Tuesday, January 15, 2019

Descriptions and Sources of Form W-2 Box Information

IRS Form W-2 is aFederal tax return filed by an employee annually to report the total Federal,FICA, State taxes and Contributions withheld within a calendar year. Below areeach W-2 box's description and the source where NetSuite pulls up the information:

Box

Description

Source

Note:

1

Total taxable earnings for the year

Federal Withholding- Taxable Wage Base

 

2

Total Federal Withholding

Federal Withholding- Amount

 

3

Total Earnings subject to Social Security

Social Security Employee- Taxed Wage Base

 

4

Total Social Security Withheld

Social Security Employee- Amount

 

5

Total Earnings subject to Medicare

Medicare Employee- Taxed Wages

 

6

Total Medicare Withheld

Medicare Employee- Amount

 

7

Total Tips directly received by employees

Earnings with a pay code of "Tips"

 

8

Total Tips Paid by the Employer

Earnings with a pay code of "Tips Paid by Employer"

The wage amount is not included in Boxes 1, 3, 5 and 7.

9

Advance EIC Payment

Do not Enter any amount

 

10

Dependent Care benefits

Deductions with pay code of "Cafeteria Contrib. - FSA Dependent Care"

 

11

Non-Qualified plans

Portion of amount reported in box 1 or 3 and/or 5 earned In a prior year

 

12

Codes

See Help Guide for the list of qualified deductions/ Earning codes

 

13

Check boxes

Manually checked based on employee's eligibility

 

14

Others

See Help Guide for the list of qualified deductions/ Earning codes

 

15

State subject for withholding and Account number

Employee's Jurisdiction for the state and Company's Jurisdictions for the Account number

If an employee works in two states, both should be reported in this box. If more than two states, prepare a second W2 form

16

Total Earnings subject to State Withholding

State Withholding(s)- Taxable Wage Base

If multiple states, the total depends on Home and Workplace setup, Home and Workplace movement, and state requirements.

17

Total State Withholding

State Withholding- Amount

 

18

Total Earnings subject to Locale taxes

Local/County tax- Taxed Wage Base

 

19

Total Local/County taxes

Local/County tax- Amount

 

20

Locality name

Employee Jurisdiction

 

 

 

For more currentinformation, please see the official website of the Internal Revenue Service(IRS)

https://www.irs.gov/pub/irs-pdf/iw2w3.pdf

 

OtherReferences:

1.      Employee Management > Payroll > NetSuite Payroll > Getting Started with NetSuite Payroll > Using Standard Pay Codes > Using DeductionCodes

2.      Employee Management > Payroll > NetSuite Payroll > Getting Started with NetSuite Payroll > Using Standard Pay Codes > Using EarningCodes

 

 

Disclaimer: To ensure compliance with requirementsimposed by the IRS under Circular 230, NetSuite informs you that any U.S.federal tax advice contained in this communication (including any attachments),unless otherwise specifically stated, was not intended or written to be used,and cannot be used, for the purpose of (1) avoiding penalties under theInternal Revenue Code or (2) promoting, marketing or recommending to anotherparty any matters addressed herein. 

These materials do not constitute tax,legal, or accounting advice and neither NetSuite, nor its agents, employees, orrepresentatives are in the business of offering such advice.  Please consult your tax, legal, andaccounting advisors for tax, legal, or accounting advice.

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