Byline Form W2 Made Easy

Esign form w2

hello my name is Katie C Norris with C Norris wealth management and then this video would like to talk about form w2 how to understand that how to read it let's get going first of all w2 is issued by an employer to an employee if the employer during the year paid at least $600 or more in cash and cash equivalents to an employee if any taxes are withheld including those for Social Security and Medicare then a form w2 must be issued regardless of how much was paid to an employee now let's get to the form and go item-by-item box a includes your social security number you should always double check and make sure that this number over here is correct it probably will be one of the most important items box B is your employer identification number it's basically the equivalent of persons or security number box C is your current address box D right here is control number is actually internal number that used by your employer sometimes it could be just blank so you don't have to worry about that one box e is your first name initial and your last name and the same is whether your social security number it's always good idea to check if it's accurate or not I also in the same box or a letter F it's your address and zip code always check on this too now let's go to the right side of your screen box number one wages tips and other compensation it shows your taxable wages prizes and it could be any other fringe benefits so say it's fifty thousand box number two shows you federal income tax withheld and say it will be sixty eight hundred box number three shows you total wages subject to Social Security tax it could be the same number is in box one could be different say in our case it will be different forty eight five it doesn't have to be the same sometimes it could be less sometimes more box number four shows your total Social Security taxes withheld the year let's put it at 3,000 all numbers are approximate just to show you in general the amounts box number five indicates wages subject to Medicare taxes so let's put it at the same amount as source security wages at 48 five could be different than the box one and three box number six shows your amount of Medicare taxes withheld for the year like Social Security taxes Medicare taxes are figures based on flat rates Social Security tips for a box number seven if this box is blank it means that you did not report any tips to your employer but your unreported tips are still taxable that's in our example we have nothing allocated tips are those that your employer has attributed to you believe them blank in our example back start benign confuses a lot of people and at this point I've seen it's only blank but it's relatively new item it's possible that you could see 16 digit code in it that code is part of the growing security measures to assist the IRS with verifying that the form is authentic let's get to box number 10 dependent care benefits say in our example it will be five thousand dollars your employer will report the total benefits paid on your behalf on the dependent care assistance program including those greater than five thousand dollars exclusion amounts of which less of five thousand dollars and paid under the qualified plan consider our non-taxable benefits if the amount on line number ten exceeds the $5,000 then the amount over 5,000 will be included in the box number one box number three and box number five the important part that if it's over five it will be reflected in these three box number eleven non-qualified plans they'll include amounts that distribute it to you from your employer and non-qualified plan box number twelve has actually few items a B C and D it will include all kinds of different codes that you probably will see like codes d double D a B the most common ones are double D it's actually costs of employer sponsored health coverage D is your elective deferrals to your 401k plan box number three is the box with series of three little boxes statutory employee retirement plan and third party sick pay you will have one of the boxes be checked by your employer if it's applicable to you box number 14 that it says other it's a catch-all box pretty much your employer will report anything that it doesn't fit anyplace else in this box box number 15 it's pretty much straightforward will include abbreviation for you state say it will be Oregon or Washington and will include employer state ID if you have income state tax in your state you will see the employer state ID number if your resident of Washington Alaska the odds are you're gonna have the state abbreviation but the state ID number box will be blank if your subject two state taxes and box 16 you'll have the amounts of taxable wages tips any other compensation in box number 17 state income tax you'll show the total amount of state income tax they will have state wages here will be the same as in box 1 box number 18 if you're subject to local city and other state income taxes those will be reported in this box 18 local income tax reporting in line 9 and usually people that live in New York City they'll have that box filled the same with locality name like four and why I put the link to the forum w2 in the description thank you for watching hopefully it was a helpful video for you [Music] you