Codes.

2 31 Form W-2 Box 13 Retirement Plan Checkbox Decision Deferred Compensation Reporting Example DevelopmentsFor 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 's NewMaximum amount of dependent care benefits exclud-able from income may be increased for 2021. The American Rescue Plan Act of 2021 (ARP) permits employers to increase the amount of dependent care benefits that can be excluded from an employee's income from $5,000 to $10,500 ($5,250 for Married filing separately).

3 See Box 10 Dependent care benefits for additional when reconciling Forms W-2 and W-3 with Forms 941, 941-SS, 943, 944, CT-1, and Sched-ule H (Form 1040) due to Coronavirus (COVID-19) re-lated 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 for 2020. 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 W-2c reporting of employee social security tax and railroad retirement tax act (RRTA) deferred in 2020.

4 If you deferred the employee portion of social security or RRTA tax under Notice 2020-65, see Reporting of employee social security and RRTA tax deferred in 2020, later, for more information on how to report the deferrals. Also see Notice 2020-65, 2020-38 567, available at #NOT-2020-65. Notice 2021-11, available at , modifies Notice 2020-65 to extend the period in 2021 over which you are to withhold and pay the deferred taxes. The notice reflects 116-260, Division N (the COVID-related Tax Relief Act of 2020), section 274, which extends the withholding period in Notice 2020-65 from April 30, 2021, to December 31, 2021.

5 See Form W-2 Reporting of Employee Social Security Tax Deferred under Notice 2020-65, available at tax relief. Disaster tax relief is available for those affected by recent disasters. For more information about disaster relief, go to 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, 2021. See Penalties for more date for filing with SSA. The due date for filing 2021 Forms W-2, W-2AS, W-2CM, W-2GU, W-2VI, W-3, and W-3SS with the SSA is January 31, 2022, whether you file using paper Forms or of time to file.

6 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.

7 See Extension of time to furnish Forms W-2 to employees for more 23, 2021 Cat. No. 25979 SPage 2 of 35 Fileid: .. iw-2-&-w-3/2021/a/xml/cycle04/source9:50 - 23-Nov-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before it done your Forms W-2 and W-2c with the SSA. See wage reports from the Social Security Ad-ministration (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 , Forms W-2 and W-2c electronic and paper wage reports for household employers will be rejected under the following conditions.

8 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 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 Do not write corrected or amended on any resubmitted employers, see Pub.

9 926, Household Employer's Tax security numbers. Employers may now 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 (a)(1)(i)(B) and (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.

10 Check with your state, local, territorial, or possession governments to determine whether you are permitted to truncate SSNs on copies of Form W-2 submitted to the employer s EIN may not be truncated on any form. See Regulations section (a)(1)(i)(A) and (b)(2)(iv).Limit on health flexible spending arrangement (FSA). For 2021, a cafeteria plan may not allow an employee to request salary reduction contributions for a health FSA in excess of $2,750. The salary reduction contribution limitation of $2,750 does not include any amount carried over from a previous year. For 2020 and 2021, there isn t a limitation on the amount that can be carried over from a previous year, if you so provide in your plan.