W2 Form Definitions

This document is only meant for definition purposes only of pay and wages reported on this form.

Instructions

Box 1.   

• Wages, tips, and other compensation in relation to your federal withholding.  This amount is your annual salary, supplemental pay, taxable fringe benefits, and other financial compensation, minus your pretax health (dental, vision, flex, dependent care, and/or HMO, POS, &/or PPO) and retirement plan contributions (also does not include the amount designated as Ministerial Housing Allowance).  

Box 2. 

• This is the amount of federal withholding tax paid for the present tax year.  This amount is determined by your elections on your Form W-4 in relation to the IRS tax tables.   You can reference IRS Publication 15, Circular E, Employer’s Tax Guide (www.irs.gov).

Box 3 & 5.

• Social Security wages and Medicare wages and tips.  This amount is your annual salary, supplemental pay, taxable fringe benefits, and other financial compensation, minus your pretax health (dental, vision, flex, dependent care, and/or HMO, POS, &/or PPO).   There is a limit of $102,000.00 for earnings subject to Social Security taxation for the 2008 tax year.  Reference www.socialsecurity.gov

Box 4.  

• This is the amount of social security tax withheld from your earnings, Old Age, Survivors, and Disability Insurance (OASDI).  This amount is determined by your Social Security wages multiplied by the factor of 6.2%.   The limit for 2008 is $6,324.00.

Box 6.  

• This is the amount of Medicare tax withheld from your earnings.  This amount is determined by your Medicare wages and tips multiplied by the factor of 1.45%.   There are no earnings or taxation limit on this payroll tax item.

Box 9.         

• Those employees that completed a Form W-5 to be eligible for advanced Earned Income Credit on their regular payroll processing will have an amount here. A new form must be completed in January of every new tax year.

Box 10. 

• This amount is the total dependent care benefits that your employer paid to you or incurred on your behalf [including amounts from a section 125 (cafeteria) Plan].  Any amount over $5,000 also is included in box 1.  You must complete Schedule 2 (Form 1040A) or Form 2441, Child and Dependent Care Expenses, to compute any taxable and nontaxable amounts.

Box 11.  

• This amount is (a) reported in box 1 if it is a distribution made to you from a nonqualified deferred complensation or nongovernmental section 457(b) plan or (b) included in box 3 and or/ 5 if it is a prior year deferral under a nonqualified or section 457(b) plan that became taxable for social security and Medicare taxes this year because there is no longer a substantial risk of forfeiture of your right to the deferred amount.
  

Box 12.    
The following list explains the codes shown in box 12.  You may need this information to complete your tax return.

• D—Elective deferrals to a section 401(k) cash or deferred arrangement.  Also includes deferrals under a SIMPLE retirement account that is part of a section 401(k) arrangement.
• E—Elective deferrals under section 403(b) salary reduction agreement
• G—Elective deferrals and employer contributions (including nonelective deferrals) to a section 457(b) deferred compensation plan.

Box 13. 

• If the “Retirement plan” box is checked, special limits may apply to the amount of traditional IRA contributions that you may deduct.  ACU’s Mandatory retirement plan is designated as an “X”.  No amount is to be reported here.

Box 14. 

• Special notations such as Ministerial Housing Allowance.

Box 15, 16, & 17. 

• Information for this location are for university employees that are working in a state that requires state income/payroll taxes to be deducted for payroll payments.

The following benefit contribution amounts are subtracted from your gross income prior to the calculation of the FICA wages to be taxed for both the 6.2% - FICA OASDI and the 1.45% FICA Med.:

• Ministerial Housing Allowance
• Dental Plan Pretax
• Vision Pretax
• Dependent Care Pretax
• Non Rembursed (Medical) Pretax - Flex
• Health Insurances - HMO, POS and PPO - Pretax      
  

The following benefit contribution amounts are subtracted from your gross income prior to the calculation of the federal withholding tax.  This tax is determined by your Form W4 elections in relation to the IRS Tax Table:

• Tax Sheltered Annuities (misc. elective plans)   
• University Mandatory Retirement Plan 403(b)   
• University Elective Retirement Plans 401(k)   
• University Voluntary Salary Deferral Plan 403(b) and 457(b)