Form W-2 Update: Box 12 Code FF
Tax season is pretty much here, so we hope you are ready to file your returns for 2019! If you’re not, then it’s time to get prepared. Part of being prepared is staying up to date on the latest tax form changes, new laws, and regulation changes. By knowing these updates you can correctly file on time and reduce the chances of your forms being rejected.
To help you be prepared for W-2 season today we’re going over the W-2 Box 12 Code FF for 2019. Also, you can get ahead start on Form W-2, because TaxBandits is already accepting returns for 2019.
W-2 Form Box 12 Code FF
Form W-2 is the IRS tax form used to report all employee income that has social security or Medicare tax withheld. Form W-2 also reports all compensations and benefits offered during the tax year. It serves as an annual statement that must be issued to each of your employees and filed with the Social Security Administration.
Small businesses must file for all employees who received $600 or more during the year for services performed. It’s very important to issue Form W-2 copies to each of your employees, as they will use them to complete their personal income tax returns.
While filing Form W-2 you will come across Box 12, which is used to report several different types of compensations and benefits offered. You will enter a single or double letter code depending on the type of compensation or benefit, followed by the dollar amount.
For example, K is the code for 20% excise tax on golden parachute payments and AA is the code for designated Roth contributions under a section 402(k) plan.
Now the new code FF is used to report permitted benefits under a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). Employers will use this to report any amounts of QSEHRA benefits allowable for the 2019 tax year.
For an eligible employee under QSEHRA, the maximum reimbursement is $4,950 for 2019. If the reimbursement also includes family members the maximum is $10,000. Keep in mind that for future tax years these amounts will be indexed for inflation. Learn more about QSEHRA here.
Filing Form W-2
Once you’re ready to file Form W-2 simply head to TaxBandits and create your free account. Then you can follow the simple interview style e-filing guide to help you quickly and easily complete your form.
Our IRS authorized system explains what information is required to complete your form and explains where to enter it. We’ve eliminated unnecessary steps to make the process faster and easier. Also, our built-in error check will notify you if you’ve left any necessary fields blank.
Plus, we’ve made the entire process incredibly convenient. You can use the bulk upload feature to upload all of your information at once in the beginning instead of manually entering in one by one. Also, you can use our postal mailing feature to have us print and mail each of your employee’s hard copies of their W-2 Forms.
We’re Here To Help
If you need any assistance while filing Form W-2, our amazing, US-based TaxBandits support team is here to help. Give us a call Monday – Friday from 9 AM to 6 PM EST at 704.684.4751. You can also reach us via live chat and take advantage of our 24/7 email support at support@TaxBandits.com.
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