How to Read W2 Wage and Tax Statement
Form W-2 Explained
Box one: Wages, Tips, Other Compensation. This is your total taxable wages for federal income taxation purposes. This figure includes your regular wages, bonuses, and any taxable fringe benefits (such equally education benefits greater than $5,250), rewards and recognition, gifts, taxable moving expenses, besides as the taxable value of group-term life insurance in excess of $50,000 (see box 12, beneath). The amount in Box i will generally be the "YTD Gross" under the Summary section of your final earnings statement, minus whatever pre-tax deductions such as wellness/dental/vision insurance, flexible spending accounts and retirement and tax deferred savings plans, etc. The "YTD Gross" is the sum of the Year to Date (YTD) amounts under Hours and Earnings.
Box 2: Federal income taxation withheld. This amount represents the total amount withheld from your paycheck for federal income taxes.
Box 3: Social Security Wages. This represents income subject area to Social Security tax. At that place is a Social Security wage base each twelvemonth and in one case you earn up to that corporeality, y'all no longer will accept deductions for Social Security taxation. Social Security wages are reduced by pre-revenue enhancement deductions such as health/dental/vision insurances, parking and flex spending merely not reduced by your contributions to a retirement programme (403b or 457.) The only applicable exceptions are W&G students working at Due west&M while enrolled at least half time and attending classes, besides as nonresident alien employees visiting the U.S. for a limited period on F-ane, J-1, M-1 or Q-ane visas and performing services to deport out the purpose for which such visas have been issued.
Box 4: Social Security Tax Withheld. This amount represents the full corporeality withheld from your paycheck for Social Security taxes. The Social Security revenue enhancement charge per unit is 6.2%, and a matching amount of 6.2% is paid by W&1000. The only applicable exceptions are Due west&M students working at W&M while enrolled at least half time and attending classes, besides as nonresident alien employees visiting the U.S. for a limited period on F-1, J-i, Chiliad-1 or Q-1 visas and performing services to carry out the purpose for which such visas have been issued.
Box 5: Medicare Wages and Tips. This represents income subject field to Medicare revenue enhancement. At that place is no maximum wage base of operations for Medicare taxes. Medicare wages are reduced past pre-tax deductions such as health/dental/vision insurances, parking and flex spending but not reduced past your contributions to a retirement programme (403b or 457.) The only applicable exceptions are W&M students working at Westward&M while enrolled at to the lowest degree half fourth dimension and attending classes, as well as nonresident alien employees visiting the U.S. for a limited period on F-1, J-1, M-one or Q-1 visas and performing services to carry out the purpose for which such visas have been issued.
Box half dozen: Medicare Tax Withheld. This amount represents the total amount withheld from your paycheck for Medicare taxes. The Medicare taxation rate is ane.45%, and a matching amount of 1.45% is paid by W&One thousand. Once you earn $200,000 annually, there is an additional .9% that the employee pays which makes a total of 2.35%. The merely applicative exceptions are Westward&M students working at W&M while enrolled at least one-half time and attention classes, as well every bit nonresident alien employees visiting the U.S. for a limited period on F-i, J-1, G-i or Q-ane visas and performing services to carry out the purpose for which such visas have been issued.
Boxes seven and 8: Social Security Tips and Allocated Tips. This is not applicable to W&M employees.
Box 9: Bare; Field not used.
Box 10: Dependent Care Benefits. This amount represents any corporeality reimbursed for dependent care expenses through a flexible spending business relationship. W&Thou must report the pre-taxation amount paid into a dependent care flexible spending account as function of the university's Benefits Programme. Merely dependent care benefits are reportable in this box.
Box eleven: Nonqualified Plans. This is not applicable to Westward&Thou employees.
Box 12:
- 12 C - Taxable Cost of Grouping-Term Life Insurance (GTL). The calculated value of group-term life insurance in excess of $fifty,000 that has been added into Box ane as "other bounty".
- 12 Eastward - Section 403(b) Salary Reductions. This represents your total constituent deferrals to TIAA/Fidelity retirement plans.
- 12 G - Department 457(b) Contributions. Any amount that you contributed to the Republic'due south Revenue enhancement Deferred Savings Plan.
- 12 P - Excludable Moving Expense Reimbursements. Non-taxable moving expenses for which you lot were reimbursed directly (not included in taxable wages in Box i).
- 12 DD – Price of Employer-Sponsored Wellness Coverage. This is the cost of your employer sponsored health coverage. The amount reported is not taxable. This represents the employer paid portion of health insurance premiums and is for informational purposes only.
Box 13. The "Retirement plan" block will be checked if you contributed to any of W&Thousand's tax deferred options, or if you lot were a participant in W&M's Optional Retirement Program or the Commonwealth's defined benefit programme through the Virginia Retirement Arrangement (VRS). By checking the "Retirement programme" block, an employer notifies the IRS that an employee's eligibility for a deductible Individual Retirement Arrangement (IRA) is express.
Box 14. Other – This box may be used by an employer to report any additional taxation information (e.g. taxable auto allowance.)
- 14A Employee Paid Health Premium
- 14B Parking Deductions
- 14C Others (Flex deductions and fees, VRS employee contributions)
Box 15: State/Employer'due south Land ID Number – This box just reports the Westward&One thousand's state and state identification number for revenue enhancement purposes.
Box 16: State wages, tips, etc. – This amount represents the total of taxable wages earned in that state.
Box 17: State Income tax – This corporeality represents the total of land income taxes withheld from your paycheck for the wages reported in Box 16.
Box xviii, 19 and twenty: Local Wages, Local Income Taxation and Locality Proper name – These boxes apply to out-of-state employees only, whose revenue enhancement residency states collect local income taxes.
Source: https://www.wm.edu/offices/financialoperations/payroll/understandingw2/wageandtaxstatement/index.php
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