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2026
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
unless otherwise noted.
Contents
Page
Future Developments . . . . . . . . . . . . . . . . . . . . . . . . 1
What’s New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Need Help? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
How To Get Forms and Publications . . . . . . . . . . . . . . 6
Common Errors on Forms W-2 . . . . . . . . . . . . . . . . . 6
General Instructions for Forms W-2 and W-3 . . . . . . . . 6
Special Reporting Situations for Form W-2 . . . . . . . . . 8
Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Specific Instructions for Form W-2 . . . . . . . . . . . . . . 16
Specific Instructions for Form W-3 . . . . . . . . . . . . . . 24
General Instructions for Forms W-2c and W-3c . . . . . 27
Special Situations for Forms W-2c and W-3c . . . . . . 27
Specific Instructions for Form W-2c . . . . . . . . . . . . . 29
Specific Instructions for Form W-3c . . . . . . . . . . . . . 30
Form W-2 Reference Guide for Box 12 Codes . . . . . 32
Form W-2 Box 13 Retirement Plan Checkbox
Decision Chart . . . . . . . . . . . . . . . . . . . . . . . . . 32
Nonqualified Deferred Compensation Reporting
Example Chart . . . . . . . . . . . . . . . . . . . . . . . . . 33
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Future Developments
For 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
IRS.gov/FormW2.
What’s New
State Paid Family and Medical Leave Act (PFML Act).
The PFML Act provides wage replacement to workers for
periods in which they need to take time off from work due
to their nonoccupational injuries, illnesses, or medical
conditions, or to care for a family member with a serious
health condition or other prescribed circumstance. You
must include the employee contribution and the employer
voluntary payment as wages on the Form W-2. See Rev.
Rul. 2025-4, I.R.B. 758 and Notice 2026-6 for more
information.
Public Law 119-21, commonly known as the One Big
Beautiful Bill Act, changes. P.L. 119-21, enacted July 4,
2025, contains several new items that may affect
employers.
Wage reporting threshold increased. For wages
paid after calendar year 2025, P.L. 119-21 increases the
Jan 29, 2026
wage reporting threshold from $600 to $2,000 if no federal
income, social security, or Medicare tax was withheld.
This threshold will be adjusted for inflation each calendar
year after 2026.
Box 14 on the 2026 Forms W-2, W-2AS, W-2GU,
W-2VI, and W-2c has been revised. Box 14 has been
split into box 14a and box 14b. Information that was
reported in box 14—Other will now be reported in
box 14a—Other. Box 14b was created to report the
Treasury Tipped Occupation Code(s).
The Form W-2c was released in January 2026 and has
a revision date (Rev. 1-2026) to the right of the bold W-2c.
Changes to boxes 9 and 14a on the 2026 Forms
W-2, W-2AS, W-2GU, W-2VI, and W-2c. Box 9 was
reduced in size so that an additional entry can be input
into box 14a.
Deduction for qualified tips. For tax years beginning
after 2024 and ending before 2029, P.L. 119-21 allows
certain employees and self-employed individuals to
deduct up to $25,000 of qualified tips received in
occupations that are listed by the IRS as having
customarily and regularly received tips on or before
December 31, 2024, on their income tax return. Qualified
tips are cash tips, which include voluntary cash or charged
tips received from customers or, in the case of employees,
through tip-sharing arrangements. Mandatory service
charges added to the bill are not qualified tips. Tips are
generally subject to federal income tax withholding and
both the employer share and employee share of social
security tax and Medicare tax if the tips received are $20
or more per month. Employers must file Forms W-2 with
the SSA and furnish statements to tip recipients showing
cash tips received and the Treasury Tipped Occupation
Code(s) of the tip recipient.
New box 12, code TP, will be used to report the total
amount of cash tips reported to the employer. See Code
TP—Total amount of cash tips reported to the employer,
for more information.
New box 14b will be used to report the Treasury Tipped
Occupation Code(s). See Box 14b—Treasury Tipped
Occupation Code(s), for more information.
Deduction for qualified overtime. For tax years
beginning after 2024 and ending before 2029, P.L. 119-21
allows individuals (employees and other workers not
treated as employees) to deduct up to $12,500 ($25,000 if
married filing jointly) in qualified overtime compensation
from their income subject to federal income tax on their
income tax return. Qualified overtime is compensation that
exceeds the regular rate of pay (such as the “and-a-half”
portion of time-and-a-half compensation) that is paid to an
individual required under section 7 of the Fair Labor
Instructions for Form W-2 and Form W-3 (2026) Catalog Number 25979S
Department of the Treasury Internal Revenue Service www.irs.gov
Standards Act (FLSA) of 1938. Overtime compensation is
generally subject to federal income tax withholding and
both the employer share and employee share of social
security tax and Medicare tax. Employers must file Forms
W-2 with the SSA and furnish statements to overtime
recipients showing qualified overtime compensation paid
during the year.
New box 12, code TT, will be used to report the total
amount of qualified overtime compensation. See Code
TT—Total amount of qualified overtime compensation, for
more information.
Employer contributions to Trump accounts. P.L.
119-21 allows for a Trump account, which is a new type of
traditional individual retirement account, to be established
for a child who has not attained age 18.
Beginning July 4, 2026, employers may contribute up to
$2,500 a year, which will be indexed for inflation after tax
year 2027, to the Trump account of an employee or of a
dependent of an employee, and the amount will be
excluded from the gross income of the employee if paid
pursuant to a Trump account contribution program. In
general, this account has an annual contribution limit
(including from employer contributions) of $5,000, which
will be indexed for inflation after tax year 2027. For more
information about employer contributions to Trump
accounts, see Pub. 15-A, Employer’s Supplemental Tax
Guide.
New box 12, code TA, will be used to report employer
contributions to Trump accounts of an employee or
dependent of an employee that are paid pursuant to a
section 128 Trump account contribution program. See
Code TA—Employer contributions under a section 128
Trump account contribution program paid to a Trump
account of an employee or a dependent of an employee,
for more information.
Penalties 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,
2026. See Penalties for more information.
Reminders
New procedure to request extension of time to furnish recipient copies of Form W-2. Complete Form
15397, Application for Extension of Time to Furnish
Recipient Statements, to request extension of time for
furnishing Copies 2, B, and C to your employees. See
Form 15397 for more information.
Forms W-2, W-2AS, W-2GU, W-2VI, W-3, W-3SS, W-2c,
and W-3c have been updated for a new OMB Number.
All of the 2025 Forms W-2, W-2AS, W-2GU, W-2VI, W-3,
and W-3SS have been updated to show the new OMB
Number 1545-0029.
In addition, updated correction Forms W-2c and W-3c
were released in June of 2024. The forms have a revision
date (Rev. 6-2024) to the right of the bold W-2c or W-3c.
These forms have been updated for the new OMB
Number and certain editorial changes were also made to
the forms.
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Disaster tax relief. Disaster tax relief is available for
those affected by recent disasters. For more information
about disaster relief, go to IRS.gov/DisasterTaxRelief.
Online fillable copies for recipients. You may complete
and print Copies 1, B, C, 2 (if applicable), and D (if
applicable) of Forms W-2, W-2AS, W-2GU, W-2VI, and
W-2c on IRS.gov to provide to the respective recipient. An
entry made in any one of these copies will automatically
populate to the other copies. As before, Copy A cannot be
completed online to print and file with the SSA and is
posted on IRS.gov for informational purposes only.
Due date for filing with SSA. The due date for filing
2026 Forms W-2, W-2AS, W-2CM, W-2GU, W-2VI, W-3,
and W-3SS with the SSA is February 1, 2027, whether
you file using paper forms or electronically.
Extensions of time to file. 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.
See Extension of time to furnish Forms W-2 to employees
for more information.
Tip: Get it done faster...
E-file your Forms W-2 and W-2c with the SSA. See
E-filing.
Rejected wage reports from the Social Security Administration (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.
• Medicare tax is greater than zero; Medicare wages and
tips are equal to zero.
Additionally, Forms W-2 and W-2c electronic and paper
wage reports for household employers will be rejected
under the following conditions.
• 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.
• The Medicare wages and tips are less than the
minimum yearly earnings subject to social security and
Medicare tax withholding for a household employee.
If the above conditions occur in an electronic wage
report, an error message will alert the submitter to correct
the report. 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 SSA.
Note: Do not write “corrected” or “amended” on any
resubmitted reports.
General Instructions for Forms W-2 and W-3 (2026)
Household employers, see Pub. 926, Household
Employer’s Tax Guide.
Social security numbers (SSNs). Employers may
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 31.6051-1(a)(1)(i)(B) and
31.6051-2(a). To truncate where allowed, replace the first
five digits of the nine-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. Check with your state,
local, or territorial governments to determine whether you
are permitted to truncate SSNs on copies of Form W-2
submitted to the government.
An employer’s EIN may not be truncated on any form.
See Regulations section 31.6051-1(a)(1)(i)(A) and
301.6109-4(b)(2)(iv).
Limit on health flexible spending arrangement (FSA).
For 2026, a cafeteria plan may not allow an employee to
request salary reduction contributions for a health FSA in
excess of $3,400. The salary reduction contribution
limitation of $3,400 does not include any amount carried
over from a previous year. For more information, see
Health flexible spending arrangement (FSA).
Additional Medicare Tax. In addition to withholding
Medicare tax at 1.45%, an employer is required to
withhold a 0.9% Additional Medicare Tax on any Federal
Insurance Contributions Act (FICA) wages or Railroad
Retirement Tax Act (RRTA) compensation it pays to an
employee in excess of $200,000 in a calendar year. An
employer is required to begin withholding Additional
Medicare Tax in the pay period in which it pays wages or
compensation in excess of $200,000 to an employee and
continue to withhold it until the end of the calendar year.
Additional Medicare Tax is imposed only on the employee.
There is no employer share of Additional Medicare Tax. All
wages and compensation that are subject to Medicare tax
are subject to Additional Medicare Tax withholding if paid
in excess of the $200,000 withholding threshold.
For more information on Additional Medicare Tax, go to
IRS.gov/ADMTfaqs.
Unless otherwise noted, references to Medicare tax
include Additional Medicare Tax.
Medicaid waiver payments. Notice 2014-7 provides
that certain Medicaid waiver payments may be excluded
from gross income for federal income tax purposes. See
Notice 2014-7, 2014-4 I.R.B. 445, available at IRS.gov/irb/
2014-4_IRB#NOT-2014-7. Also see IRS.gov/
MedicaidWaiverPayments for questions and answers on
the notice.
Report Medicaid waiver payments excluded from box 1
of Form W-2 under Notice 2014-7 in box 12 with code II.
Business Services Online (BSO).
CAUTION: Business Services Online (BSO) has been
updated. Additional levels of security are now required to
access BSO employer services. If you have not updated
General Instructions for Forms W-2 and W-3 (2026)
your credentials since March 25, 2023, you will need to
update your credentials as soon as possible, in order to
prevent any delays in e-filing Forms W-2 and W-2c. You
will not be able to use the services provided by BSO
without having the new credentials and authentications for
your account. New and current users should allow at least
2 weeks to complete the registration process. For more
information, go to the SSA’s website at SSA.gov/bso.
The SSA has enhanced its secure BSO website to
make it easier to register and navigate. Use BSO’s online
fill-in forms to create, save, and submit Forms W-2 and
W-2c to the SSA electronically. BSO lets you print copies
of these forms to file with state or local governments,
distribute to your employees, and keep for your records.
BSO generates Form W-3 automatically based on your
Forms W-2. You can also use BSO to upload wage files to
the SSA, check on the status of previously submitted
wage reports, and take advantage of other convenient
services for employers and businesses. Visit the SSA’s
Employer W-2 Filing Instructions & Information website at
SSA.gov/employer for more information about using BSO
to save time for your organization. Here you will also find
forms and publications used for wage reporting,
information about verifying employee social security
numbers online, how to reach an SSA employer services
representative for your region, and more.
Tip: Preview BSO by viewing a brief online tutorial. Go to
SSA.gov/employer/bsotut.htm.
Correcting wage reports. You can use BSO to create,
save, print, and submit Forms W-2c, Corrected Wage and
Tax Statement, online for the current year as well as for
prior years. After logging into BSO, navigate to the
Electronic Wage Reporting home page and click on the
“Forms W-2c/W-3c Online” tab. Also see E-filing and
E-filing Forms W-2c and W-3c.
Tax relief for victims of terrorist attacks. Disability
payments for injuries incurred as a direct result of a
terrorist attack directed against the United States (or its
allies) are not included in income. Because federal
income tax withholding is required only when a payment is
includable in income, no federal income tax should be
withheld from these payments.
Distributions from governmental section 457(b)
plans of state and local agencies. Generally, report
distributions from section 457(b) plans of state and local
agencies on Form 1099-R, Distributions From Pensions,
Annuities, Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc. See Notice 2003-20 on
page 894 of Internal Revenue Bulletin 2003-19 at
IRS.gov/pub/irs-irbs/irb03-19.pdf.
Earned income tax credit (EITC) notice (not applicable to Forms W-2AS, W-2CM, W-2GU, and W-2VI). You
must notify employees who have no income tax withheld
that they may be able to claim an income tax refund
because of the EITC. You can do this by using the official
Internal Revenue Service (IRS) Form W-2 with the EITC
notice on the back of Copy B or a substitute Form W-2
with the same statement. You must give your employee
Notice 797, Possible Federal Tax Refund Due to the
Earned Income Credit (EIC), or your own statement that
contains the same wording if (a) you use a substitute Form
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W-2 that does not contain the EITC notice, (b) you are not
required to furnish Form W-2, or (c) you do not furnish a
timely Form W-2 to your employee. For more information,
see section 10 in Pub. 15 (Circular E), Employer’s Tax
Guide.
Electronic statements for employees. Furnishing
Copies B, C, and 2 of Forms W-2 to your employees
electronically may save you time and effort. See
Furnishing Form W-2 to employees electronically in Pub.
15-A, Employer’s Supplemental Tax Guide, for additional
information.
In general, if you furnished statements to your
employees electronically for the original Form W-2, you
must furnish the Form W-2c correcting such form
electronically. See Regulations section 31.6051-1(j)(5)(iii)
for more information about electronic furnishing of Forms
W-2c.
E-filing. Use the following rules to determine whether you
must e-file your Forms W-2 or W-2c. If you are required to
e-file but fail to do so, you may incur a penalty.
Requirement to e-file Forms W-2. You must e-file
Forms W-2, W-2AS, W-2GU, and W-2VI (collectively
Forms W-2), but not Form W-2CM, if you are required to
file at least 10 information returns. To determine whether
you must file Forms W-2 electronically, add together the
number of information returns (see the list below) and the
number of Forms W-2 you must file in a calendar year. If
the total is at least 10 returns, you must e-file them all. If
you need to issue an additional Form(s) W-2 to report
more than four coded items in box 12, the additional
Form(s) W-2 is included in the number of information
returns for the purpose of determining whether you must
e-file.
The following information return forms must be added
together for this purpose: Form 1042-S, the Form 1094
series, Form 1095-B, Form 1095-C, Form 1097-BTC,
Form 1098, Form 1098-C, Form 1098-E, Form 1098-Q,
Form 1098-T, the Form 1099 series, Form 3921, Form
3922, the Form 5498 series, Form 8027, Form W-2G, and
Form 499R-2/W-2PR.
Corrected information returns are treated separately
and are not included in calculating the number of
information returns described above.
Requirement to e-file Forms W-2c. You must e-file
Forms W-2c to correct originally filed Forms W-2, W-2AS,
W-2GU, and W-2VI (collectively Forms W-2), but not Form
W-2CM, depending on how the original Forms W-2 were
correctly filed. If you were required to e-file the original
Form W-2, you must e-file any Form W-2c correcting that
form. If the original Form W-2 was permitted to be filed on
paper and you filed on paper, then you must file on paper
any Form W-2c correcting that form.
The SSA encourages all employers to e-file. E-filing
can save you time and effort and helps ensure accuracy.
The SSA’s BSO website makes e-filing easy by providing
two ways to submit your Form(s) W-2 or W-2c Copy A and
Forms W-3 or W-3c information.
• If you need to file 50 or fewer Forms W-2 or 25 or fewer
Forms W-2c at a time, you can use BSO to create them
online. BSO guides you through the process of creating
Form(s) W-2 or W-2c, saving and printing them, and
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submitting them to the SSA when you are ready. You do
not have to wait until you have submitted Form(s) W-2 or
W-2c to the SSA before printing copies for your
employees. BSO generates Form W-3 or W-3c
automatically based on your Form(s) W-2 or W-2c.
• If you need to file more than 50 Forms W-2 or more than
25 Forms W-2c, BSO’s “file upload” feature might be the
best e-filing method for your business or organization. To
obtain file format specifications, visit the SSA’s website at
SSA.gov/employer/EFW2&EFW2C.htm, and select the
appropriate document. This information is also available
by calling the SSA’s Employer Reporting Service Center at
800-772-6270 (toll free).
Caution: If you e-file, do not file the same returns
using paper forms.
For more information about e-filing Forms W-2 or W-2c
and a link to the BSO website, visit the SSA’s Employer
W-2 Filing Instructions & Information website at SSA.gov/
employer.
In a few situations, reporting instructions vary
depending on the filing method you choose. For example,
you can include every type of box 12 amount in one
employee wage record if you upload an electronic file. If
you file on paper or create Forms W-2 online, you can
include only four box 12 amounts per Form W-2. See the
TIP for Box 12—Codes under Specific Instructions for
Form W-2.
Waiver from e-filing. If you are required to e-file, you
can request a waiver from this requirement by filing Form
8508, Application for a Waiver from Electronic Filing of
Information Returns. Submit Form 8508 to the IRS at least
45 days before the due date of Form W-2, or 45 days
before you file your first Form W-2c. See Form 8508 for
information about filing this form.
Form 944. Use the “944” checkbox in box b of Form W-3
or Form W-3SS if you filed Form 944, Employer’s
ANNUAL Federal Tax Return. Also use the “944”
checkbox if you filed Formulario 944 (sp), the
Spanish-language version of Form 944.
Forms W-2 for U.S. territories. In these instructions,
reference to Forms W-2 and W-3 includes Forms W-2AS,
W-2CM, W-2GU, W-2VI, and W-3SS, unless otherwise
noted. These instructions are not applicable to wage and
tax statements for Puerto Rico. Form W-2AS is used to
report American Samoa wages paid by American Samoa
employers, Form W-2CM is used to report the
Commonwealth of the Northern Mariana Islands (CNMI)
wages paid by CNMI employers, Form W-2GU is used to
report Guam wages paid by Guam employers, and Form
W-2VI is used to report U.S. Virgin Islands (USVI) wages
paid by USVI employers. Do not use these forms to report
wages subject to U.S. income tax withholding. Instead,
use Form W-2 to show U.S. income tax withheld. For
employment-related information for employers with
territory employees, see Pub. 15 (Circular E).
Military Spouses Residency Relief Act (MSRRA). You
may be required to report wages and taxes on a form
different from the form you generally use if an employee
claims residence or domicile under MSRRA in a different
jurisdiction in one of the 50 states, the District of
Columbia, American Samoa, the Commonwealth of the
General Instructions for Forms W-2 and W-3 (2026)
Northern Mariana Islands, Guam, Puerto Rico, or the U.S.
Virgin Islands.
Under MSRRA, the spouse of an active duty
servicemember (civilian spouse) may keep their prior
residence or domicile for tax purposes (tax residence)
when accompanying the servicemember spouse, who is
relocating under military orders, to a new military duty
station in one of the 50 states, the District of Columbia, or
a U.S. territory.
For example, if a civilian spouse is working in Guam but
properly claims tax residence in one of the 50 states
under MSRRA, their income from services would not be
taxable income for Guam tax purposes. Federal income
taxes should be withheld and remitted to the IRS. State
and local income taxes may need to be withheld and
remitted to state and local tax authorities. You should
consult with state, local, or U.S. territory tax authorities
regarding your withholding obligations under MSRRA.
However, for any tax year of the marriage, the
servicemember and the civilian spouse may elect to use
the residence of the servicemember, the residence of the
spouse, or the permanent duty station of the
servicemember for purposes of taxation, regardless of the
date on which the marriage of the spouse and the
servicemember occurred.
In the previous example, the spouse would be allowed
to elect to use the same residence as, or the permanent
duty station of, the servicemember.
Nonqualified deferred compensation plans. You are
not required to complete box 12 with code Y (Deferrals
under a section 409A nonqualified deferred compensation
plan). Section 409A provides that all amounts deferred
under a nonqualified deferred compensation (NQDC) plan
for all tax years are includible in gross income unless
certain requirements are satisfied. See Nonqualified
deferred compensation plans under Special Reporting
Situations for Form W-2 and the Nonqualified Deferred
Compensation Reporting Example Chart.
Reporting the cost of group health insurance coverage. You must report the cost of employer-sponsored
health coverage in box 12 using code DD. However,
transitional relief applies to certain employers and certain
types of plans. For more information, see Box 12—Codes
for Code DD—Cost of employer-sponsored health
coverage.
Severance payments. Severance payments are wages
subject to social security and Medicare taxes. As noted in
section 15 of Pub. 15 (Circular E), severance payments
are also subject to income tax withholding and FUTA tax.
Substitute forms. You may use an acceptable substitute
form instead of an official IRS form.
Form W-2. If you are not using the official IRS form to
furnish Form W-2 to employees or to file with the SSA, you
may use an acceptable substitute form that complies with
the rules in Pub. 1141, General Rules and Specifications
for Substitute Forms W-2 and W-3. Pub. 1141 is a revenue
procedure that explains the requirements for format and
content of substitute Forms W-2 and W-3. Your substitute
forms must comply with the requirements in Pub. 1141.
General Instructions for Forms W-2 and W-3 (2026)
Pub. 1141 prohibits advertising on Form W-2 and
envelopes containing Form W-2. You must not include
advertising on any copy of Form W-2, including coupons
providing discounts on tax preparation services attached
to the employee copies, or on an envelope containing any
copy of Form W-2. See Pub. 1141 for further information.
Form W-2c. If you are not using the official IRS form to
furnish Form W-2c to employees or to file with the SSA,
you may use an acceptable substitute form that complies
with the rules in Pub. 1223, General Rules and
Specifications for Substitute Forms W-2c and W-3c. Pub.
1223 is a revenue procedure that explains the
requirements for format and content of substitute Forms
W-2c and W-3c. Your substitute forms must comply with
the requirements in Pub. 1223.
Pub. 1223 prohibits advertising on Form W-2c and
envelopes containing Form W-2c. You must not include
advertising on any copy of Form W-2c, including coupons
providing discounts on tax preparation services attached
to the employee copies, or on an envelope containing any
copy of Form W-2c. See Pub. 1223 for further information.
Need Help?
Help with e-filing. If you have questions about how to
register or use BSO, call 800-772-6270 (toll free) to speak
with an employer reporting technician at the SSA. The
hours of operation are Monday through Friday from 7:00
a.m. to 5:30 p.m. Eastern time. If you experience problems
using any of the services within BSO, call 888-772-2970
(toll free) to speak with a systems operator in technical
support at the SSA. To speak with the SSA’s Employer
Services Liaison Officer (ESLO) for the U.S. Virgin
Islands, call 212-264-3455 (not a toll-free number). For
Guam, the Commonwealth of the Northern Mariana
Islands, or American Samoa, call 510-970-8247 (not a
toll-free number). For all other employers, contact the
ESLO that services your region. For a complete telephone
listing, visit the SSA’s Employer W-2 Filing Instructions &
Information website at SSA.gov/employer/
wage_reporting_specialists.htm.
Information reporting customer service site. The IRS
operates a centralized customer service site to answer
questions about reporting on Forms W-2, W-3, 1099, and
other information returns. If you have questions about
reporting on these forms, call the Technical Services
Operation (TSO) toll free at 866-455-7438 or
304-263-8700 (not toll free). Deaf or hard-of-hearing
customers may call any of our toll-free numbers using their
choice of relay service.
Employment tax information. Detailed employment tax
information is given in:
• Pub. 15 (Circular E), Employer’s Tax Guide;
• Pub. 15-A, Employer’s Supplemental Tax Guide;
• Pub. 15-B, Employer’s Tax Guide to Fringe Benefits;
and
• Pub. 15-T, Federal Income Tax Withholding Methods.
You can also call the IRS with your employment tax
questions at 800-829-4933 or go to IRS.gov/
EmploymentTaxes.
5
How To Get Forms and Publications
Internet. You can access IRS.gov 24 hours a day, 7 days
a week, to:
• Download, view, and order tax forms, instructions, and
publications;
• Access commercial tax preparation and e-file services;
• Research your tax questions online;
• See answers to frequently asked tax questions;
• Search publications online by topic or keyword;
• View Internal Revenue Bulletins published in the last
few years; and
• Sign up to receive local and national tax news by email.
You can order forms, instructions, and publications at
IRS.gov/OrderForms. For any other tax information, go to
IRS.gov/Help/Tax-Law-Questions.
Caution: Do not print Copy A of Forms W-2, W-3, W-2c,
or W-3c from IRS.gov and then file them with the SSA.
The SSA accepts only e-filed reports and the official
red-ink versions (or approved substitute versions) of these
forms. For more information about acceptable substitute
versions, see Substitute forms. For information about
e-filing, see E-filing.
Common Errors on Forms W-2
Forms W-2 provide information to your employees, the
SSA, the IRS, and state and local governments. Avoid
making the following errors, which cause processing
delays.
Do not do the following.
• Download Copy A of Forms W-2, W-2AS, W-2GU,
W-2VI, and W-3SS; or Form W-3 from IRS.gov and file
with the SSA.
• Omit the decimal point and cents from entries.
• Make entries using ink that is too light. Use only black
ink.
• Make entries that are too small or too large. Use
12-point Courier font, if possible.
• Add dollar signs to the money-amount boxes. They
have been removed from Copy A and are not required.
• Inappropriately check the “Retirement plan” checkbox in
box 13. See Retirement plan.
• Misformat the employee’s name in box e. Enter the
employee’s first name and middle initial in the first box,
their surname in the second box, and their suffix (such as
“Jr.”) in the third box (optional).
• Enter the incorrect employer identification number (EIN)
or the employee’s SSN for the EIN.
• Cut, fold, or staple Copy A paper forms mailed to the
SSA.
• Mail any other copy other than Copy A of Form W-2 to
the SSA.
General Instructions for Forms
W-2 and W-3
Who must file Form W-2. You must file Form(s) W-2 if
you have one or more employees to whom you made
payments (including noncash payments) for the
employees’ services in your trade or business during
2026.
6
Complete and file Form W-2 for each employee for
whom any of the following applies (even if the employee is
related to you).
• You withheld any income, social security, or Medicare
tax from wages regardless of the amount of wages.
• You would have had to withhold income tax if the
employee had claimed no more than one withholding
allowance (for 2019 or earlier Forms W-4) or had not
claimed exemption from withholding on Form W-4.
• You paid $2,000 or more in wages even if you did not
withhold any income, social security, or Medicare tax.
Only in very limited situations will you not have to file
Form W-2. This may occur if you were not required to
withhold any income tax, social security tax, or Medicare
tax and you paid the employee less than $2,000, such as
for certain election workers and certain foreign agricultural
workers. See Election workers and Foreign agricultural
workers, later.
Unless otherwise noted, references to Medicare tax
include Additional Medicare Tax.
If you are required to e-file Forms W-2 or want to take
advantage of the benefits of e-filing, see E-filing.
Who must file Form W-3. Anyone required to file Form
W-2 must file Form W-3 to transmit Copy A of Forms W-2.
Make a copy of Form W-3 and a copy of each Form W-2
Copy A (For SSA) to keep for your records for at least 4
years. Be sure to use Form W-3 for the correct year. If you
are filing Forms W-2 electronically, also see E-filing.
Household employers. Even employers with only one
household employee must file Form W-3 to transmit Copy
A of Form W-2. On Form W-3, check the “Hshld. emp.”
checkbox in box b. For more information, see Schedule H
(Form 1040), Household Employment Taxes, and its
separate instructions. You must have an employer
identification number (EIN). See Box b—Employer
identification number (EIN).
Who may sign Form W-3. A transmitter or sender
(including a service bureau, reporting agent, paying agent,
or disbursing agent) may sign Form W-3 (or use its PIN to
e-file) for the employer or payer only if the sender satisfies
both of the following.
• It is authorized to sign by an agency agreement
(whether oral, written, or implied) that is valid under state
law.
• It writes “For (name of payer)” next to the signature
(paper Form W-3 only).
Caution: Use of a reporting agent or other third-party
payroll service provider does not relieve an employer of
the responsibility to ensure that Forms W-2 are furnished
to employees and that Forms W-2 and W-3 are filed with
the SSA, correctly and on time. See Penalties for more
information.
Be sure that the payer’s name and EIN on Forms W-2
and W-3 are the same as those used on the Form 941,
Employer’s QUARTERLY Federal Tax Return; Form 943,
Employer’s Annual Federal Tax Return for Agricultural
Employees; Form 944, Employer’s ANNUAL Federal Tax
Return; Form CT-1, Employer’s Annual Railroad
Retirement Tax Return; or Schedule H (Form 1040) filed
by or for the payer.
General Instructions for Forms W-2 and W-3 (2026)
When to file. Mail or electronically file Copy A of Form(s)
W-2 and Form W-3 with the SSA by February 1, 2027. You
may owe a penalty for each Form W-2 that you file late.
See Penalties. If you terminate your business, see
Terminating a business.
Extension of time to file Forms W-2 with the SSA.
You may request only one extension of time to file Form
W-2 with the SSA by submitting a complete application on
Form 8809, Application for Extension of Time To File
Information Returns. When completing the Form 8809,
indicate that at least one of the criteria on the form and
instructions for granting an extension applies. You must
sign the application under penalties of perjury. Send the
application to the address shown on Form 8809. You must
request the extension before the due date of Forms W-2. If
the IRS grants your request for extension, you will have an
additional 30 days to file. The IRS will grant extensions to
file Forms W-2 only in limited cases for extraordinary
circumstances or catastrophe, such as a natural disaster
or fire destroying the books and records needed for filing
the forms. No additional extension of time to file will be
allowed. See Form 8809 for details.
Caution: Even if you request and are granted an
extension of time to file Forms W-2, you must still furnish
Forms W-2 to your employees by February 1, 2027. But
see Extension of time to furnish Forms W-2 to employees.
Where to file paper Forms W-2 and W-3. File Copy A
of Form(s) W-2 with Form W-3 at the following address.
Social Security Administration
Direct Operations Center
Wilkes-Barre, PA 18769-0001
Tip: If you use “Certified Mail” to file, change the ZIP code
to “18769-0002.” If you use an IRS-approved private
delivery service, add “Attn: W-2 Process, 1150 E.
Mountain Dr.” to the address and change the ZIP code to
“18702-7997.” Go to IRS.gov/PDS for a list of
IRS-approved private delivery services.
Caution: Do not send cash, checks, money orders,
or other forms of payment with the Forms W-2 and
W-3 that you submit to the SSA. Employment tax forms
(for example, Form 941 or Form 943), remittances, and
Forms 1099 must be sent to the IRS.
Copy 1. Send Copy 1 of Form W-2, if required, to your
state, city, or local tax department. For more information
concerning Copy 1 (including how to complete boxes 15
through 20), contact your state, city, or local tax
department.
American Samoa. File Copy 1 of Form W-3SS and
Forms W-2AS at the following address.
American Samoa Department of Treasury
Tax Office
Executive Office Building
Pago Pago, AS 96799
Guam. File Copy 1 of Form W-3SS and Forms W-2GU
at the following address.
General Instructions for Forms W-2 and W-3 (2026)
Guam Department of Revenue and Taxation
P.O. Box 23607
Barrigada, GU 96921
For additional information about Form W-2GU, see
GuamTax.com.
U.S. Virgin Islands. File Copy 1 of Form W-3SS and
Forms W-2VI at the following address.
Virgin Islands Bureau of Internal Revenue
6115 Estate Smith Bay
Suite 225
St. Thomas, VI 00802
For additional information about Form W-2VI, see
BIR.VI.gov.
Commonwealth of the Northern Mariana Islands.
File Form OS-3710 and Copy 1 of Forms W-2CM at the
following address.
Division of Revenue and Taxation
Commonwealth of the Northern Mariana Islands
P.O. Box 5234 CHRB
Saipan, MP 96950
Forms OS-3710 and W-2CM are not IRS forms. For
additional information about Form W-2CM, see
Finance.gov.mp/forms.php.
Shipping and mailing. If you file more than one type of
employment tax form, group Forms W-2 of the same type
with a separate Form W-3 for each type, and send them in
separate groups. See the specific instructions for Box
b—Kind of Payer and Box b—Kind of Employer in Specific
Instructions for Form W-3.
Prepare and file Forms W-2 either alphabetically by
employees’ last names or numerically by employees’
social security numbers. Do not staple or tape Form W-3
to the related Forms W-2 or Forms W-2 to each other.
These forms are machine read. Staple holes or tears
interfere with machine reading. Also do not fold Forms
W-2 and W-3. Send the forms to the SSA in a flat mailing.
Furnishing Copies B, C, and 2 to employees.
Generally, you must furnish Copies B, C, and 2 of Form
W-2 to your employees by February 1, 2027. You will meet
the “furnish” requirement if the form is properly addressed
and mailed on or before the due date.
If employment ends before December 31, 2026, you
may furnish copies to the employee at any time after
employment ends, but no later than February 1, 2027. If
an employee asks for Form W-2, give them the completed
copies within 30 days of the request or within 30 days of
the final wage payment, whichever is later. However, if you
terminate your business, see Terminating a business.
You may furnish Forms W-2 to employees on IRS
official forms or on acceptable substitute forms. See
Substitute forms. Be sure the Forms W-2 you provide to
employees are clear and legible and comply with the
requirements in Pub. 1141.
Forms W-2 and envelopes containing Forms W-2 that
include logos, slogans, and advertisements (including
advertisements for tax preparation software) may be
7
considered as suspicious or altered Forms W-2 (also
known as “questionable Forms W-2”). An employee may
not recognize the importance (or legitimacy) of the
employee copy for tax reporting purposes due to the use
of logos, slogans, and advertisements. Therefore, the IRS
has determined that logos, slogans, and advertising will
not be allowed on Forms W-3, Copy A of Forms W-2, or
any employee copies reporting wages, or on an envelope
or enclosed in an envelope containing any of those
documents. Limited exceptions on this prohibition exist
with respect to employee copies. See Pub. 1141 for more
information.
Extension of time to furnish Forms W-2 to
employees. You may request an extension of time to
furnish Forms W-2 to employees by submitting a
completed, signed Form 15397, Application for Extension
of Time to Furnish Recipient Statements.
Ensure Form 15397 is submitted on or before the due
date for furnishing Forms W-2 to employees. See Form
15397, Application for Extension of Time to Furnish
Recipient Statements, for more information.
Caution: Requests for an extension of time to furnish
Forms W-2 to employees are not automatically granted. If
approved, an extension will generally be granted for no
more than 15 days from the due date, unless the need for
up to a total of 30 days is clearly shown.
Undeliverable Forms W-2. Keep for 4 years any
employee copies of Forms W-2 that you tried to but could
not deliver. However, if the undelivered Form W-2 can be
produced electronically through April 15th of the fourth
year after the year at issue, you do not need to keep
undeliverable employee copies. Do not send
undeliverable employee copies of Forms W-2 to the Social
Security Administration (SSA).
Taxpayer identification numbers (TINs). Employers
use an employer identification number (EIN)
(XX-XXXXXXX). Employees use a social security number
(SSN) (XXX-XX-XXXX). When you list a number, separate
the nine digits properly to show the kind of number.
Do not accept an IRS individual taxpayer identification
number (ITIN) in place of an SSN for employee
identification or for Form W-2 reporting. An ITIN is
available only to resident and nonresident aliens who are
not eligible for U.S. employment and need identification for
other tax purposes. You can identify an ITIN because it is
a nine-digit number formatted like an SSN beginning with
the number “9” and with a number in one of the following
ranges in the fourth and fifth digits: 50–65, 70–88, 90–92,
and 94–99 (for example, 9NN-70-NNNN). Do not
auto-populate an ITIN into box a, Employee’s social
security number, on Form W-2. See section 4 of Pub. 15
(Circular E).
Caution: An individual with an ITIN who later becomes
eligible to work in the United States must obtain an SSN
from the Social Security Administration.
The IRS uses SSNs to check the payments that you
report against the amounts shown on employees’ tax
returns. The SSA uses SSNs to record employees’
earnings for future social security and Medicare benefits.
When you prepare Form W-2, be sure to show the correct
8
SSN for each employee. You may truncate the employee’s
SSN on employee copies of Forms W-2. Do not truncate
an employee’s SSN on Copy A of Forms W-2 filed with
SSA. Go to Social security numbers, earlier, for more
information. Also see Regulations section 31.6051-1(a)(1)
(i)(B) and 31.6051-2(a). For information about verifying
SSNs, see section 4 of Pub. 15 (Circular E) or visit the
SSA’s Employer W-2 Filing Instructions & Information
website at SSA.gov/employer.
Caution: Form W-2 e-filed with the SSA must contain the
employer’s complete EIN and the complete SSN of the
employee. Do not truncate EINs or SSNs on Copy A.
Special Reporting Situations for Form
W-2
Adoption benefits. Amounts paid or expenses incurred
by an employer for qualified adoption expenses under an
adoption assistance program are not subject to federal
income tax withholding and are not reportable in box 1.
However, these amounts (including adoption benefits paid
from a section 125 (cafeteria) plan, but not including
adoption benefits forfeited from a cafeteria plan) are
subject to social security, Medicare, and railroad
retirement taxes and must be reported in boxes 3 and 5.
(Use box 14a if railroad retirement taxes apply.) Also, the
total amount, including any amount in excess of the
$17,670 exclusion, must be reported in box 12 with code
T. For more information on reporting adoption benefits in
box 12, see Code T—Adoption benefits, later.
For more information on adoption benefits, see Notice
97-9, 1997-1 C.B. 365, which is on page 35 of Internal
Revenue Bulletin 1997-2 at IRS.gov/pub/irs-irbs/
irb97-02.pdf. Advise your employees to see the
Instructions for Form 8839, Qualified Adoption Expenses.
Agent reporting. An agent who has an approved Form
2678, Employer/Payer Appointment of Agent, should enter
the following in box c of Form W-2.
(Name of agent)
Agent for (name of employer)
Address of agent
Each Form W-2 should reflect the EIN of the agent in
box b. An agent files one Form W-3 for all of the Forms
W-2 and enters its own information in boxes e, f, and g of
Form W-3 as it appears on the agent’s related
employment tax returns (for example, Form 941). Enter
the client-employer’s EIN in box h of Form W-3 if the
Forms W-2 relate to only one employer (other than the
agent); if not, leave box h blank.
If the agent (a) is acting as an agent for two or more
employers or is an employer and is acting as an agent for
another employer, and (b) pays social security wages to
an individual on behalf of more than one employer, the
agent should file separate Forms W-2 for the affected
employee reflecting the wages paid by each employer.
See Rev. Proc. 2013-39, 2013-52 I.R.B. 830, available
at IRS.gov/irb/2013-52_IRB#RP-2013-39 and the Form
2678 instructions for procedures to be followed in applying
to be an agent.
General Instructions for Forms W-2 and W-3 (2026)
Tip: Generally, an agent is not responsible for refunding
excess social security or railroad retirement (RRTA) tax
withheld from employees. If an employee worked for more
than one employer during 2026 and had more than
$11,439 in social security and/or Tier 1 RRTA tax
withheld, they should claim the excess on the appropriate
line of Form 1040, 1040-SR, or 1040-NR. If an employee
had more than $6,717.90 in Tier 2 RRTA tax withheld from
more than one employer, the employee should claim a
refund on Form 843, Claim for Refund and Request for
Abatement.
Archer MSA. An employer’s contribution to an
employee’s Archer MSA is not subject to federal income
tax withholding or social security, Medicare, or railroad
retirement taxes if it is reasonable to believe at the time of
the payment that the contribution will be excludable from
the employee’s income. However, if it is not reasonable to
believe at the time of payment that the contribution will be
excludable from the employee’s income, employer
contributions are subject to income tax withholding and
social security and Medicare taxes (or railroad retirement
taxes, if applicable) and must be reported in boxes 1, 3,
and 5. (Use box 14a if railroad retirement taxes apply.)
You must report all employer contributions to an Archer
MSA in box 12 of Form W-2 with code R. Employer
contributions to an Archer MSA that are not excludable
from the income of the employee must also be reported in
boxes 1, 3, and 5 (box 14a if railroad retirement taxes
apply).
An employee’s contributions to an Archer MSA are
includible in income as wages and are subject to federal
income tax withholding and social security and Medicare
taxes (or railroad retirement taxes, if applicable).
Employee contributions are deductible, within limits, on
the employee’s Form 1040 or 1040-SR.
For more information, see Pub. 969, Health Savings
Accounts and Other Tax-Favored Health Plans.
Clergy and religious workers. For certain members of
the clergy and religious workers who are not subject to
social security and Medicare taxes as employees, boxes 3
and 5 of Form W-2 should be left blank. You may include a
minister’s parsonage and/or utilities allowance in box 14a.
For information on the rules that apply to ministers and
certain other religious workers, see Pub. 517, Social
Security and Other Information for Members of the Clergy
and Religious Workers, and section 4 in Pub. 15-A.
Deceased employee’s wages. If an employee dies
during the year, you must report the accrued wages,
vacation pay, and other compensation paid after the date
of death. Also report wages that were available to the
employee while they were alive, regardless of whether
they were actually in the possession of the employee, as
well as any other regular wage payment, even if you may
have to reissue the payment in the name of the estate or
beneficiary.
If you made the payment after the employee’s death but
in the same year the employee died, you must withhold
social security and Medicare taxes on the payment and
report the payment on the employee’s Form W-2 only as
social security and Medicare wages to ensure proper
General Instructions for Forms W-2 and W-3 (2026)
social security and Medicare credit is received. On the
employee’s Form W-2, show the payment as social
security wages (box 3) and Medicare wages and tips
(box 5) and the social security and Medicare taxes
withheld in boxes 4 and 6. Do not show the payment in
box 1.
If you made the payment after the year of death, do not
report it on Form W-2, and do not withhold social security
and Medicare taxes.
Whether the payment is made in the year of death or
after the year of death, you must also report it in box 3 of
Form 1099-MISC, Miscellaneous Information, for the
payment to the estate or beneficiary. Use the name and
taxpayer identification number (TIN) of the payment
recipient on Form 1099-MISC. However, if the payment is
a reissuance of wages that were constructively received
by the deceased individual while they were still alive, do
not report it on Form 1099-MISC.
Example. Before Sam’s death on June 15, 2026, Sam
was employed and received $10,000 in wages on which
federal income tax of $1,500 was withheld. When Sam
died, Sam’s employer owed Sam $2,000 in wages and
$1,000 in accrued vacation pay. The total of $3,000 (less
the social security and Medicare taxes withheld) was paid
to Sam’s estate on July 20, 2026. Because Sam’s
employer made the payment during the year of death, the
employer must withhold social security and Medicare
taxes on the $3,000 payment and must complete Form
W-2 as follows.
• Box a—Sam’s SSN.
• Box e—Sam’s name.
• Box f—Sam’s address.
• Box 1—10000.00 (does not include the $3,000 accrued
wages and vacation pay).
• Box 2—1500.00.
• Box 3—13000.00 (includes the $3,000 accrued wages
and vacation pay).
• Box 4—806.00 (6.2% of the amount in box 3).
• Box 5—13000.00 (includes the $3,000 accrued wages
and vacation pay).
• Box 6—188.50 (1.45% of the amount in box 5).
Caution: Sam’s employer must also complete Form
1099-MISC as follows.
• Boxes for recipient’s name, address, and TIN—the
estate’s or beneficiary’s name, address, and TIN.
• Box 3: 3000.00 (Even though amounts were withheld for
social security and Medicare taxes, the gross amount is
reported here.)
If Sam’s employer made the payment after the year of
death, the $3,000 would not be subject to social security
and Medicare taxes and would not be shown on Form
W-2. However, the employer would still file Form
1099-MISC.
De minimis financial incentives. De minimis financial
incentives (not paid for with or derived from plan assets)
may be provided to employees who elect to have the
employer make contributions under a 401(k) cash or
deferred arrangement or elect to have the employer make
contributions pursuant to a salary reduction agreement
under a 403(b) plan.
9
A de minimis financial incentive cannot exceed $250 in
value for an employee and it may only be offered to
employees who do not already have in effect an election
to have such salary deferral or salary reduction
contributions made on their behalf.
If an employer provides a de minimis financial incentive
to an employee, that incentive is included in the
employee’s wages and subject to applicable withholding
requirements unless an exception applies. See Q&A D-1
through D-6 of Notice 2024-2, 2024-2 I.R.B. 316, at
IRS.gov/irb/2024-02_IRB#NOT-2024-2, for additional
guidance on de minimis financial incentives.
Designated Roth contributions. Under section 402A, a
participant in a section 401(k) plan, under a 403(b) salary
reduction agreement, or in a governmental 457(b) plan
that includes a qualified Roth contribution program, may
elect to make designated Roth contributions to the plan or
program in lieu of elective deferrals.
Employee contributions to a pension-linked emergency
savings account (a special designated Roth account) in a
defined contribution plan are also designated Roth
contributions. See section 402A(e) for more information
about pension-linked emergency savings accounts.
Designated Roth contributions are subject to federal
income tax withholding and social security and Medicare
taxes (and railroad retirement taxes, if applicable) and
must be reported in boxes 1, 3, and 5. (Use box 14a if
railroad retirement taxes apply.)
Section 402A requires separate reporting of the yearly
designated Roth contributions. Designated Roth
contributions to 401(k) plans will be reported using code
AA in box 12; designated Roth contributions under 403(b)
salary reduction agreements will be reported using code
BB in box 12; and designated Roth contributions under a
governmental section 457(b) plan will be reported using
code EE in box 12. Also include designated Roth
contributions to a pension-linked emergency savings
account in box 12. For reporting instructions, see the
box 12 instructions for Code AA—Designated Roth
contributions under a section 401(k) plan, Code
BB—Designated Roth contributions under a section
403(b) plan, and Code EE—Designated Roth
contributions under a governmental section 457(b) plan.
A participant in a plan that includes a qualified Roth
contribution program may also be permitted to designate
certain nonelective contributions or matching
contributions as Roth contributions. However, the
reporting instructions that apply to designated Roth
contributions (which are made in lieu of elective deferrals)
do not apply to designated Roth nonelective contributions
or designated Roth matching contributions. Instead, those
contributions must be reported on Form 1099-R. See Q&A
L-9 of Notice 2024-2, 2024-2 I.R.B. 316, available at
IRS.gov/irb/2024-02_IRB#NOT-2024-2.
Educational assistance programs. Employer-provided
educational assistance up to a maximum of $5,250 is
excludable from an employee’s wages only if assistance is
provided under an educational assistance program under
section 127. See Pub. 970, Tax Benefits for Education,
and section 2 of Pub. 15-B for more information. Also see
Box 1—Wages, tips, other compensation.
10
Election workers. Report on Form W-2 payments of
$2,000 or more to election workers for services performed
in state, county, and municipal elections. File Form W-2 for
payments of less than $2,000 paid to election workers if
social security and Medicare taxes were withheld under a
section 218 (Social Security Act) agreement. Do not
report election worker payments on Form 1099-MISC.
If the election worker is employed in another capacity
with the same government entity, see Rev. Rul. 2000-6,
which is on page 512 of Internal Revenue Bulletin 2000-6
at IRS.gov/pub/irs-irbs/irb00-06.pdf.
Employee business expense reimbursements.
Reimbursements to employees for business expenses
must be reported as follows.
• Generally, payments made under an accountable plan
are excluded from the employee’s gross income and are
not reported on Form W-2. However, if you pay a per diem
or mileage allowance and the amount paid for
substantiated miles or days traveled exceeds the amount
treated as substantiated under IRS rules, you must report
as wages on Form W-2 the amount in excess of the
amount treated as substantiated. The excess amount is
subject to income tax withholding and social security and
Medicare taxes (or railroad retirement taxes, if applicable).
Report the amount treated as substantiated (that is, the
nontaxable portion) in box 12 using code L. See the
box 12 instructions for Code L—Substantiated employee
business expense reimbursements. (Use box 14a if
railroad retirement taxes apply.)
• Payments made under a nonaccountable plan are
reported as wages on Form W-2 and are subject to federal
income tax withholding and social security and Medicare
taxes (or railroad retirement taxes, if applicable). (Use
box 14a if railroad retirement taxes apply.)
For more information on accountable plans,
nonaccountable plans, amounts treated as substantiated
under a per diem or mileage allowance, the standard
mileage rate, the per diem substantiation method, and the
high-low substantiation method, see Pub. 463, Travel, Gift,
and Car Expenses; and section 5 of Pub. 15 (Circular E).
Employee’s social security and Medicare taxes (or
railroad retirement taxes, if applicable) paid by employer. If you paid your employee’s share of social
security and Medicare taxes rather than deducting them
from the employee’s wages, you must include these
payments as wages subject to federal (or American
Samoa, CNMI, Guam, or U.S. Virgin Islands) income tax
withholding and social security, Medicare, and federal
unemployment (FUTA) taxes. If you paid your employee’s
share of railroad retirement taxes, you must include these
amounts as compensation subject to railroad retirement
taxes. The amount to include as wages and/or
compensation is determined by using the formula
contained in the discussion of Employee’s Portion of
Taxes Paid by Employer in section 7 of Pub. 15-A and in
Rev. Proc. 83-43, 1983-24 I.R.B. 60.
Caution: This does not apply to household and
agricultural employers. If you pay a household or
agricultural employee’s social security and Medicare
taxes, you must include these payments in the employee’s
wages for income tax withholding purposes. However, the
General Instructions for Forms W-2 and W-3 (2026)
wage increase due to the tax payments is not subject to
social security, Medicare, or FUTA taxes. For information
on completing Forms W-2 and W-3 in this situation, see
the Instructions for Schedule H (Form 1040) and the
discussion of Household and agricultural employers in
section 9 of Pub. 15 (Circular E).
Federal employers in the CNMI. The U.S. Treasury
Department and the CNMI Division of Revenue and
Taxation entered into an agreement under 5 U.S.C.
section 5517 (“5517 agreement”) in December 2006.
Under this agreement, all federal employers (including the
Department of Defense) are required to withhold CNMI
income taxes, rather than federal income taxes, and
deposit the CNMI taxes with the CNMI Treasury for
employees who are subject to CNMI taxes and whose
regular place of federal employment is in the CNMI.
Federal employers are also required to file quarterly and
annual reports with the CNMI Division of Revenue and
Taxation. For questions, contact the CNMI Division of
Revenue and Taxation.
Federal employers may use Form W-2 (rather than
Forms W-2CM or OS-3710) to report income taxes
withheld and paid to CNMI, as well as to report social
security and Medicare taxes. Use the state boxes 15, 16,
and 17 for CNMI income tax reporting. See the
instructions for boxes 15, 16, and 17 under Boxes 15
through 20—State and local income tax information, later.
This rule applies only to income tax reporting. Federal
employers should withhold and report social security and
Medicare taxes for these employees in the same way as
for other federal employees. For more information,
including special rules for Armed Forces members, go to
IRS.gov/5517Agreements.
Foreign agricultural workers. You must report
compensation of $2,000 or more paid in a calendar year
to an H-2A visa agricultural worker for agricultural labor. If
the H-2A visa agricultural worker furnishes a valid
taxpayer identification number, report these payments in
box 1 of Form W-2. If the worker does not furnish a valid
taxpayer identification number, report the payments on
Form 1099-MISC. See Form 1099-MISC next.
On Form W-2, no amount should be reported in box 3
or 5. In most cases, you do not need to withhold federal
income tax from compensation paid to H-2A visa
agricultural workers. Employers should withhold federal
income tax only if the H-2A visa agricultural worker and
the employer agree to withhold. The H-2A visa agricultural
worker must provide a completed Form W-4. If the
employer withholds income tax, the employer must report
the tax withheld in box 2 of Form W-2 and on line 8 of
Form 943. See Pub. 15 (Circular E).
Form 1099-MISC. If the H-2A visa agricultural worker
fails to furnish a taxpayer identification number to the
employer, and the total annual payments made to the
H-2A visa agricultural worker are $2,000 or more, the
employer must begin backup withholding on the payments
made until the H-2A visa agricultural worker furnishes a
valid taxpayer identification number. Employers must
report the compensation paid and any backup withholding
on Forms 1099-MISC and Form 945, Annual Return of
Withheld Federal Income Tax. See the Instructions for
General Instructions for Forms W-2 and W-3 (2026)
Forms 1099-MISC and 1099-NEC and the Instructions for
Form 945.
For more information, go to IRS.gov/H2A.
Fringe benefits. Include all taxable fringe benefits in
box 1 of Form W-2 as wages, tips, and other
compensation and, if applicable, in boxes 3 and 5 as
social security and Medicare wages. Although not
required, you may include the total value of fringe benefits
in box 14a (or on a separate statement). However, if you
provided your employee a vehicle, you must include the
value of any personal use in boxes 1, 3, and 5 of Form
W-2. You must withhold social security and Medicare tax,
but you have the option not to withhold federal income tax
if you notify the employee and include the value of the
benefit in boxes 1, 3, 5, and 14a. See Pub. 15-B for more
information.
Caution: P.L. 119-21, section 70110, does not permit
employees to deduct unreimbursed employee business
expenses for tax years beginning after 2017. If you
included 100% of the vehicle’s annual lease value in the
employee’s income, the employee will not be able to
deduct expenses attributable to the business use of an
employer-provided vehicle.
Golden parachute payments (not applicable to
Forms W-2AS, W-2CM, W-2GU, or W-2VI). Include any
golden parachute payments in boxes 1, 3, and 5 of Form
W-2. Withhold federal income, social security, and
Medicare taxes (or railroad retirement taxes, if applicable)
as usual and report them in boxes 2, 4, and 6,
respectively. (Use box 14a if railroad retirement taxes
apply.) Excess parachute payments are also subject to a
20% excise tax. If the excess payments are considered
wages, withhold the 20% excise tax and include it in box 2
as income tax withheld. Also report the excise tax in
box 12 with code K. For definitions and additional
information, see Regulations section 1.280G-1 and Rev.
Proc. 2003-68, 2003-34 I.R.B. 398, available at
IRS.gov/irb/2003-34_IRB#RP-2003-68.
Government employers. Federal, state, and local
governmental agencies have two options for reporting
their employees’ wages that are subject to only Medicare
tax for part of the year and both social security and
Medicare taxes for part of the year.
The first option (which the SSA prefers) is to file a
single set of Forms W-2 per employee for the entire year,
even if only part of the year’s wages are subject to both
social security and Medicare taxes. Check “941” (or “944”)
in box b of Form W-3 or Form W-3SS. The wages in box 5
of Form W-2 must be equal to or greater than the wages in
box 3 of Form W-2.
The second option is to file one set of Forms W-2 for
wages subject only to Medicare tax and another set for
wages subject to both social security and Medicare taxes.
Use a separate Form W-3 to transmit each set of Forms
W-2. For the Medicare-only Forms W-2, check “Medicare
govt. emp.” in box b of Form W-3. For the Forms W-2
showing wages subject to both social security and
Medicare taxes, check “941” (or “944”) in box b of Form
W-3 or Form W-3SS. The wages in box 5 of Form W-2
11
must be equal to or greater than the wages in box 3 of
Form W-2.
Group-term life insurance. You must include in boxes 1,
3, and 5 (or 14a, if railroad retirement taxes apply) the cost
of group-term life insurance that is more than the cost of
$50,000 of coverage, reduced by the amount the
employee paid toward the insurance. Use Table 2-2 in
Pub. 15-B to determine the cost of the insurance. Also
show the amount in box 12 with code C. For employees,
you must withhold social security and Medicare taxes, but
not federal income tax. For coverage provided to former
employees, the former employees must pay the employee
part of social security and Medicare taxes (or railroad
retirement taxes, if applicable) on the taxable cost of
group-term life insurance over $50,000 on Form 1040 or
1040-SR. You are not required to collect those taxes.
However, you must report the uncollected social security
tax (or railroad retirement taxes, if applicable) with code M
and the uncollected Medicare tax (or RRTA Medicare tax,
if applicable) with code N in box 12 of Form W-2.
However, any uncollected Additional Medicare Tax (on the
cost of group-term life insurance, which, in combination
with other wages, is in excess of $200,000) is not reported
with code N in box 12.
Health flexible spending arrangement (FSA). For plan
year 2026, a cafeteria plan may not allow an employee to
request salary reduction contributions for a health FSA in
excess of $3,400 (as indexed for inflation).
If a cafeteria plan timely complies with the written plan
requirement limiting health FSA salary reduction
contributions, but one or more employees are erroneously
allowed to elect a salary reduction of more than $3,400 for
the plan year, the cafeteria plan will continue to be a
section 125 cafeteria plan for the plan year if:
• The terms of the plan apply uniformly to all participants;
• The error results from a reasonable mistake by the
employer (or the employer’s agent) and is not due to willful
neglect by the employer (or the employer’s agent); and
• Salary reduction contributions in excess of $3,400 are
paid to the employee and reported as wages for income
tax withholding and employment tax purposes on the
employee’s Form W-2 (or Form W-2c) for the employee’s
tax year in which, or with which, ends the cafeteria plan
year in which the correction is made.
Caution: The salary reduction contribution limit of $3,400
does not include any amount (up to $680) carried over
from a previous year.
For more information, see Notice 2013-71, 2013-47
I.R.B. 532, available at IRS.gov/irb/
2013-47_IRB#NOT-2013-71.
Health savings account (HSA). An employer’s
contribution (including an employee’s contributions
through a cafeteria plan) to an employee’s HSA is not
subject to federal income tax withholding or social
security, Medicare, or railroad retirement taxes (or FUTA
tax) if it is reasonable to believe at the time of the payment
that the contribution will be excludable from the
employee’s income. However, if it is not reasonable to
believe at the time of payment that the contribution will be
excludable from the employee’s income, employer
contributions are subject to federal income tax
12
withholding, social security and Medicare taxes (or
railroad retirement taxes, if applicable), and FUTA tax, and
must be reported in boxes 1, 3, and 5 (use box 14a if
railroad retirement taxes apply); and on Form 940,
Employer’s Annual Federal Unemployment (FUTA) Tax
Return.
You must report all employer contributions (including an
employee’s contributions through a cafeteria plan) to an
HSA in box 12 of Form W-2 with code W. Employer
contributions to an HSA that are not excludable from the
income of the employee must also be reported in boxes 1,
3, and 5. (Use box 14a if railroad retirement taxes apply.)
An employee’s contributions to an HSA (unless made
through a cafeteria plan) are includible in income as
wages and are subject to federal income tax withholding
and social security and Medicare taxes (or railroad
retirement taxes, if applicable). Employee contributions
are deductible, within limits, on the employee’s Form 1040
or 1040-SR. For more information about HSAs, see Form
8889, Health Savings Accounts (HSAs), and Pub. 969.
Lost Form W-2—Reissued statement. If an employee
loses a Form W-2, write “REISSUED STATEMENT” on the
new copy and furnish it to the employee. You do not have
to add “REISSUED STATEMENT” on Forms W-2 provided
to employees electronically. Do not send Copy A of the
reissued Form W-2 to the SSA. Employers are not
prohibited (by the Internal Revenue Code) from charging a
fee for the issuance of a duplicate Form W-2.
Military differential pay. Employers paying their
employees while they are on active duty in the U.S.
uniformed services should treat these payments as
wages. Differential wage payments made to an individual
while on active duty for periods scheduled to exceed 30
days are subject to income tax withholding, but are not
subject to social security, Medicare, and unemployment
taxes. Report differential wage payments in box 1 and any
federal income tax withholding in box 2. Differential wage
payments made to an individual while on active duty for 30
days or less are subject to income tax withholding, social
security, Medicare, and unemployment taxes and are
reported in boxes 1, 3, and 5. See Rev. Rul. 2009-11,
2009-18 I.R.B. 896, available at IRS.gov/irb/
2009-18_IRB#RR-2009-11.
Moving expenses. Effective for tax years beginning after
2017, the exclusion for qualified moving expense
reimbursements applies only to members of the U.S.
Armed Forces on active duty who move pursuant to a
military order and incident to a permanent change of
station, or an employee or new appointee of the
intelligence community. All other employees have only
nonqualified moving expenses and expense
reimbursements subject to tax and withholding.
Report qualified moving expenses for members of the
Armed Forces or intelligence community as follows.
• Qualified moving expenses that an employer paid to a
third party on behalf of the employee (for example, to a
moving company), and services that an employer
furnished in kind to an employee, are not reported on
Form W-2.
General Instructions for Forms W-2 and W-3 (2026)
• Qualified moving expense reimbursements paid directly
to an employee by an employer are reported only in
box 12 of Form W-2 with code P.
Nonqualified moving expenses and expense
reimbursements are reported in boxes 1, 3, and 5 (use
box 14a if railroad retirement taxes apply) of Form W-2.
These amounts are subject to federal income tax
withholding and social security and Medicare taxes (or
railroad retirement taxes, if applicable).
Nonqualified deferred compensation plans. Section
409A provides that all amounts deferred under a
nonqualified deferred compensation (NQDC) plan for all
tax years are currently includible in gross income to the
extent not subject to a substantial risk of forfeiture and not
previously included in gross income, unless certain
requirements are met. Generally, section 409A is effective
with respect to amounts deferred in tax years beginning
after December 31, 2004, but deferrals made before that
year may be subject to section 409A under some
circumstances.
It is not necessary to show amounts deferred during the
year under an NQDC plan subject to section 409A. If you
report section 409A deferrals, show the amount in box 12
using code Y. For more information, see Notice 2008-115,
2008-52 I.R.B. 1367, available at IRS.gov/irb/
2008-52_IRB#NOT-2008-115.
Income included under section 409A from an NQDC
plan will be reported in box 1 and in box 12 using code Z.
This income is also subject to an additional tax of 20%
that is reported on Form 1040 or 1040-SR. For more
information on amounts includible in gross income and
reporting requirements, see Notice 2008-115, available at
IRS.gov/irb/2008-52_IRB#NOT-2008-115. For information
on correcting failures to comply with section 409A and
related reporting, see Notice 2008-113, 2008-51 I.R.B.
1305, available at IRS.gov/irb/
2008-51_IRB#NOT-2008-113; Notice 2010-6, 2010-3
I.R.B. 275, available at IRS.gov/irb/
2010-03_IRB#NOT-2010-6; and Notice 2010-80, 2010-51
I.R.B. 853, available at IRS.gov/irb/
2010-51_IRB#NOT-2010-80.
See the Nonqualified Deferred Compensation
Reporting Example Chart.
Qualified equity grants under section 83(i). Report
the amount includible in gross income from qualified
equity grants under section 83(i)(1)(A) for the calendar
year in box 12 using code GG. This amount is wages for
box 1 and you must withhold income tax under section
3401(i) at the rate and manner prescribed in section
3402(t). You must withhold at the maximum rate of tax
without regard to the employee’s Form W-4. Social
security and Medicare taxation of the deferral stock is not
affected by these rules. See Notice 2018-97, 2018-52
I.R.B. 1062, available at IRS.gov/irb/
2018-52_IRB#NOT-2018-97.
Qualified small employer health reimbursement arrangement. Use box 12, code FF, to report the total
amount of permitted benefits under a qualified small
employer health reimbursement arrangement (QSEHRA).
QSEHRAs allow eligible employers to pay or reimburse
medical care expenses of eligible employees after the
General Instructions for Forms W-2 and W-3 (2026)
employees provide proof of coverage. The maximum
reimbursement for an eligible employee under a QSEHRA
for 2026 is $6,450 ($13,100 if it also provides
reimbursements for family members). For more
information about QSEHRAs, see Notice 2017-67,
2017-47 I.R.B. 517, available at IRS.gov/irb/
2017-47_IRB#NOT-2017-67 and Pub. 15-B under
Accident and Health Benefits. For information on
employer reporting requirements, see Code
FF—Permitted benefits under a qualified small employer
health reimbursement, later.
Railroad employers (not applicable to Forms W-2AS,
W-2CM, W-2GU, or W-2VI). Railroad employers must file
Form W-2 to report their employees’ wages and income
tax withholding in boxes 1 and 2. You must file a separate
Form W-3 to transmit the Forms W-2 if you have
employees covered under the Federal Insurance
Contributions Act (FICA) (social security and Medicare)
and the Railroad Retirement Tax Act (RRTA).
For employees covered by RRTA tax. Check the
“CT-1” checkbox on Form W-3, box b, “Kind of Payer,” to
transmit Forms W-2 for employees with box 1 wages and
box 2 tax withholding. Use Form W-2, box 14a, to report
total RRTA compensation, Tier 1, Tier 2, Medicare
(excluding Additional Medicare Tax), and any Additional
Medicare Tax withheld for each employee covered by
RRTA tax. Label them “RRTA compensation,” “Tier 1 tax,”
“Tier 2 tax,” “Medicare tax,” and “Additional Medicare Tax.”
Include tips reported by the employee to the employer in
“RRTA compensation.”
Employers should withhold Tier 1 and Tier 2 RRTA
taxes on all money remuneration that stems from the
employer–employee relationship, including award
payments to employees to compensate for working time
lost due to an on-the-job injury and lump-sum payments
made to unionized employees upon ratification of
collective bargaining agreements.
Employee stock options are not “money remuneration”
subject to the RRTA. Railroad employers should not
withhold Tier 1 and Tier 2 taxes when employees covered
by the RRTA exercise stock options. Employers should still
withhold federal income tax on taxable compensation from
railroad employees exercising their stock options.
For employees covered by social security and
Medicare. Check the “941” checkbox on Form W-3, box
b, “Kind of Payer,” to transmit Forms W-2 with box 1 wages
and box 2 tax withholding for employees covered by social
security and Medicare. Use Form W-2, boxes 3, 4, 5, 6,
and 7, to report each employee’s social security and
Medicare wages and taxes, including Additional Medicare
Tax. These boxes are not to be used to report railroad
retirement compensation and taxes.
Caution: Railroad employers must withhold social
security and Medicare taxes from taxable compensation
of employees covered by social security and Medicare
who are exercising their employee stock options.
Repayments. If an employee repays you for wages
received in error, do not offset the repayments against
current-year wages unless the repayments are for
amounts received in error in the current year. Repayments
made in the current year, but related to a prior year or
13
years, must be repaid in gross, not net, and require
special tax treatment by employees in some cases. You
may advise the employee of the total repayments made
during the current year and the amount (if any) related to
prior years. This information will help the employee
account for such repayments on their federal income tax
return.
If the repayment was for a prior year, you must file Form
W-2c with the SSA to correct only social security and
Medicare wages and taxes, and furnish a copy to the
employee. Do not correct “Wages, tips, other
compensation” in box 1, or “Federal income tax withheld”
in box 2, on Form W-2c. Also do not correct any Additional
Medicare Tax withheld on the repaid wages (reported with
Medicare tax withheld in box 6) on Form W-2c. File the “X”
return that is appropriate for the return on which the wages
or compensation was originally reported (Forms 941-X,
943-X, 944-X, or CT-1 X). Correct the social security and
Medicare wages and taxes for the period during which the
wages or compensation was originally paid. For
information on reporting adjustments to Forms 941, 943,
944, or Form CT-1, see section 13 of Pub. 15 (Circular E)
or the Instructions for Form CT-1 X.
Tip: Tell your employee that the wages paid in error in a
prior year remain taxable to them for that year. This is
because the employee received and had use of those
funds during that year. The employee is not entitled to file
an amended return (Form 1040-X) to recover the income
tax on these wages. For repayments greater than $3,000,
the employee may be entitled to a deduction or credit for
the repaid wages on their Form 1040 or 1040-SR for the
year of repayment. However, the employee is entitled to
file an amended return (Form 1040-X) to recover
Additional Medicare Tax on these wages, if any. Refer your
employee to Repayments in Pub. 525, for additional
information.
Scholarship and fellowship grants. Give a Form W-2
to each recipient of a scholarship or fellowship grant only if
you are reporting amounts includible in income under
section 117(c) (relating to payments for teaching,
research, or other services required as a condition for
receiving the qualified scholarship). Also see Pub. 15-A
and Pub. 970. These payments are subject to federal
income tax withholding. However, their taxability for social
security and Medicare taxes (or railroad retirement taxes,
if applicable) depends on the nature of the employment
and the status of the organization. See Students, scholars,
trainees, teachers, etc., in section 15 of Pub. 15 (Circular
E).
SEP arrangements and SIMPLE IRA plans. An
employee’s salary reduction contributions under a SEP
arrangement to a traditional IRA or under a SIMPLE
(Savings Incentive Match Plan for Employees) IRA plan to
a SIMPLE IRA are not subject to federal income tax
withholding but are subject to social security, Medicare,
and railroad retirement taxes. Do not include an
employee’s contribution in box 1, but do include it in boxes
3 and 5. (Use box 14a if railroad retirement taxes apply.)
An employee’s total contribution must also be included in
box 12 with code D or S.
14
An employer’s matching or nonelective contribution to
an employee’s SIMPLE retirement account is not subject
to federal income tax withholding or social security,
Medicare, or railroad retirement taxes, and is not to be
shown on Form W-2.
However, if a SEP arrangement or SIMPLE IRA plan
provides for, and an employee elects to designate, a Roth
IRA as the IRA to which contributions under the
arrangement or plan are made, salary reduction
contributions contributed to the account are subject to
federal income tax, social security, Medicare, or railroad
retirement tax withholding. These contributions are
included on Form W-2 in boxes 1, 3, and 5 (or box 14a for
railroad retirement taxes) and are reported in box 12 using
code F (for a SEP) or code S (for a SIMPLE IRA).
Employer matching and nonelective contributions made to
a Roth IRA under a SIMPLE IRA plan or SEP arrangement
must be reported on Form 1099-R for the year in which
the contributions are made to the employee’s Roth IRA.
Report the total in boxes 1 and 2a of Form 1099-R and
complete box 7 as specified in the Instructions for Forms
1099-R and 5498. For additional guidance on SEP
arrangements or SIMPLE IRA plans to which salary
reduction contributions are made to Roth IRAs, see Q&A
K-1 through K-8 of Notice 2024-2, 2024-2 I.R.B. 316, at
IRS.gov/irb/2024-02_IRB#NOT-2024-2.
For more information on SIMPLE retirement accounts,
see Notice 98-4, 1998-1 C.B. 269. You can find Notice
98-4 on page 25 of Internal Revenue Bulletin 1998-2 at
IRS.gov/pub/irs-irbs/irb98-02.pdf.
Sick pay. If you had employees who received sick pay in
2026 from an insurance company or other third-party
payer and the third party notified you of the amount of sick
pay involved, you may be required to report the
information on the employees’ Forms W-2. If the insurance
company or other third-party payer did not notify you in a
timely manner about the sick pay payments, it must
prepare Forms W-2 and W-3 for your employees showing
the sick pay. For specific reporting instructions, see
section 6 of Pub. 15-A.
State Paid Family and Medical Leave Act (PFML Act).
The PFML Act provides wage replacement to workers for
periods in which they need to take time off from work due
to their nonoccupational injuries, illnesses, or medical
conditions, or to care for a family member with a serious
health condition or other prescribed circumstance. You
must include the employee contribution and the employer
voluntary payment as wages on the Form W-2. See Rev.
Rul. 2025-4, 2025-7 I.R.B. 758 and Notice 2026-6 for
more information.
Successor/predecessor employers. If you buy or sell a
business during the year, see Rev. Proc. 2004-53 for
information on who must file Forms W-2 and employment
tax returns. Rev. Proc. 2004-53, 2004-34 I.R.B. 320, is
available at IRS.gov/irb/2004-34_IRB#RP-2004-53.
Terminating a business. If you terminate your business,
you must provide Forms W-2 to your employees for the
calendar year of termination by the due date of your final
Form 941 or 944. You must also file Forms W-2 with the
SSA by the due date of your final Form 941 or 944. If filing
on paper, make sure you obtain Forms W-2 and W-3
General Instructions for Forms W-2 and W-3 (2026)
preprinted with the correct year. If e-filing, make sure your
software has been updated for the current tax year.
However, if any of your employees are immediately
employed by a successor employer, see Successor/
predecessor employers above. Also, for information on
automatic extensions for furnishing Forms W-2 to
employees and filing Forms W-2, see Rev. Proc. 96-57,
which is on page 14 of Internal Revenue Bulletin 1996-53
at IRS.gov/pub/irs-irbs/irb96-53.pdf.
Tip: Get Schedule D (Form 941), Report of Discrepancies
Caused by Acquisitions, Statutory Mergers, or
Consolidations, for information on reconciling wages and
taxes reported on Forms W-2 with amounts reported on
Forms 941 or 944.
Uniformed Services Employment and Reemployment
Rights Act of 1994 (USERRA) make-up amounts to a
pension plan. If an employee returned to your
employment after military service and certain make-up
amounts were contributed to a pension plan for a prior
year(s) under the USERRA, report the prior-year
contributions separately in box 12. See the TIP above
Code D under Box 12—Codes. You may also report
certain make-up amounts in box 14a. See Box
14a—Other in Specific Instructions for Form W-2.
Instead of reporting in box 12 (or box 14a), you may
choose to provide a separate statement to your employee
showing USERRA make-up contributions. The statement
must identify the type of plan, the year(s) to which the
contributions relate, and the amount contributed for each
year.
Virtual currency. For federal tax purposes, virtual
currency is treated as property. Bitcoin is an example of
virtual currency. Transactions using virtual currency (such
as Bitcoin) must be reported in U.S. dollars.
The fair market value (FMV) of virtual currency (such as
Bitcoin) paid as wages is income and subject to federal
income tax withholding, FICA tax, and FUTA tax and must
be reported on Form W-2. For more information about how
virtual currency is treated for federal income tax purposes,
including W-2 requirements, see Notice 2014-21, 2014-16
I.R.B. 938, available at IRS.gov/irb/
2014-16_IRB#NOT-2014-21 and Rev. Rul. 2019-24,
available at IRS.gov/irb/2019-44_IRB#REV-RUL-2019-24
and related FAQs, available at IRS.gov/
VirtualCurrencyFAQs.
Penalties
The following penalties apply to the person or employer
required to file Form W-2. The penalties apply to both
paper filers and e-filers.
Caution: Employers are responsible for ensuring that
Forms W-2 are furnished to employees and that Forms
W-2 and W-3 are filed with the SSA correctly and on time,
even if the employer contracts with a third party to perform
these acts. The IRS strongly suggests that the employer’s
address, not the third party’s address, be the address on
record with the IRS. This will ensure that you remain
informed of tax matters involving your business because
the IRS will correspond to the employer’s address of
record if there are any issues with an account. If you
General Instructions for Forms W-2 and W-3 (2026)
choose to outsource any of your payroll and related tax
duties (that is, withholding, reporting, and paying over
social security, Medicare, FUTA, and income taxes) to a
third-party payer, go to IRS.gov/OutsourcingPayrollDuties
for helpful information on this topic.
Failure to file correct information returns by the due
date. If you fail to file a correct Form W-2 by the due date
and cannot show reasonable cause, you may be subject
to a penalty as provided under section 6721. The penalty
applies if you:
• Fail to file timely,
• Fail to include all information required to be shown on
Form W-2,
• Include incorrect information on Form W-2,
• File on paper forms when you are required to e-file,
• Report an incorrect TIN,
• Fail to report a TIN, or
• Fail to file paper Forms W-2 that are machine readable.
The amount of the penalty is based on when you file
the correct Form W-2. Penalties are indexed for inflation.
The penalty amounts shown below apply to filings due
after December 31, 2026. The penalty is:
• $60 per Form W-2 if you correctly file within 30 days
after the due date; the maximum penalty is $698,500 per
year ($244,500 for small businesses, defined under Small
businesses, later);
• $130 per Form W-2 if you correctly file more than 30
days after the due date but by August 1; the maximum
penalty is $2,095,500 per year ($698,500 for small
businesses); or
• $340 per Form W-2 if you file after August 1, do not file
corrections, or do not file required Forms W-2; the
maximum penalty is $4,191,500 per year ($1,397,000 for
small businesses).
Caution: If you do not file corrections and you do not
meet any of the exceptions to the penalty, the penalty is
$340 per information return. The maximum penalty is
$4,191,500 per year ($1,397,000 for small businesses).
Exceptions to the penalty. The following are
exceptions to the failure to file correct information returns
penalty.
1. The penalty will not apply to any failure that you can
show was due to reasonable cause and not to willful
neglect. In general, you must be able to show that your
failure was due to an event beyond your control or due to
significant mitigating factors. You must also be able to
show that you acted in a responsible manner and took
steps to avoid the failure.
2. An inconsequential error or omission is not
considered a failure to include correct information. An
inconsequential error or omission is an error that does not
prevent or hinder the SSA/IRS from processing the Form
W-2, from correlating the information required to be shown
on the form with the information shown on the payee’s tax
return, or from otherwise putting the form to its intended
use. Errors and omissions that are never inconsequential
are those relating to:
• A TIN,
• A payee’s surname, and
• Any money amounts.
15
3. De minimis rule for corrections. Even though you
cannot show reasonable cause, the penalty for failure to
file correct Forms W-2 will not apply to a certain number of
returns if you:
• Filed those Forms W-2 on or before the required filing
date,
• Either failed to include all of the information required on
the form or included incorrect information, and
• Filed corrections of these forms by August 1.
If you meet all of the de minimis rule conditions, the
penalty for filing incorrect information returns (including
Form W-2) will not apply to the greater of 10 information
returns (including Form W-2) or one-half of 1% of the total
number of information returns (including Form W-2) that
you are required to file for the calendar year.
4. Forms W-2 issued with incorrect dollar amounts
may fall under a safe harbor for certain de minimis errors.
The safe harbor generally applies if no single amount in
error differs from the correct amount by more than $100
and no single amount reported for tax withheld differs from
the correct amount by more than $25.
If the safe harbor applies, you will not have to correct
the Form W-2 to avoid penalties. However, if the payee
elects for the safe harbor not to apply, you may have to
issue a corrected return to avoid penalties. For more
information, see Regulations section 301.6721-1(d).
Small businesses. For purposes of the lower
maximum penalties shown under Failure to file correct
information returns by the due date, earlier, you are a
small business if your average annual gross receipts for
the 3 most recent tax years (or for the period that you were
in existence, if shorter) ending before the calendar year in
which the Forms W-2 were due are $5 million or less.
Intentional disregard of filing requirements. If any
failure to timely file a correct Form W-2 is due to
intentional disregard of the filing or correct information
requirements, the penalty is at least $690 per Form W-2
with no maximum penalty.
Failure to furnish correct payee statements. If you fail
to provide correct payee statements (Forms W-2) to your
employees and cannot show reasonable cause, you may
be subject to a penalty as provided under section 6722.
The penalty applies if you fail to provide the statement by
February 1, 2027, if you fail to include all information
required to be shown on the statement, or if you include
incorrect information on the statement.
The amount of the penalty is based on when you
furnish the correct payee statement. This penalty is an
additional penalty and is applied in the same manner, and
with the same amounts, as in Failure to file correct
information returns by the due date, earlier.
Exceptions to the penalty. An inconsequential error
or omission is not considered a failure to include correct
information. An inconsequential error or omission is an
error that cannot reasonably be expected to prevent or
hinder the payee from timely receiving correct information
and reporting it on their income tax return or from
otherwise putting the statement to its intended use. Errors
and omissions that are never inconsequential are those
relating to:
16
• A dollar amount (except as provided above with respect
to the safe harbor for de minimis dollar amount errors);
• A significant item in a payee’s address; and
• The appropriate form for the information provided, such
as whether the form is an acceptable substitute for the
official IRS form.
See Exceptions to the penalty under Failure to file
correct information returns by the due date, earlier, for
additional exceptions to the penalty for failure to furnish
correct payee statements.
Intentional disregard of payee statement
requirements. If any failure to provide a correct payee
statement (Form W-2) to an employee is due to intentional
disregard of the requirements to furnish a correct payee
statement, the penalty is at least $690 per Form W-2 with
no maximum penalty.
Civil damages for fraudulent filing of Forms W-2. If
you willfully file a fraudulent Form W-2 for payments that
you claim you made to another person, that person may
be able to sue you for damages. If you are found liable,
you may have to pay $5,000 or more in damages. You may
also be subject to criminal sanctions.
Specific Instructions for Form W-2
How to complete Form W-2. Form W-2 is a multipart
form. Ensure all copies are legible. Do not print Forms
W-2 (Copy A) on double-sided paper.
Send Copy A to the SSA; Copy 1, if required, to your
state, city, or local tax department; and Copies B, C, and 2
to your employee. Keep a copy of Copy A, and a copy of
Form W-3, with your records for at least 4 years.
Enter the information on Form W-2 using black ink in
12-point Courier font. Copy A is read by machine and
must be typed clearly with no corrections made to the
entries and with no entries exceeding the size of the
boxes. Entries completed by hand, in script or italic fonts
are discouraged. Colors other than black cannot be read
by the machines. Make all dollar entries on Copy A
without the dollar sign and comma but with the decimal
point (00000.00). Show the cents portion of the money
amounts. If a box does not apply, leave it blank.
Send the whole Copy A page of Form W-2 with Form
W-3 to the SSA even if one of the Forms W-2 on the page
is blank or void. Do not staple Forms W-2 together or to
Form W-3. File Forms W-2 either alphabetically by
employees’ last names or numerically by employees’
SSNs.
Also see the Caution under How To Get Forms and
Publications.
Calendar year basis. The entries on Form W-2 must be
based on wages paid during the calendar year. Use Form
W-2 for the correct tax year. For example, if the employee
worked from December 13, 2026, through December 26,
2026, and the wages for that period were paid on January
1, 2027, include those wages on the 2027 Form W-2.
Multiple forms. If necessary, you can issue more than
one Form W-2 to an employee. For example, you may
need to report more than four coded items in box 12 or
you may want to report other compensation on a second
form. If you issue a second Form W-2, complete boxes a,
General Instructions for Forms W-2 and W-3 (2026)
b, c, d, e, and f with the same information as on the first
Form W-2. Show any items that were not included on the
first Form W-2 in the appropriate boxes.
If you need to issue an additional Form(s) W-2 to report
more than four coded items in box 12, the additional
Form(s) W-2 is included in the number of information
returns for the purpose of determining whether you must
e-file. For more information, see E-filing, earlier.
Do not report the same federal, American Samoa,
CNMI, Guam, or U.S. Virgin Islands tax data to the SSA
on more than one Copy A.
Tip: For each Form W-2 showing an amount in box 3 or 7,
make certain that box 5 equals or exceeds the sum of
boxes 3 and 7.
VOID. Check this box when an error is made on Form
W-2 and you are voiding it because you are going to
complete a new Form W-2. Do not include any amounts
shown on “VOID” forms in the totals you enter on Form
W-3. See Corrections.
Box a—Employee’s social security number. Enter the
number shown on the employee’s social security card.
If the employee does not have a card, they should
apply for one by completing Form SS-5, Application for a
Social Security Card. The SSA lets you verify employee
names and SSNs online. For information about these free
services, visit the Employer W-2 Filing Instructions &
Information website at SSA.gov/employer. If you have
questions about using these services, call 800-772-6270
(toll free) to speak with an employer reporting technician
at the SSA.
If the employee has applied for a card but the number is
not received in time for filing, enter “Applied For” in box a
on paper Forms W-2 filed with the SSA. If e-filing, enter
zeros (000-00-0000 if creating forms online or 000000000
if uploading a file).
Ask the employee to inform you of the number and
name as they are shown on the social security card when
it is received. Then correct your previous report by filing
Form W-2c showing the employee’s SSN. If the employee
needs to change their name from that shown on the card,
the employee should call the SSA at 800-772-1213.
If you do not provide the correct employee name and
SSN on Form W-2, you may owe a penalty unless you
have reasonable cause. For more information, see Pub.
1586, Reasonable Cause Regulations & Requirements for
Missing and Incorrect Name/TINs on Information Returns.
ITINs for aliens. Do not accept an ITIN in place of an
SSN for employee identification or for work. An ITIN is
only available to resident and nonresident aliens who are
not eligible for U.S. employment and need identification for
other tax purposes. You can identify an ITIN because it is
a nine-digit number formatted like an SSN beginning with
the number “9” and with a number in one of the following
ranges in the fourth and fifth digits: 50–65, 70–88, 90–92,
and 94–99 (for example, 9NN-70-NNNN). An individual
with an ITIN who later becomes eligible to work in the
United States must obtain an SSN.
Caution: Do not auto-populate an ITIN into box a.
General Instructions for Forms W-2 and W-3 (2026)
Box b—Employer identification number (EIN). Show
the EIN assigned to you by the IRS (00-0000000). This
should be the same number that you used on your federal
employment tax returns (Forms 941, 943, 944, CT-1, or
Schedule H (Form 1040)). Do not truncate your EIN. See
Regulations section 31.6051-1(a)(1)(i)(A) and
301.6109-4(b)(2)(iv). Do not use a prior owner’s EIN. If
you do not have an EIN when filing Forms W-2, enter
“Applied For” in box b; do not use your SSN. You can get
an EIN by applying online at IRS.gov/EIN or by filing Form
SS-4, Application for Employer Identification Number. Also
see Agent reporting.
Box c—Employer’s name, address, and ZIP code.
This entry should be the same as shown on your Forms
941, 943, 944, CT-1, or Schedule H (Form 1040). The
U.S. Postal Service recommends that no commas or
periods be used in return addresses. Also see Agent
reporting.
Box d—Control number. You may use this box to
identify individual Forms W-2. You do not have to use this
box.
Boxes e and f—Employee’s name and address. Enter
the name as shown on your employee’s social security
card (first name, middle initial, last name). If the name
does not fit in the space allowed on the form, you may
show the first and middle name initials and the full last
name. It is especially important to report the exact last
name of the employee. If you are unable to determine the
correct last name, use of the SSA’s Social Security
Number Verification System may be helpful.
Separate parts of a compound name with either a
hyphen or a blank space. Do not join them into a single
word. Include all parts of a compound name in the
appropriate name field. For example, for the name “Jessie
R Smith-Jones,” enter “Smith-Jones” or “Smith Jones” in
the last name field.
If the name has changed, the employee must get a
corrected social security card from any SSA office. Use
the name on the original card until you see the corrected
card.
Do not show titles or academic degrees, such as “Dr.,”
“RN,” or “Esq.,” at the beginning or end of the employee’s
name. Generally, do not enter “Jr.,” “Sr.,” or other suffix in
the “Suff.” box on Copy A unless the suffix appears on the
card. However, the SSA still prefers that you do not enter
the suffix on Copy A.
Include in the address the number, street, and
apartment or suite number (or P.O. box number if mail is
not delivered to a street address). The U.S. Postal Service
recommends that no commas or periods be used in
delivery addresses. For a foreign address, give the
information in the following order: city, province or state,
and country. Follow the country’s practice for entering the
postal code. Do not abbreviate the country name.
Box 1—Wages, tips, other compensation. Show the
total taxable wages, tips, and other compensation that you
paid to your employee during the year. However, do not
include elective deferrals (such as employee contributions
to a section 401(k) or 403(b) plan) except section 501(c)
(18) contributions. Include the following.
17
1. Total wages, bonuses (including signing bonuses),
prizes, and awards paid to employees during the year.
See Calendar year basis.
2. Total noncash payments, including certain fringe
benefits. See Fringe benefits.
3. Total tips reported by the employee to the employer
(not allocated tips).
4. Certain employee business expense
reimbursements. See Employee business expense
reimbursements.
5. The cost of accident and health insurance
premiums for 2%-or-more shareholder-employees paid by
an S corporation.
6. Taxable benefits from a section 125 (cafeteria) plan
if the employee chooses cash.
7. Employee contributions to an Archer MSA.
8. Employer contributions to an Archer MSA if
includible in the income of the employee. See Archer
MSA.
9. Employer contributions for qualified long-term care
services to the extent that such coverage is provided
through a flexible spending or similar arrangement.
10. Taxable cost of group-term life insurance in excess
of $50,000. See Group-term life insurance.
11. Unless excludable under Educational assistance
programs, payments for non-job-related education
expenses or for payments under a nonaccountable plan.
See Pub. 970.
12. The amount includible as wages because you paid
your employee’s share of social security and Medicare
taxes (or railroad retirement taxes, if applicable). See
Employee’s social security and Medicare taxes (or railroad
retirement taxes, if applicable) paid by employer. If you
also paid your employee’s income tax withholding, treat
the grossed-up amount of that withholding as
supplemental wages and report those wages in boxes 1,
3, 5, and 7. (Use box 14a if railroad retirement taxes
apply.) No exceptions to this treatment apply to household
or agricultural wages.
13. Designated Roth contributions made under a
section 401(k) plan, a section 403(b) salary reduction
agreement, or a governmental section 457(b) plan. See
Designated Roth contributions.
14. Distributions to an employee or former employee
from an NQDC plan (including a rabbi trust) or a
nongovernmental section 457(b) plan.
15. Amounts includible in income under section 457(f)
because the amounts are no longer subject to a
substantial risk of forfeiture.
16. Payments to statutory employees who are subject to
social security and Medicare taxes but not subject to
federal income tax withholding must be shown in box 1 as
other compensation. See Statutory employee.
17. Cost of current insurance protection under a
compensatory split-dollar life insurance arrangement.
18. Employee contributions to a health savings account
(HSA).
18
19. Employer contributions to an HSA if includible in the
income of the employee. See Health savings account
(HSA).
20. Amounts includible in income under section 409A
from an NQDC because the amounts are no longer
subject to a substantial risk of forfeiture and were not
previously included in income. See Nonqualified deferred
compensation plans under Special Reporting Situations
for Form W-2.
21. Nonqualified moving expenses and expense
reimbursements. See Moving expenses.
22. Payments made to former employees while they are
on active duty in the U.S. Armed Forces or other
uniformed services.
23. All other compensation, including certain
scholarship and fellowship grants. See Scholarship and
fellowship grants. Other compensation includes taxable
amounts that you paid to your employee from which
federal income tax was not withheld. You may show other
compensation on a separate Form W-2. See Multiple
forms.
24. Salary reduction contributions made to a Roth IRA
pursuant to a SEP arrangement or SIMPLE IRA plan. See
SEP arrangements and SIMPLE IRA plans.
Box 2—Federal income tax withheld. Show the total
federal income tax withheld from the employee’s wages
for the year. Include the 20% excise tax withheld on
excess parachute payments. See Golden parachute
payments.
For Forms W-2AS, W-2CM, W-2GU, or W-2VI, show
the total American Samoa, CNMI, Guam, or U.S. Virgin
Islands income tax withheld.
Box 3—Social security wages. Show the total wages
paid (before payroll deductions) subject to employee
social security tax but not including social security tips and
allocated tips. If reporting these amounts in a subsequent
year (due to lapse of risk of forfeiture), the amount must
be adjusted by any gain or loss. See Box 7—Social
security tips and Box 8—Allocated tips. Generally,
noncash payments are considered to be wages. Include
employee business expense reimbursements and moving
expenses reported in box 1. If you paid the employee’s
share of social security and Medicare taxes rather than
deducting them from wages, see Employee’s social
security and Medicare taxes (or railroad retirement taxes,
if applicable) paid by employer. The total of boxes 3 and 7
cannot exceed $184,500 (2026 maximum social security
wage base).
Report in box 3 elective deferrals to certain qualified
cash or deferred compensation arrangements and to
retirement plans described in box 12 (codes D, E, F, G,
and S) even though the deferrals are not includible in
box 1. Also report in box 3 designated Roth contributions
made under a section 401(k) plan, under a section 403(b)
salary reduction agreement, or under a governmental
section 457(b) plan described in box 12 (codes AA, BB,
and EE).
Amounts deferred (plus earnings or less losses) under
a section 457(f) or nonqualified plan or nongovernmental
section 457(b) plan must be included in boxes 3 and/or 5
General Instructions for Forms W-2 and W-3 (2026)
as social security and/or Medicare wages as of the later of
when the services giving rise to the deferral are performed
or when there is no substantial forfeiture risk of the rights
to the deferred amount. Include both elective and
nonelective deferrals for purposes of nongovernmental
section 457(b) plans.
Wages reported in box 3 also include the following.
• Signing bonuses an employer pays for signing or
ratifying an employment contract. See Rev. Rul. 2004-109,
2004-50 I.R.B. 958, available at IRS.gov/irb/
2004-50_IRB#RR-2004-109.
• Taxable cost of group-term life insurance over $50,000
included in box 1. See Group-term life insurance.
• Cost of accident and health insurance premiums for
2%-or-more shareholder-employees paid by an S
corporation, but only if not excludable under section
3121(a)(2)(B).
• Employee and nonexcludable employer contributions to
an MSA or HSA. However, do not include employee
contributions to an HSA that were made through a
cafeteria plan. See Archer MSA and Health savings
account (HSA).
• Salary reduction contributions under a SEP
arrangement or SIMPLE IRA plan. See SEP arrangements
and SIMPLE IRA plans.
• Adoption benefits. See Adoption benefits.
Box 4—Social security tax withheld. Show the total
employee social security tax (not your share) withheld,
including social security tax on tips. For 2026, the amount
should not exceed $11,439 ($184,500 × 6.2%). Include
only taxes withheld (or paid by you for the employee) for
2026 wages and tips. If you paid your employee’s share,
see Employee’s social security and Medicare taxes (or
railroad retirement taxes, if applicable) paid by employer.
Box 5—Medicare wages and tips. The wages and tips
subject to Medicare tax are the same as those subject to
social security tax (boxes 3 and 7) except that there is no
wage base limit for Medicare tax. Enter the total Medicare
wages and tips in box 5. Be sure to enter tips that the
employee reported even if you did not have enough
employee funds to collect the Medicare tax for those tips.
See Box 3—Social security wages for payments to report
in this box. If you paid your employee’s share of taxes, see
Employee’s social security and Medicare taxes (or railroad
retirement taxes, if applicable) paid by employer.
If you are a federal, state, or local governmental agency
with employees paying only Medicare tax, enter the
Medicare wages in this box. See Government employers.
Example of how to report social security and
Medicare wages. You paid your employee $199,750 in
wages. Enter in box 3 (social security wages) 184500.00,
but enter in box 5 (Medicare wages and tips) 199750.00.
There is no limit on the amount reported in box 5. If the
amount of wages paid was $184,500 or less, the amounts
entered in boxes 3 and 5 will be the same.
Box 6—Medicare tax withheld. Enter the total
employee Medicare tax (including any Additional
Medicare Tax) withheld. Do not include your share.
Include only tax withheld for 2026 wages and tips. If you
paid your employee’s share of the taxes, see Employee’s
General Instructions for Forms W-2 and W-3 (2026)
social security and Medicare taxes (or railroad retirement
taxes, if applicable) paid by employer.
For more information on Additional Medicare Tax, go to
IRS.gov/ADMTfaqs.
Box 7—Social security tips. Show the tips that the
employee reported to you even if you did not have enough
employee funds to collect the social security tax for the
tips. The total of boxes 3 and 7 should not be more than
$184,500 (the maximum social security wage base for
2026). Report all tips in box 1 along with wages and other
compensation. Also include any tips reported in box 7 in
box 5.
Box 8—Allocated tips (not applicable to Forms
W-2AS, W-2CM, W-2GU, or W-2VI). If you operate a
large food or beverage establishment, show the tips
allocated to the employee. See the Instructions for Form
8027, Employer’s Annual Information Return of Tip
Income and Allocated Tips. Do not include this amount in
box 1, 3, 5, or 7.
Box 10—Dependent care benefits (not applicable to
Forms W-2AS, W-2CM, W-2GU, or W-2VI). Show the
total dependent care benefits under a dependent care
assistance program (section 129) paid or incurred by you
for your employee. Include the fair market value (FMV) of
care in a daycare facility provided or sponsored by you for
your employee and amounts paid or incurred for
dependent care assistance in a section 125 (cafeteria)
plan. Report all amounts paid or incurred (regardless of
any employee forfeitures), including those in excess of the
$5,000 exclusion. This may include (a) the FMV of
benefits provided in kind by the employer, (b) an amount
paid directly to a daycare facility by the employer or
reimbursed to the employee to subsidize the benefit, or (c)
benefits from the pretax contributions made by the
employee under a section 125 dependent care flexible
spending account. Include any amounts over your plan’s
exclusion in boxes 1, 3, and 5. For more information, see
Pub. 15-B.
Tip: An employer that amends its cafeteria plan to
provide a grace period for dependent care assistance may
continue to rely on Notice 89-111 by reporting in box 10
the salary reduction amount elected by the employee for
the year for dependent care assistance (plus any
employer matching contributions attributable to
dependent care). Also see Notice 2005-42, 2005-23 I.R.B.
1204, available at IRS.gov/irb/
2005-23_IRB#NOT-2005-42, and Notice 2005-61,
2005-39 I.R.B. 607, available at IRS.gov/irb/
2005-39_IRB#NOT-2005-61.
Box 11—Nonqualified plans. The purpose of box 11 is
for the SSA to determine if any part of the amount
reported in box 1 or boxes 3 and/or 5 was earned in a prior
year. The SSA uses this information to verify that they
have properly applied the social security earnings test and
paid the correct amount of benefits.
Report distributions to an employee from a nonqualified
plan or nongovernmental section 457(b) plan in box 11.
Also report these distributions in box 1. Make only one
entry in this box. Distributions from governmental section
19
457(b) plans must be reported on Form 1099-R, not in
box 1 of Form W-2.
Under nonqualified plans or nongovernmental 457(b)
plans, deferred amounts that are no longer subject to a
substantial risk of forfeiture are reported even if not
distributed. Report these amounts in boxes 3 (up to the
social security wage base) and 5. Do not report in box 11
deferrals included in boxes 3 and/or 5 and deferrals for
current-year services (such as those with no risk of
forfeiture).
Caution: If you made distributions and are also reporting
any deferrals in boxes 3 and/or 5, do not complete box 11.
See Pub. 957, Reporting Back Pay and Special Wage
Payments to the Social Security Administration, and Form
SSA-131, Employer Report of Special Wage Payments,
for instructions on reporting these and other kinds of
compensation earned in prior years. However, do not file
Form SSA-131 if this situation applies and the
employee was not 61 years old or more during the
tax year for which you are filing Form W-2.
Unlike qualified plans, NQDC plans do not meet the
qualification requirements for tax-favored status for this
purpose. NQDC plans include those arrangements
traditionally viewed as deferring the receipt of current
compensation. Accordingly, welfare benefit plans, stock
option plans, and plans providing dismissal pay,
termination pay, or early retirement pay are generally not
NQDC plans.
Report distributions from NQDC or section 457 plans to
beneficiaries of deceased employees on Form
1099-MISC, not on Form W-2.
Military employers must report military retirement
payments on Form 1099-R.
Tip: Do not report special wage payments, such as
accumulated sick pay or vacation pay, in box 11. For more
information on reporting special wage payments, see Pub.
957.
Box 12—Codes. Complete and code this box for all
items described below. Note that the codes do not relate
to where they should be entered in boxes 12a through 12d
on Form W-2. For example, if you are only required to
report code D in box 12, you can enter code D and the
amount in box 12a of Form W-2. Report in box 12 any
items that are listed as codes A through II. Do not report in
box 12 section 414(h)(2) contributions (relating to certain
state or local government plans). Instead, use box 14a for
these items and any other information that you wish to
give to your employee. For example, union dues and
uniform payments may be reported in box 14a.
Tip: On Copy A (Form W-2), do not enter more than
four items in box 12. If more than four items need to be
reported in box 12, use a separate Form W-2 to report the
additional items (but enter no more than four items on
each Copy A (Form W-2)). On all other copies of Form
W-2 (Copies B, C, etc.), you may enter more than four
items in box 12 when using an approved substitute Form
W-2. See Multiple forms.
Use the IRS code designated below for the item you
are entering, followed by the dollar amount for that item.
20
Even if only one item is entered, you must use the IRS
code designated for that item. Enter the code using a
capital letter(s). Use decimal points but not dollar signs or
commas. For example, if you are reporting $5,300.00 in
elective deferrals under a section 401(k) plan, the entry
would be D 5300.00 (not A 5300.00 even though it is the
first or only entry in this box). Report the IRS code to the
left of the vertical line in boxes 12a through 12d and the
money amount to the right of the vertical line.
See the Form W-2 Reference Guide for Box 12 Codes.
The detailed instructions for each code are next.
Code A—Uncollected social security or RRTA tax
on tips. Show the employee social security or Railroad
Retirement Tax Act (RRTA) tax on all of the employee’s
tips that you could not collect because the employee did
not have enough funds from which to deduct it. Do not
include this amount in box 4.
Code B—Uncollected Medicare tax on tips. Show
the employee Medicare tax or RRTA Medicare tax on tips
that you could not collect because the employee did not
have enough funds from which to deduct it. Do not show
any uncollected Additional Medicare Tax. Do not include
this amount in box 6.
Code C—Taxable cost of group-term life insurance
over $50,000. Show the taxable cost of group-term life
insurance coverage over $50,000 provided to your
employee (including a former employee). See Group-term
life insurance. Also include this amount in boxes 1, 3 (up
to the social security wage base), and 5. Include the
amount in box 14a if you are a railroad employer.
Codes D through H, S, Y, AA, BB, and EE. Use these
codes to show elective deferrals and designated Roth
contributions made to the plans listed. Do not report
amounts for other types of plans. See the example for
reporting elective deferrals under a section 401(k) plan,
later.
The amount reported as elective deferrals and
designated Roth contributions is only the part of the
employee’s salary (or other compensation) that they did
not receive because of the deferrals or designated Roth
contributions. Only elective deferrals and designated Roth
contributions should be reported in box 12 for all coded
plans; except, when using code G for section 457(b)
plans, include both elective and nonelective deferrals.
For employees who were 50 years of age or older at
any time during the year and made elective deferral and/or
designated Roth “catch-up” contributions, report the
elective deferrals and the elective deferral “catch-up”
contributions as a single sum in box 12 using the
appropriate code and the designated Roth contributions
and designated Roth “catch-up” contributions as a single
sum in box 12 using the appropriate code.
Tip: If any elective deferrals, salary reduction amounts, or
nonelective contributions under a section 457(b) plan
during the year are make-up amounts under the
Uniformed Services Employment and Reemployment
Rights Act of 1994 (USERRA) for a prior year, you must
enter the prior-year contributions separately. Beginning
with the earliest year, enter the code, the year, and the
amount. For example, elective deferrals of $2,250 for 2024
General Instructions for Forms W-2 and W-3 (2026)
and $1,250 for 2025 under USERRA under a section
401(k) plan are reported in box 12 as follows.
D 24 2250.00, D 25 1250.00. A 2026 contribution of
$7,000 does not require a year designation; enter it as D
7000.00. Report the code (and year for prior-year
USERRA contributions) to the left of the vertical line in
boxes 12a through 12d.
The following are not elective deferrals and may be
reported in box 14a, but not in box 12.
• Nonelective employer contributions made on behalf of
an employee.
• After-tax contributions that are not designated Roth
contributions, such as voluntary contributions to a pension
plan that are deducted from an employee’s pay. See the
box 12 instructions for Code AA—Designated Roth
contributions under a section 401(k) plan, Code
BB—Designated Roth contributions under a section
403(b) plan, and Code EE—Designated Roth
contributions under a governmental section 457(b) plan
for reporting designated Roth contributions.
• Required employee contributions.
• Employer matching contributions.
Code D—Elective deferrals under a section 401(k)
cash or deferred arrangement (plan). Also show
deferrals under a SIMPLE retirement account that is part
of a section 401(k) arrangement.
Example of reporting excess elective deferrals and
designated Roth contributions under a section
401(k) plan. For 2026, Alex (age 45) elected to defer
$26,500 under a section 401(k) plan. Alex also made a
designated Roth contribution to the plan of $1,000, and
made a voluntary (non-Roth) after-tax contribution of
$600. In addition, the employer, on Alex’s behalf, made a
qualified nonelective contribution of $2,000 to the plan
and a nonelective profit-sharing employer contribution of
$3,000.
Even though the 2026 limit for elective deferrals and
designated Roth contributions is $24,500, Alex’s total
elective deferral amount of $26,500 is reported in box 12
with code D (D 26500.00). The designated Roth
contribution is reported in box 12 with code AA (AA
1000.00). The employer must separately report the actual
amounts of $26,500 and $1,000 in box 12 with the
appropriate codes. The amount deferred in excess of the
limit is not reported in box 1. The return of excess elective
deferrals and excess designated Roth contributions,
including earnings on both, is reported on Form 1099-R.
The $600 voluntary after-tax contribution may be
reported in box 14a (this is optional) but not in box 12. The
$2,000 qualified nonelective contribution and the $3,000
nonelective profit-sharing employer contribution are not
required to be reported on Form W-2, but may be reported
in box 14a.
Check the “Retirement plan” box in box 13.
Code E—Elective deferrals under a section 403(b)
salary reduction agreement.
Code F—Elective deferrals under a section 408(k)
(6) salary reduction SEP (this includes elective
deferrals made to a Roth SEP IRA).
Code G—Elective deferrals and employer
contributions (including nonelective deferrals) to any
General Instructions for Forms W-2 and W-3 (2026)
governmental or nongovernmental section 457(b)
deferred compensation plan. Do not report either
section 457(b) or section 457(f) amounts that are subject
to a substantial risk of forfeiture.
Code H—Elective deferrals under section 501(c)
(18)(D) tax-exempt organization plan. Be sure to
include this amount in box 1 as wages. The employee will
deduct the amount on their Form 1040 or 1040-SR.
Code J—Nontaxable sick pay. Show any sick pay
that was paid by a third party and was not includible in
income (and not shown in boxes 1, 3, and 5) because the
employee contributed to the sick pay plan. Do not include
nontaxable disability payments made directly by a state.
Code K—20% excise tax on excess golden
parachute payments (not applicable to Forms
W-2AS, W-2CM, W-2GU, or W-2VI). If you made excess
golden parachute payments to certain key corporate
employees, report the 20% excise tax on these payments.
If the excess payments are considered to be wages,
report the 20% excise tax withheld as income tax withheld
in box 2.
Code L—Substantiated employee business
expense reimbursements. Use this code only if you
reimbursed your employee for employee business
expenses using a per diem or mileage allowance and the
amount that you reimbursed exceeds the amount treated
as substantiated under IRS rules. See Employee business
expense reimbursements.
Report in box 12 only the amount treated as
substantiated (such as the nontaxable part). Include in
boxes 1, 3 (up to the social security wage base), and 5 the
part of the reimbursement that is more than the amount
treated as substantiated. Report the unsubstantiated
amounts in box 14a if you are a railroad employer.
Code M—Uncollected social security or RRTA tax
on taxable cost of group-term life insurance over
$50,000 (for former employees). If you provided your
former employees (including retirees) more than $50,000
of group-term life insurance coverage for periods during
which an employment relationship no longer exists, enter
the amount of uncollected social security or RRTA tax on
the coverage in box 12. Do not include this amount in
box 4. Also see Group-term life insurance.
Code N—Uncollected Medicare tax on taxable cost
of group-term life insurance over $50,000 (for former
employees). If you provided your former employees
(including retirees) more than $50,000 of group-term life
insurance coverage for periods during which an
employment relationship no longer exists, enter the
amount of uncollected Medicare tax or RRTA Medicare
tax on the coverage in box 12. Do not show any
uncollected Additional Medicare Tax. Do not include this
amount in box 6. Also see Group-term life insurance.
Code P—Excludable moving expense
reimbursements paid directly to a member of the U.S.
Armed Forces or intelligence community. The
exclusion for qualified moving expense reimbursements
applies only to members of the U.S. Armed Forces on
active duty who move pursuant to a military order and
incident to a permanent change of station, or an employee
or new appointee of the intelligence community.
21
Show the total moving expense reimbursements that
you paid directly to your employee for qualified
(deductible) moving expenses. See Moving expenses.
Code Q—Nontaxable combat pay. If you are a
military employer, report any nontaxable combat pay in
box 12.
Code R—Employer contributions to an Archer
MSA. Show any employer contributions to an Archer
MSA. See Archer MSA.
Code S—Employee salary reduction contributions
under a section 408(p) SIMPLE plan (this includes
salary reduction contributions made to a Roth
SIMPLE IRA). Show deferrals under a section 408(p)
salary reduction SIMPLE retirement account. However, if
the SIMPLE plan is part of a section 401(k) arrangement,
use code D. If you are reporting prior-year contributions
under USERRA, see the TIP above Code D under Box
12—Codes.
Code T—Adoption benefits. Show the total that you
paid or reimbursed for qualified adoption expenses
furnished to your employee under an adoption assistance
program. Also include adoption benefits paid or
reimbursed from the pretax contributions made by the
employee under a section 125 (cafeteria) plan. However,
do not include adoption benefits forfeited from a section
125 (cafeteria) plan. Report all amounts including those in
excess of the $17,670 exclusion. For more information,
see Adoption benefits.
Code V—Income from the exercise of nonstatutory
stock option(s). Show the spread (that is, the fair market
value (FMV) of stock over the exercise price of option(s)
granted to your employee with respect to that stock) from
your employee’s (or former employee’s) exercise of
nonstatutory stock option(s). Include this amount in boxes
1, 3 (up to the social security wage base), and 5. If you are
a railroad employer, do not include this amount in box 14a
for railroad employees covered by RRTA. For more
information, see For employees covered by RRTA tax
above.
This reporting requirement does not apply to the
exercise of a statutory stock option, or the sale or
disposition of stock acquired pursuant to the exercise of a
statutory stock option. For more information about the
taxability of employee stock options, see Pub. 15-B.
Code W—Employer contributions to a health
savings account (HSA). Show any employer
contributions (including amounts the employee elected to
contribute using a section 125 (cafeteria) plan) to an HSA.
See Health savings account (HSA).
Code Y—Deferrals under a section 409A
nonqualified deferred compensation plan. It is not
necessary to show deferrals in box 12 with code Y. For
more information, see Notice 2008-115, 2008-52 I.R.B.
1367, available at IRS.gov/irb/
2008-52_IRB#NOT-2008-115. However, if you report
these deferrals, show current-year deferrals, including
earnings during the year on current-year and prior-year
deferrals. See Nonqualified deferred compensation plans
under Special Reporting Situations for Form W-2.
Code Z—Income under a nonqualified deferred
compensation plan that fails to satisfy section 409A.
Enter all amounts deferred (including earnings on
22
amounts deferred) that are includible in income under
section 409A because the NQDC plan fails to satisfy the
requirements of section 409A. Do not include amounts
properly reported on a Form 1099-MISC, corrected Form
1099-MISC, Form W-2, or Form W-2c for a prior year. Also
do not include amounts that are considered to be subject
to a substantial risk of forfeiture for purposes of section
409A. For more information, see Regulations sections
1.409A-1, -2, -3, and -6; and Notice 2008-115.
The amount reported in box 12 using code Z is also
reported in box 1 and is subject to an additional tax
reported on the employee’s Form 1040 or 1040-SR. See
Nonqualified deferred compensation plans under Special
Reporting Situations for Form W-2.
For information regarding correcting section 409A
errors and related reporting, see Notice 2008-113, Notice
2010-6, and Notice 2010-80.
Code AA—Designated Roth contributions under a
section 401(k) plan. Use this code to report designated
Roth contributions under a section 401(k) plan. Do not use
this code to report elective deferrals under code D. See
Designated Roth contributions.
Code BB—Designated Roth contributions under a
section 403(b) plan. Use this code to report designated
Roth contributions under a section 403(b) plan. Do not
use this code to report elective deferrals under code E.
See Designated Roth contributions.
Code DD—Cost of employer-sponsored health
coverage. Use this code to report the cost of
employer-sponsored health coverage. The amount
reported with code DD is not taxable. Additional
reporting guidance, including information about the
transitional reporting rules that apply, is available on
IRS.gov at Affordable Care Act (ACA) Tax Provisions.
Code EE—Designated Roth contributions under a
governmental section 457(b) plan. Use this code to
report designated Roth contributions under a
governmental section 457(b) plan. Do not use this code to
report elective deferrals under code G. See Designated
Roth contributions.
Code FF—Permitted benefits under a qualified
small employer health reimbursement arrangement.
Use this code to report the total amount of permitted
benefits under a QSEHRA. The maximum reimbursement
for an eligible employee under a QSEHRA for 2026 is
$6,450 ($13,100 if it also provides reimbursements for
family members).
Report the amount of payments and reimbursements
the employee is entitled to receive under the QSEHRA for
the calendar year, not the amount the employee actually
receives. For example, a QSEHRA provides a permitted
benefit of $3,000. If the employee receives
reimbursements of $2,000, report a permitted benefit of
$3,000 in box 12 with code FF.
If your QSEHRA provides benefits that vary based on
the number of family members covered under the
arrangement or their ages and an eligible employee
receives no payments or reimbursements and provides no
proof of minimum essential coverage (MEC), report the
highest value permitted benefits that the QSEHRA
provides. If the employee later provides proof of MEC
General Instructions for Forms W-2 and W-3 (2026)
establishing eligibility for a lesser value permitted benefit,
report this lesser value permitted benefit on Form W-2.
Do not include carryover amounts from prior years in
the permitted benefit.
You may need to calculate a prorated permitted benefit
under some circumstances.
• If your QSEHRA provides a permitted benefit prorated
by month for employees not eligible for the full year, report
the prorated permitted benefit. For example, a QSEHRA
provides a permitted benefit of $3,000 prorated by the
number of months the employee is eligible. If an employee
becomes eligible on May 1, the employee’s permitted
benefit is $2,000 ($3,000 x 8/12) for the calendar year.
The employer reports the permitted benefit of $2,000 for
that employee in box 12 using code FF.
• If your QSEHRA is not based on a calendar year,
prorate the permitted benefit for each part of the
QSEHRA’s plan year that falls within the calendar year.
Report the sum of the prorated permitted benefits for the
two portions of the calendar year. For example, a
non-calendar-year QSEHRA has a plan year that begins
on April 1 and ends on March 31 of the following year.
From April 1, 2025, through March 31, 2026, the QSEHRA
provides a permitted benefit of $2,000. From April 1, 2026,
through March 31, 2027, the QSEHRA provides a
permitted benefit of $3,000. The employer reports a
permitted benefit of $2,750 (($2,000 x 3/12) + ($3,000 x
9/12)) for calendar year 2026.
You may also have to follow special reporting rules for
certain taxable reimbursements.
• If an employee who failed to have MEC for 1 or more
months during the year mistakenly received
reimbursements for expenses incurred in 1 of those
months, those reimbursements are taxable to the
employee. Report the taxable reimbursement as other
compensation in box 1, but not in box 3 or 5. The taxable
reimbursements are not wages for income, social security,
or Medicare tax, so do not withhold these taxes. Report
the permitted benefit that you would have reported for the
employee as though there was no failure to have MEC. If
you discover the lapse in MEC after filing with the SSA,
furnish the employee a correction on Form W-2c and file
the Form W-2c with the SSA.
• If your QSEHRA provides for taxable reimbursements of
either (a) over-the-counter drugs bought without a
prescription, or (b) premiums paid on a pretax basis for
coverage under a group health plan sponsored by the
employer of the employee’s spouse, include the amount of
the taxable reimbursements in boxes 1, 3, and 5 and treat
as wages for purposes of income, social security, and
Medicare taxes. Report the permitted benefit the
employee is entitled to receive under the QSEHRA for the
calendar year in box 12 using code FF. Although a part of
the permitted benefit is a taxable reimbursement, that
does not change the amount you report in box 12 with
code FF.
For more details on reporting the total amount of
QSEHRA permitted benefits, see Notice 2017-67, Q&A 57
through 63, 2017-47 I.R.B. 517 at IRS.gov/irb/
2017-47_IRB#NOT-2017-67.
Code GG—Income from qualified equity grants
under section 83(i). Report the amount includible in
General Instructions for Forms W-2 and W-3 (2026)
gross income from qualified equity grants under section
83(i)(1)(A) for the calendar year. See Qualified equity
grants under section 83(i) for more information.
Code HH—Aggregate deferrals under section 83(i)
elections as of the close of the calendar year. Report
the aggregate amount of income deferred under section
83(i) elections as of the close of the calendar year.
Code II—Medicaid waiver payments excluded from
gross income under Notice 2014-7. Report the amount
of Medicaid waiver payments not reported in box 1. See
Medicaid waiver payments for more information.
Code TA—Employer contributions under a section
128 Trump account contribution program paid to a
Trump account of an employee or a dependent of an
employee. (Forms W-2AS, W-2CM, W-2GU, or W-2VI
should check with the respective territory for
applicability.) Beginning July 4, 2026, employers may
contribute up to $2,500 a year, toward the $5,000
contribution limit to the Trump account of an employee or
of a dependent of an employee, and the amount will be
excluded from the gross income of the employee if paid
pursuant to a Trump account contribution program. For
more information about employer contributions to Trump
accounts, see Pub. 15-A.
Code TP—Total amount of cash tips reported to the
employer. (Forms W-2AS, W-2CM, W-2GU, or W-2VI
should check with the respective territory for
applicability.) Report the total amount of cash tips
reported to the employer. Tips are still generally subject to
federal income tax withholding and both the employer
share and employee share of social security tax and
Medicare tax if the tips received are $20 or more per
month. You must also list an occupation code in
box 14b—Treasury Tipped Occupation Code(s).
Code TT—Total amount of qualified overtime
compensation. (Forms W-2AS, W-2CM, W-2GU, or
W-2VI should check with the respective territory for
applicability.) Qualified overtime is compensation that is
paid to an individual required under section 7 of the Fair
Labor Standards Act (FLSA) of 1938 that is more than the
regular rate at which the individual is employed. For
example, only the “half” portion of “time-and-a-half”
compensation would be reported using code TT. Overtime
compensation is still generally subject to federal income
tax withholding and both the employer share and
employee share of social security tax and Medicare tax.
For more information about overtime compensation, go to
dol.gov/agencies/whd/overtime.
Box 13—Checkboxes. Check all boxes that apply.
Statutory employee. Check this box for statutory
employees whose earnings are subject to social security
and Medicare taxes but not subject to federal income tax
withholding. Do not check this box for common-law
employees. There are workers who are independent
contractors under the common-law rules but are treated
by statute as employees. They are called “statutory
employees.”
1. A driver who distributes beverages (other than milk)
or meat, vegetable, fruit, or bakery products; or who picks
up and delivers laundry or dry cleaning, if the driver is your
agent or is paid on commission.
23
2. A full-time life insurance sales agent whose
principal business activity is selling life insurance or
annuity contracts, or both, primarily for one life insurance
company.
3. An individual who works at home on materials or
goods that you supply and that must be returned to you or
to a person you name, if you also furnish specifications for
the work to be done.
4. A full-time traveling or city salesperson who works
on your behalf and turns in orders to you from
wholesalers, retailers, contractors, or operators of hotels,
restaurants, or other similar establishments. The goods
sold must be merchandise for resale or supplies for use in
the buyer’s business operation. The work performed for
you must be the salesperson’s principal business activity.
For details on statutory employees and common-law
employees, see section 1 in Pub. 15-A.
Retirement plan. Check this box if the employee was
an “active participant” (for any part of the year) in any of
the following.
1. A qualified pension, profit-sharing, or stock-bonus
plan described in section 401(a) (including a 401(k) plan).
2. An annuity plan described in section 403(a).
3. An annuity contract or custodial account described
in section 403(b).
4. A simplified employee pension (SEP) plan
described in section 408(k).
5. A SIMPLE retirement account described in section
408(p).
6. A trust described in section 501(c)(18).
7. A plan for federal, state, or local government
employees or by an agency or instrumentality thereof
(other than a section 457(b) plan).
Generally, an employee is an active participant if
covered by (a) a defined benefit plan for any tax year that
they are eligible to participate in, or (b) a defined
contribution plan (for example, a section 401(k) plan) for
any tax year that employer or employee contributions (or
forfeitures) are added to their account. For additional
information on employees who are eligible to participate in
a plan, contact your plan administrator. For details on the
active participant rules, see Notice 87-16, 1987-1 C.B.
446; Notice 98-49, 1998-2 C.B. 365; section 219(g)(5);
and Pub. 590-A, Contributions to Individual Retirement
Arrangements (IRAs). You can find Notice 98-49 on
page 5 of Internal Revenue Bulletin 1998-38 at
IRS.gov/pub/irs-irbs/irb98-38.pdf.
Tip: Do not check this box for contributions made to a
nonqualified or section 457(b) plan.
See the Form W-2 Box 13 Retirement Plan Checkbox
Decision Chart.
Third-party sick pay. Check this box only if you are a
third-party sick pay payer filing a Form W-2 for an
insured’s employee or are an employer reporting sick pay
payments made by a third party. See section 6 of Pub.
15-A.
Box 14a—Other. If you included 100% of a vehicle’s
annual lease value in the employee’s income, it must also
24
be reported here or on a separate statement to your
employee.
You may also use this box for any other information that
you want to give to your employee. Label each item.
Examples include state disability insurance taxes
withheld, union dues, uniform payments, health insurance
premiums deducted, nontaxable income, educational
assistance payments, or a minister’s parsonage allowance
and utilities. In addition, you may enter the following
contributions to a pension plan: (a) nonelective employer
contributions made on behalf of an employee, (b)
voluntary after-tax contributions (but not designated Roth
contributions) that are deducted from an employee’s pay,
(c) required employee contributions, and (d) employer
matching contributions.
If you are reporting prior-year contributions under
USERRA (see the TIP above Code D under Box
12—Codes and Uniformed Services Employment and
Reemployment Rights Act of 1994 (USERRA) make-up
amounts to a pension plan), you may report in box 14a
make-up amounts for nonelective employer contributions,
voluntary after-tax contributions, required employee
contributions, and employer matching contributions.
Report such amounts separately for each year.
Railroad employers, see Railroad employers for
amounts reportable in box 14a.
Box 14b—Treasury Tipped Occupation Code(s). Use
this box to report the Treasury Tipped Occupation Code(s)
if cash tips are reported in box 12 with code TP. Enter up
to two code(s) based on the occupation(s) that the tips
were received in. If tips were received in more than two
occupations, include the Treasury Tipped Occupation
Code for any two of the three or more occupations in
which tips were received. If any tips were received in a
nonqualifying occupation, then “000” must be input as one
of the occupation code(s). See IRS.gov/
TippedOccupations for the applicable code(s).
Boxes 15 through 20—State and local income tax information (not applicable to Forms W-2AS, W-2CM,
W-2GU, or W-2VI). Use these boxes to report state and
local income tax information. Enter the two-letter
abbreviation for the name of the state. The employer’s
state ID numbers are assigned by the individual states.
The state and local information boxes can be used to
report wages and taxes for two states and two localities.
Keep each state’s and locality’s information separated by
the broken line. If you need to report information for more
than two states or localities, prepare a second Form W-2.
See Multiple forms. Contact your state or locality for
specific reporting information.
Federal employers reporting income taxes paid to the
CNMI under the 5517 agreement, enter the employer’s
identification number in box 15. Enter the employee’s
CNMI wages in box 16. Enter the income taxes paid to the
CNMI in box 17. See Federal employers in the CNMI,
earlier, for more information.
Specific Instructions for Form W-3
How to complete Form W-3. The instructions under
How to complete Form W-2 generally apply to Form W-3.
General Instructions for Forms W-2 and W-3 (2026)
Use black ink for all entries. Scanners cannot read entries
if the type is too light. Be sure to send the entire page of
the Form W-3.
Tip: Amounts reported on related employment tax forms
(for example, Forms W-2, 941, 943, or 944) should agree
with the amounts reported on Form W-3. If there are
differences, you may be contacted by the IRS and SSA.
Retain your reconciliation information for future reference.
See Reconciling Forms W-2, W-3, 941, 943, 944, CT-1,
and Schedule H (Form 1040).
Box a—Control number. This is an optional box that you
may use for numbering the whole transmittal.
Box b—Kind of Payer. Check the box that applies to
you. Check only one box. If you have more than one type
of Form W-2, send each type with a separate Form W-3.
Note: The “Third-party sick pay” indicator box does not
designate a separate kind of payer.
941. Check this box if you file Forms 941 and no other
category applies. A church or church organization should
check this box even if it is not required to file Forms 941 or
944. If you are a railroad employer sending Forms W-2 for
employees covered under the Railroad Retirement Tax Act
(RRTA), check the “CT-1” box.
Military. Check this box if you are a military employer
sending Forms W-2 for members of the uniformed
services.
943. Check this box if you are an agricultural employer
and file Form 943 and you are sending Forms W-2 for
agricultural employees. For nonagricultural employees,
send their Forms W-2 with a separate Form W-3, checking
the appropriate box.
944. Check this box if you file Form 944 (or Formulario
944 (sp), its Spanish-language version), and no other
category applies.
CT-1. Check this box if you are a railroad employer
sending Forms W-2 for employees covered under the
RRTA. Do not show employee RRTA tax in boxes 3
through 7. These boxes are only for social security and
Medicare information. If you also have employees who are
subject to social security and Medicare taxes, send that
group’s Forms W-2 with a separate Form W-3 and check
the “941” checkbox on that Form W-3.
Hshld. emp. Check this box if you are a household
employer sending Forms W-2 for household employees
and you did not include the household employee’s taxes
on Forms 941, 943, or 944.
Medicare govt. emp. Check this box if you are a U.S.,
state, or local agency filing Forms W-2 for employees
subject only to Medicare tax. See Government employers.
Box b—Kind of Employer. Check the box that applies to
you. Check only one box unless the second checked box
is “Third-party sick pay.” See Pub. 557, Tax-Exempt Status
for Your Organization, for information about 501(c)(3)
tax-exempt organizations.
None apply. Check this box if none of the checkboxes
discussed next apply to you.
501c non-govt. Check this box if you are a
non-governmental tax-exempt section 501(c)
organization. Types of 501(c) non-governmental
organizations include private foundations, public charities,
General Instructions for Forms W-2 and W-3 (2026)
social and recreation clubs, and veterans organizations.
For additional examples of 501(c) non-governmental
organizations, see chapters 3 and 4 of Pub. 557.
State/local non-501c. Check this box if you are a state
or local government or instrumentality. This includes cities,
townships, counties, special-purpose districts, public
school districts, or other publicly owned entities with
governmental authority.
State/local 501c. Check this box if you are a state or
local government or instrumentality, and you have
received a determination letter from the IRS indicating that
you are also a tax-exempt organization under section
501(c)(3).
Federal govt. Check this box if you are a federal
government entity or instrumentality.
Box b—Third-party sick pay. Check this box if you are a
third-party sick pay payer (or are reporting sick pay
payments made by a third party) filing Forms W-2 with the
“Third-party sick pay” checkbox in box 13 checked. File a
single Form W-3 for the regular and “Third-party sick pay”
Forms W-2. See 941.
Box c—Total number of Forms W-2. Show the number
of completed individual Forms W-2 that you are
transmitting with this Form W-3. Do not count “VOID”
Forms W-2.
Box d—Establishment number. You may use this box
to identify separate establishments in your business. You
may file a separate Form W-3, with Forms W-2, for each
establishment even if they all have the same EIN; or you
may use a single Form W-3 for all Forms W-2 of the same
type.
Box e—Employer identification number (EIN). Enter
the 9-digit EIN assigned to you by the IRS. The number
should be the same as shown on your Forms 941, 943,
944, CT-1, or Schedule H (Form 1040) and in the
following format: 00-0000000. Do not truncate your EIN.
See Regulations section 31.6051-1(a)(1)(i)(A) and
301.6109-4(b)(2)(iv). Do not use a prior owner’s EIN. See
Box h—Other EIN used this year.
If you do not have an EIN when filing your Form W-3,
enter “Applied For” in box e, not your social security
number (SSN), and see Box b—Employer identification
number (EIN).
Box f—Employer’s name. Enter the same name as
shown on your Forms 941, 943, 944, CT-1, or Schedule H
(Form 1040).
Box g—Employer’s address and ZIP code. Enter your
address.
Box h—Other EIN used this year. If you have used an
EIN (including a prior owner’s EIN) on Forms 941, 943,
944, or CT-1 submitted for 2026 that is different from the
EIN reported on Form W-3 in box e, enter the other EIN
used. Agents generally report the employer’s EIN in box h.
See Agent reporting.
Employer’s contact person, Employer’s telephone
number, Employer’s fax number, and Employer’s
email address. Include this information for use by the
SSA if any questions arise during processing. The SSA
will notify the employer by email or postal mail to correct
25
and resubmit reports from the information provided on
Form W-3.
Caution: Payroll service providers, enter your client’s
information for these fields.
Tip: The amounts to enter in boxes 1 through 19,
described next, are totals from only the Forms W-2
(excluding any Forms W-2 marked “VOID”) that you are
sending with this Form W-3.
Boxes 1 through 8. Enter the totals reported in boxes 1
through 8 on the Forms W-2.
Box 9. Do not enter an amount in box 9.
Box 10—Dependent care benefits (not applicable to
Forms W-2AS, W-2CM, W-2GU, and W-2VI). Enter the
total reported in box 10 on Forms W-2.
Box 11—Nonqualified plans. Enter the total reported in
box 11 on Forms W-2.
Box 12a—Deferred compensation. Enter the total of all
amounts reported with codes D through H, S, Y, AA, BB,
and EE in box 12 on Forms W-2. Do not enter a code.
Caution: The total of Form W-2 box 12 amounts reported
with codes A through C, J through R, T through W, Z, DD,
FF through II, TA, TP, and TT is not reported on Form W-3.
Box 13—For third-party sick pay use only. Leave this
box blank. See Form 8922.
Box 14—Income tax withheld by payer of third-party
sick pay. Complete this box only if you are the employer
and have employees who had federal income tax withheld
on third-party payments of sick pay. Show the total income
tax withheld by third-party payers on payments to all of
your employees. Although this tax is included in the box 2
total, it must be separately shown here.
Box 15—State/Employer’s state ID number (territorial
ID number for Forms W-2AS, W-2CM, W-2GU, and
W-2VI). Enter the two-letter abbreviation for the name of
the state or territory being reported on Form(s) W-2. Also
enter your state- or territory-assigned ID number. If the
Forms W-2 being submitted with this Form W-3 contain
wage and income tax information from more than one
state or territory, enter an “X” under “State” and do not
enter any state or territory ID number.
Federal employers reporting income taxes paid to the
CNMI under the 5517 agreement, enter the employer’s
identification number in box 15. See Federal employers in
the CNMI, earlier, for more information.
Boxes 16 through 19 (not applicable to Forms
W-2AS, W-2CM, W-2GU, and W-2VI). Enter the total of
state/local wages and income tax shown in their
corresponding boxes on the Forms W-2 included with this
Form W-3. If the Forms W-2 show amounts from more
than one state or locality, report them as one sum in the
appropriate box on Form W-3. Verify that the amount
reported in each box is an accurate total of the Forms
W-2.
Federal employers reporting income taxes paid to the
CNMI under the 5517 agreement, enter the total of CNMI
wages on the Forms W-2 in box 16. Enter the total of
26
income taxes shown on the Forms W-2 paid to the CNMI
in box 17. See Federal employers in the CNMI, earlier, for
more information.
Reconciling Forms W-2, W-3, 941, 943, 944,
CT-1, and Schedule H (Form 1040)
Reconcile the amounts shown in boxes 2, 3, 5, and 7 from
all 2026 Forms W-3 with their respective amounts from the
2026 yearly totals from the quarterly Forms 941 or annual
Forms 943, 944, CT-1 (box 2 only), and Schedule H (Form
1040). When there are discrepancies between amounts
reported on Forms W-2 and W-3 filed with the SSA and on
Forms 941, 943, 944, CT-1, or Schedule H (Form 1040)
filed with the IRS, you will be contacted to resolve the
discrepancies.
Caution: To help reduce discrepancies on Forms
W-2, do the following.
• Report bonuses as wages and as social security and
Medicare wages on Form W-2; and on Forms 941, 943,
944, and Schedule H (Form 1040).
• Report both social security and Medicare wages and
taxes separately on Forms W-2 and W-3; and on Forms
941, 943, 944, and Schedule H (Form 1040).
• Report social security taxes withheld on Form W-2 in
box 4, not in box 3.
• Report Medicare taxes withheld on Form W-2 in box 6,
not in box 5.
• Do not report a nonzero amount in box 4 if boxes 3 and
7 are both zero.
• Do not report a nonzero amount in box 6 if box 5 is zero.
• Do not report an amount in box 5 that is less than the
sum of boxes 3 and 7.
• Make sure that the social security wage amount for
each employee does not exceed the annual social
security wage base limit ($184,500 for 2026).
• Do not report noncash wages that are not subject to
social security or Medicare taxes as social security or
Medicare wages.
• If you use an EIN on any quarterly Forms 941 for the
year (or annual Forms 943, 944, CT-1, or Schedule H
(Form 1040)) that is different from the EIN reported in box
e on Form W-3, enter the other EIN in box h on Form W-3.
To reduce the discrepancies between amounts
reported on Forms W-2 and W-3; and Forms 941, 943,
944, CT-1, and Schedule H (Form 1040), do the
following.
• Be sure that the amounts on Form W-3 are the total
amounts from Forms W-2.
• Reconcile Form W-3 with your four quarterly Forms 941
(or annual Forms 943, 944, CT-1, or Schedule H (Form
1040)) by comparing amounts reported for the following.
1. Income tax withholding (box 2).
2. Social security wages, Medicare wages and tips,
and social security tips (boxes 3, 5, and 7). Form W-3
should include Forms 941, 943, 944, or Schedule H (Form
1040) adjustments only for the current year. If the Forms
941, 943, or 944 adjustments include amounts for a prior
year, do not report those prior-year adjustments on the
current-year Forms W-2 and W-3.
3. Social security and Medicare taxes (boxes 4 and 6).
The amounts shown on the four quarterly Forms 941 (or
General Instructions for Forms W-2 and W-3 (2026)
annual Forms 943, 944, or Schedule H (Form 1040)),
including current-year adjustments, should be
approximately twice the amounts shown on Form W-3.
Amounts reported on Forms W-2 and W-3; and Forms
941, 943, 944, CT-1, or Schedule H (Form 1040) may not
match for valid reasons. If they do not match, you should
determine that the reasons are valid. Retain your
reconciliation information in case you receive inquiries
from the IRS or the SSA.
General Instructions for Forms W-2c
and W-3c
Applicable forms. Use with the current version of Form
W-2c and the current version of Form W-3c.
Purpose of forms. Use Form W-2c to correct errors on
Forms W-2, W-2AS, W-2CM, W-2GU, W-2VI, or W-2c
filed with the SSA. Also use Form W-2c to provide
corrected Forms W-2, W-2AS, W-2CM, W-2GU, W-2VI, or
W-2c to employees.
Corrections reported on Form W-2c may require you to
make corrections to your previously filed employment tax
returns using the corresponding “X” form, such as Form
941-X, Adjusted Employer’s QUARTERLY Federal Tax
Return or Claim for Refund; Form 943-X, Adjusted
Employer’s Annual Federal Tax Return for Agricultural
Employees or Claim for Refund; Form 944-X, Adjusted
Employer’s ANNUAL Federal Tax Return or Claim for
Refund; or Form CT-1X, Adjusted Employer’s Annual
Railroad Retirement Tax Return or Claim for Refund. See
section 13 of Pub. 15 (Circular E) and the Instructions for
Form CT-1X for more information. If you are making
corrections to a previously filed Schedule H (Form 1040),
see Pub. 926, Household Employer’s Tax Guide. If an
employee repaid you for wages received in a prior year,
also see Repayments.
Do not use Form W-2c to report corrections to back
pay. Instead, see Pub. 957, Reporting Back Pay and
Special Wage Payments to the Social Security
Administration, and Form SSA-131, Employer Report of
Special Wage Payments.
Do not use Form W-2c to correct Form W-2G, Certain
Gambling Winnings. Instead, see the Pub. 1099, General
Instructions for Certain Information Returns for the current
reporting year.
Use Form W-3c to send Copy A of Form W-2c to the
SSA. Always file Form W-3c when submitting one or more
Forms W-2c.
E-filing Forms W-2c and W-3c. The SSA encourages
all employers to e-file using its secure BSO website.
E-filing can save you time and effort and helps ensure
accuracy. See Requirement to e-file Forms W-2c for
information on when you are required to e-file Forms
W-2c.
Where to file paper Forms W-2c and W-3c. If you use
the U.S. Postal Service (other than Certified Mail), send
Forms W-2c and W-3c to:
General Instructions for Forms W-2 and W-3 (2026)
Social Security Administration
Direct Operations Center
P.O. Box 3333
Wilkes-Barre, PA 18767-3333
If you use a private delivery service or Certified mail
through the U.S. Postal Service, send Forms W-2c and
W-3c to:
Social Security Administration
Direct Operations Center
Attn: W-2c Process
1150 E. Mountain Drive
Wilkes-Barre, PA 18702-7997
Go to IRS.gov/PDS for a list of IRS-designated private
delivery services.
Tip: Do not send Forms W-2, W-2AS, W-2CM, W-2GU,
or W-2VI to either of these addresses. Instead, see Where
to file paper Forms W-2 and W-3.
When to file. File Forms W-2c and W-3c as soon as
possible after you discover an error. Also provide Form
W-2c to employees as soon as possible.
How to complete. If you file Forms W-2c and W-3c on
paper, make all entries using dark or black ink in 12-point
Courier font, if possible, and make sure all copies are
legible. See How to complete Form W-2.
If any item shows a change in the dollar amount and
one of the amounts is zero, enter “-0-.” Do not leave the
box blank.
Who may sign Form W-3c. Generally, employers must
sign Form W-3c. See Who may sign Form W-3.
Special Situations for Forms W-2c
and W-3c
Undeliverable Forms W-2c. See Undeliverable Forms
W-2.
Correcting Forms W-2 and W-3
Corrections. Use the current version of Form W-2c to
correct errors (such as incorrect name, SSN, or amount)
on a previously filed Form W-2 or Form W-2c. File Copy A
of Form W-2c with the SSA. To e-file your corrections, see
Correcting wage reports.
If the SSA issues your employee a replacement card
after a name change, or a new card with a different SSN
after a change in alien work status, file a Form W-2c to
correct the name/SSN reported on the most recently filed
Form W-2. It is not necessary to correct the prior years if
the previous name and number were used for the years
prior to the most recently filed Form W-2.
File Form W-3c whenever you file a Form W-2c with the
SSA, even if you are only filing a Form W-2c to correct an
employee’s name or SSN. However, see Employee’s
incorrect address on Form W-2, later, for information on
correcting an employee’s address. See Correcting an
incorrect tax year and/or EIN incorrectly reported on Form
W-2 or Form W-3, later, if an error was made on a
previously filed Form W-3.
27
If you discover an error on Form W-2 after you issue it
to your employee but before you send it to the SSA, check
the “VOID” box at the top of the incorrect Form W-2 on
Copy A. Prepare a new Form W-2 with the correct
information, and send Copy A to the SSA. Write
“CORRECTED” on the employee’s new copies (B, C, and
2), and furnish them to the employee. If the “VOID” Form
W-2 is on a page with a correct Form W-2, send the entire
page to the SSA. The “VOID” form will not be processed.
Do not write “CORRECTED” on Copy A of Form W-2.
If you are making a correction for previously filed Forms
941, 941-SS, 943, 944, or CT-1, use the corresponding
“X” forms, such as Forms 941-
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