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 $142,800 (the maximum social security wage base for 2021). Report all tips in box 1 along with wages and other compensation. Also, include any tips reported in box 7 in box 5.
Column AC: (Reference Box 8 of W-2 form) 8Allocated tips
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 boxes 1, 3, 5, or 7.
Column AD: (Reference Box 10 of W-2 form) 10Dependent care benefits
Show the total dependent care benefits under a dependent care assistance program paid or incurred by you for your employee.
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 457(b) plans must be reported on Form 1099-R, not in box 1 of Form W-2.
Column AG-AN: (Reference Box 12a-12d of W-2 form) 12Codes.
See instructions on Codes. 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.
Column AO-AQ: (Reference Box 13 of W-2 form) 13Checkboxes.
Check all boxes that apply.
Column AR: (Reference Box 14 of W-2 form) 14Other. If you included 100% of a vehicle’s annual lease value in the employee’s income, it must also 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.
Column AS-CJ: (Reference Box 15-20 of W-2 form) State and local income tax information
Complete State information if necessary:
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, select “Add New State”.
To add additional localities, Select “Add More Locality”. Contact your state or locality for specific reporting information.
Once the template is complete, save it to your computer and drag and drop the file into the outlined field. Then click “Upload”
Once uploaded, you will receive a preview of the forms.
The preview will state the total number of records received, and allow for review. Once you have reviewed your forms, click “Continue to import”
Once imported, you will get a review of how many total records, how many were successfully uploaded, and how many records had errors.
If there are errors, you can click the error button to review the provided error information. You can then make the necessary changes and reupload your template.
Click “Continue Filing” once all records have been uploaded successfully.
Now you can choose to begin a new form, edit or preview the recently filed form, adjust your services, or continue filing.
After clicking “Continue” Update any errors, then click “Continue”:
Select the business(es) you are filing for, review your order details, then click to “Complete Your Order”:
When using prepaid credits, there is no need to enter or process a credit/debit card to file.
Simply select “Confirm and Transmit”:
*Not sure how to purchase credits? Check out our blog here.
Want to see steps for other business types, forms, or features? Comment below and we’ll make your request a future blog!
Ready to create your free TaxBandits account and get started?