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Federal Tax Forms 2011 Ez

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Federal Tax Forms 2011 Ez

Federal tax forms 2011 ez Index A Accelerated death benefits, Accelerated Death Benefits, Accelerated death benefits. Federal tax forms 2011 ez Archer MSA, HSA, Archer MSA, or Medicare Advantage MSA, HSA, Archer MSA, or a Medicare Advantage MSA. Federal tax forms 2011 ez Assistance (see Tax help) Astronauts Tax forgiveness, Astronauts B Basis Inherited property, Basis of Inherited Property Joint interest property, Joint interest. Federal tax forms 2011 ez Qualified joint interest, Qualified joint interest. Federal tax forms 2011 ez Beneficiary Basis of property, Basis of Inherited Property Character of distributions, Character of Distributions Excess deductions, Excess deductions. Federal tax forms 2011 ez Income received, Other Items of Income Liability, estate's income tax, Liability of the beneficiary. Federal tax forms 2011 ez Nonresident alien, Nonresident alien beneficiary. Federal tax forms 2011 ez Reporting distributions, How and When To Report Successor, Successor beneficiary. Federal tax forms 2011 ez Treatment of distributions, Distributions to Beneficiaries Unused loss carryovers, Unused loss carryovers. Federal tax forms 2011 ez Bequest Defined, Bequest Property received, Gifts, Insurance, and Inheritances C Claim, credit or refund, Claim for Credit or Refund Combat zone, Combat Zone Comments, Comments and suggestions. Federal tax forms 2011 ez Coverdell education savings account (ESA), Coverdell Education Savings Account (ESA), Coverdell education savings account (ESA). Federal tax forms 2011 ez Credit Child tax, Child tax credit. Federal tax forms 2011 ez Earned income, Earned income credit. Federal tax forms 2011 ez Elderly or disabled, Credit for the elderly or the disabled. Federal tax forms 2011 ez Final return for decedent, Credits General business, General business tax credit. Federal tax forms 2011 ez D Death benefits Accelerated, Accelerated Death Benefits, Accelerated death benefits. Federal tax forms 2011 ez Public safety officers, Death benefits. Federal tax forms 2011 ez Decedent Final return, Final Income Tax Return for Decedent—Form 1040 Income in respect of, Income in Respect of a Decedent Deductions Estate tax, Estate Tax Deduction In respect of decedent, Deductions in Respect of a Decedent Medical expenses, Medical Expenses Standard, Standard Deduction Distributable net income, Distributable net income. Federal tax forms 2011 ez Distributions Deduction, Income Distribution Deduction Limit on deduction, Tax-exempt income not deductible. Federal tax forms 2011 ez Not treated as bequests, Distributions not treated as bequests. Federal tax forms 2011 ez Property, in kind, Property distributed in kind. Federal tax forms 2011 ez E Education savings account, Coverdell, Coverdell Education Savings Account (ESA), Coverdell education savings account (ESA). Federal tax forms 2011 ez Estate Income tax return, Income Tax Return of an Estate— Form 1041 Insolvent, Insolvent estate. Federal tax forms 2011 ez Period of administration, Period of Administration Tax deduction, Estate Tax Deduction Termination, Termination of Estate Transfer of unused deductions, Transfer of Unused Deductions to Beneficiaries Estate tax deduction, Estate Tax Deduction Estimated tax, Estimated tax. Federal tax forms 2011 ez , Transfer of Credit for Estimated Tax Payments Example Comprehensive, Comprehensive Example Decedent's final return, Final Return for Decedent—Form 1040 Estate's tax return, Income Tax Return of an Estate—Form 1041 Exemption Estate's tax return, Exemption Deduction Final return for decedent, Exemptions Expenses Accrued, Accrued expenses. Federal tax forms 2011 ez Administration, Administration Expenses Deductions in respect of decedent, Deductions in Respect of a Decedent Funeral, Funeral and Medical Expenses Medical, Medical Expenses, Medical and dental expenses of a decedent. Federal tax forms 2011 ez Extension to file Form 1041, Extension of time to file. Federal tax forms 2011 ez F Fiduciary relationship, Notice of fiduciary relationship. Federal tax forms 2011 ez Filing requirements Decedent's final return, Filing Requirements Estate's tax return, Filing Requirements Final return for decedent Credits, Credits Exemption and deductions, Exemptions and Deductions Filing requirements, Filing Requirements Income to include, Income To Include Joint return, Joint Return Name, address, and signature, Name, Address, and Signature Other taxes, Other Taxes Payments, Payments of Tax When and where to file, When and Where To File Who must file, Final Income Tax Return for Decedent—Form 1040 Form 1040NR, Nonresident Alien, Filing Requirements 1041, Income Tax Return of an Estate— Form 1041 1042, Nonresident alien beneficiary. Federal tax forms 2011 ez 1310, Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. Federal tax forms 2011 ez 4810, Form 4810. Federal tax forms 2011 ez 56, Notice of fiduciary relationship. Federal tax forms 2011 ez 6251, Form 6251. Federal tax forms 2011 ez 706, Estate and Gift Taxes SS–4, Identification number. Federal tax forms 2011 ez Free tax services, Free help with your tax return. Federal tax forms 2011 ez Funeral expenses, Funeral expenses. Federal tax forms 2011 ez G Gift, property, Gifts, Insurance, and Inheritances H Help (see Tax help) I Identification number, application, Identification number. Federal tax forms 2011 ez Income Community, Community Income Distributable net income, Distributable net income. Federal tax forms 2011 ez Distributed currently, Income That Must Be Distributed Currently Interest and dividend, Interest and Dividend Income (Forms 1099) Partnership, final return, Partnership Income S corporation, S Corporation Income Self-employment, Self-Employment Income Income in respect of decedent, Income in Respect of a Decedent, Inherited IRAs. Federal tax forms 2011 ez Income tax return of an estate Credits, tax, and payments, Credits, Tax, and Payments Exemption and deductions, Exemption and Deductions Filing requirements, Filing Requirements Income to include, Income To Include Name, address, and signature, Name, Address, and Signature When and where to file, When and Where To File Inherited IRAs, Inherited IRAs. Federal tax forms 2011 ez Inherited property, Gifts, Insurance, and Inheritances Installment obligations, Installment obligations. Federal tax forms 2011 ez , Installment obligations. Federal tax forms 2011 ez Insurance, Insurance J Joint return Revoked by personal representative, Personal representative may revoke joint return election. Federal tax forms 2011 ez Who can file, Joint Return L Losses Deduction on final return, Deduction for Losses Estate's tax return, Losses M Military or terrorist actions Claim for credit or refund, Claim for Credit or Refund Defined, Military or terrorist action defined. Federal tax forms 2011 ez Tax forgiveness, Tax Forgiveness for Armed Forces Members, Victims of Terrorism, and Astronauts N Notice of fiduciary relationship Form 56, Notice of fiduciary relationship. Federal tax forms 2011 ez P Partnership income, Partnership Income, Partnership income. Federal tax forms 2011 ez Penalty Information returns, Penalty. Federal tax forms 2011 ez Substantial valuation misstatement, Valuation misstatements. Federal tax forms 2011 ez Personal representative Defined, Personal Representative Duties, Duties Fees received, Fees Received by Personal Representatives Penalty, Penalty. Federal tax forms 2011 ez , Penalty. Federal tax forms 2011 ez Prompt assessment, request, Request for prompt assessment (charge) of tax. Federal tax forms 2011 ez Public safety officers, death benefits, Death benefits. Federal tax forms 2011 ez Publications (see Tax help) R Refund File for decedent, Refund Military or terrorist action deaths, Claim for Credit or Refund Release from liability, Request for discharge from personal liability for tax. Federal tax forms 2011 ez Return Decedent's final, Final Income Tax Return for Decedent—Form 1040 Estate's income tax, Income Tax Return of an Estate— Form 1041 Information, Information Returns Roth IRA, Roth IRAs. Federal tax forms 2011 ez S Separate shares rule, Separate shares rule. Federal tax forms 2011 ez Suggestions, Comments and suggestions. Federal tax forms 2011 ez Survivors Income, Other Items of Income Tax benefits, Tax Benefits for Survivors T Tax Alternative minimum Estate, Alternative minimum tax (AMT). Federal tax forms 2011 ez Individuals, Alternative minimum tax (AMT). Federal tax forms 2011 ez Benefits, survivors, Tax Benefits for Survivors Estimated, estate, Estimated tax. Federal tax forms 2011 ez , Transfer of Credit for Estimated Tax Payments Payments, final return, Payments of Tax Refund of income (claim), Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. Federal tax forms 2011 ez Self-employment, Self-employment tax. Federal tax forms 2011 ez Transfer of credit, Transfer of Credit for Estimated Tax Payments Tax help, How To Get Tax Help Terrorist action, tax relief, Tax Forgiveness for Armed Forces Members, Victims of Terrorism, and Astronauts Terrorist victim, Specified Terrorist Victim TTY/TDD information, How To Get Tax Help V Valuation method Inherited property, Basis of Inherited Property Special-use, Special-use valuation. Federal tax forms 2011 ez Victims of terrorist attacks, Specified Terrorist Victim W Widows and widowers, tax benefits, Qualifying widows and widowers. Federal tax forms 2011 ez Prev  Up     Home   More Online Publications
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The Federal Tax Forms 2011 Ez

Federal tax forms 2011 ez Publication 957 - Main Content Table of Contents 1. Federal tax forms 2011 ez What is Back Pay?Reporting Back Pay Back Pay Under a Statute Nonstatutory Back Pay Format for Report to the SSA Questions 2. Federal tax forms 2011 ez Special Wage PaymentsReporting Special Wage Payments Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments Nonqualified Deferred Compensation and Section 457 Plans Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) PlansSpecial rule for box 11 of Form W-2 (distributions and deferral in the same year). Federal tax forms 2011 ez 1. Federal tax forms 2011 ez What is Back Pay? Back pay is pay received in a tax year(s) for actual or deemed employment in an earlier tax year(s). Federal tax forms 2011 ez For social security coverage and benefit purposes, all back pay, whether or not under a statute, is wages if it is payment for covered employment. Federal tax forms 2011 ez Damages for personal injury, interest, penalties, and legal fees included with back pay awards are not wages. Federal tax forms 2011 ez Report all back pay. Federal tax forms 2011 ez However, the tax year(s) for which back pay is credited as wages for social security purposes is different if it is awarded under a statute. Federal tax forms 2011 ez See Back Pay Under a Statute , later, for more information. Federal tax forms 2011 ez Reporting Back Pay The Internal Revenue Service (IRS) and the SSA consider back pay awards to be wages. Federal tax forms 2011 ez However, for income tax purposes, the IRS treats all back pay as wages in the year paid. Federal tax forms 2011 ez Employers should use Form W-2, Wage and Tax Statement, or electronic wage reports to report back pay as wages in the year they actually pay the employee. Federal tax forms 2011 ez The SSA no longer accepts reports on tapes, cartridges, and diskettes. Federal tax forms 2011 ez Example. Federal tax forms 2011 ez In 2012, Terry Morris earned wages of $50,000. Federal tax forms 2011 ez In the same year, she received $100,000 in settlement of a back pay case against her employer that covered the periods January 2007 through December 2011. Federal tax forms 2011 ez Her employer properly reflected social security wages of $110,100 and Medicare wages of $150,000 on her 2012 Form W-2. Federal tax forms 2011 ez However, if an employer did not include back pay wages on a previously filed Form W-2, magnetic media, or electronically filed wage report, the employer should prepare a wage correction report, Form W-2c, Corrected Wage and Tax Statement, or electronically filed report, to add the back pay award to the wages previously reported. Federal tax forms 2011 ez Example. Federal tax forms 2011 ez If, in the above example, Terry Morris' employer had prepared her 2012 Form W-2 reporting social security and Medicare wages of only $50,000 each, the employer would have to correct that report. Federal tax forms 2011 ez A Form W-2c correcting the 2012 Form W-2 would show previously reported social security and Medicare wages of $50,000 and the correct amount of $110,100 for social security wages and $150,000 for Medicare wages. Federal tax forms 2011 ez SSA treatment of back pay under a statute. Federal tax forms 2011 ez   Under the law, the SSA credits back pay awarded under a statute to an individual's earnings record in the period(s) the wages should have been paid. Federal tax forms 2011 ez This is important because wages not credited to the proper year may result in lower social security benefits or failure to meet the requirements for benefits. Federal tax forms 2011 ez   However, back pay under statute payments will remain posted to the employee's social security earnings record in the year reported on Form W-2 (or Form W-2c) unless the employer or employee notifies the SSA (in a separate, special report) of the back pay under a statute payment. Federal tax forms 2011 ez Then, the SSA can allocate the statutory back pay to the appropriate periods. Federal tax forms 2011 ez   If a back pay award is not made under a statute, the SSA credits back pay as wages in the year paid. Federal tax forms 2011 ez    If employers do notify the SSA of this payment, they should prepare a special report (with the information noted below) and send it to: Social Security Administration Attn: CPS Back Pay Staff 7-B-15 SWT 1500 Woodlawn Drive Baltimore, MD 21241-0001 Be sure to send this special report to the above address because the SSA handles it separately from other reports. Federal tax forms 2011 ez    If you paid the back pay award in the same tax year to which it applies, report the wages on that year's Form W-2. Federal tax forms 2011 ez No further action is necessary. Federal tax forms 2011 ez Example. Federal tax forms 2011 ez In 2012, Judy Wilson received a salary of $30,000 and a back pay under statute award of $2,000 for the period January through June 2012. Federal tax forms 2011 ez Her employer properly reported wages of $32,000 for social security and Medicare on her 2012 Form W-2. Federal tax forms 2011 ez No further action is necessary. Federal tax forms 2011 ez Information the SSA needs to properly credit back pay under a statute (special report). Federal tax forms 2011 ez   After you complete the special report, you or the employee should send it to the SSA when or after you submit the Form W-2 (on paper or electronically) to the SSA for the year you pay the statutory back pay to the employee. Federal tax forms 2011 ez There is no statute of limitations on the filing of the special report to enable the SSA to allocate the wages. Federal tax forms 2011 ez The special report must include the following information. Federal tax forms 2011 ez The employer's name, address, and employer identification number (EIN). Federal tax forms 2011 ez A signed statement citing the federal or state statute under which the payment was made. Federal tax forms 2011 ez If the statute is not identified, the SSA will assume the payment was not under a statute and will not allocate to earlier period(s). Federal tax forms 2011 ez The name and telephone number of a person to contact. Federal tax forms 2011 ez The SSA may have additional questions concerning the back pay case or the individual employee's information. Federal tax forms 2011 ez A list of employees receiving the payment and the following information for each employee: The tax year you paid and reported the back pay. Federal tax forms 2011 ez The employee's social security number (SSN). Federal tax forms 2011 ez The employee's name (as shown on his or her social security card). Federal tax forms 2011 ez The amount of the back pay award excluding any amounts specifically designated otherwise, for example, damages for personal injury, interest, penalties, and legal fees. Federal tax forms 2011 ez The period(s) the back pay award covers (beginning and ending dates—month and year). Federal tax forms 2011 ez The other wages paid subject to social security and/or Medicare taxes and reported in the same year as the back pay award (if none, show zero)*. Federal tax forms 2011 ez Do not include the back pay award shown in that wage report. Federal tax forms 2011 ez If you originally submitted the report under an establishment number, show that number and the amount of money that is to remain under that establishment number. Federal tax forms 2011 ez The amount to allocate to each reporting period*. Federal tax forms 2011 ez This includes any amount you want allocated (if applicable) to the tax year of the award payment. Federal tax forms 2011 ez If you do not give the SSA specific amounts to allocate, the SSA does the allocation by dividing the back pay award by the number of months or years covered by the award. Federal tax forms 2011 ez *Note. Federal tax forms 2011 ez   For periods before January 1, 1978 (before January 1, 1981, for state and local government employers covered by a Section 218 agreement), show the wage amounts for each calendar quarter ending March 31, June 30, September 30, and December 31. Federal tax forms 2011 ez For all tax years, show and identify the social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) separately. Federal tax forms 2011 ez MQGE is applicable to federal employees beginning in 1983, and for certain state and local government employees beginning in 1986. Federal tax forms 2011 ez For tax years 1991 and later, list the social security and Medicare wages separately. Federal tax forms 2011 ez If you originally reported the individual's wages under an establishment or payroll record unit number, show the amount of wages to remain in the award year for that number and furnish that number to the SSA along with the EIN. Federal tax forms 2011 ez Back Pay Under a Statute Back pay awarded under a statute is a payment by an employer following an award, determination, or agreement approved or sanctioned by a court or government agency responsible for enforcing a federal or state statute that protects an employee's right to employment or wages. Federal tax forms 2011 ez Examples of pertinent statutes include: Age Discrimination in Employment Act, Americans with Disabilities Act, Equal Pay Act, Fair Labor Standards Act, National Labor Relations Act, State minimum wage laws, and State statutes that protect rights to employment and wages. Federal tax forms 2011 ez Payments based on laws that have a similar effect to those listed above also may qualify as payments made under a statute. Federal tax forms 2011 ez Back pay awards, under some of the statutes listed above, may be compensation for personal injury and not pay for employment. Federal tax forms 2011 ez Such awards are not wages for social security coverage purposes. Federal tax forms 2011 ez If a court-approved or sanctioned settlement agreement states that the agreement is not an admission of discrimination, liability, or act of wrongdoing, the statement does not change the nature of a back pay award. Federal tax forms 2011 ez The payments made in such a settlement may still be back pay and wages under the rules discussed here. Federal tax forms 2011 ez Nonstatutory Back Pay A payment for back wages negotiated between an employer and employee without an award, determination, or agreement approved or sanctioned by a court or government agency, the payment is not made under a statute. Federal tax forms 2011 ez Delayed wage payments and retroactive pay increases resulting from union negotiation or payments under local ordinances or regulations are back pay and are wages. Federal tax forms 2011 ez However, they are not payments made under a statute. Federal tax forms 2011 ez If you are uncertain whether the back pay award was under a qualified statute, you may need to contact your personnel department or legal counsel or the attorney who filed the suit. Federal tax forms 2011 ez Format for Report to the SSA Use the format shown in Table 1, later, to send the SSA the information needed to properly credit back pay under a statute. Federal tax forms 2011 ez In a cover letter, include: Name and address of the employer, Statute under which you paid the back pay, Name and telephone number of the employer contact, and Signature of the reporting official. Federal tax forms 2011 ez Under certain circumstances, back pay may be a special wage payment and excluded from wages counted under the social security earnings test. Federal tax forms 2011 ez If you pay back pay to an employee age 61 or older, report it to the SSA in accordance with this section. Federal tax forms 2011 ez Read Special Wage Payments, later, for additional reporting instructions. Federal tax forms 2011 ez Questions If you have questions concerning back pay under a statute, call the SSA at 1-800-772-6270. Federal tax forms 2011 ez Exception. Federal tax forms 2011 ez   If you are a state or local government employer who was covered by an agreement under Section 218 of the Social Security Act before January 1, 1987, and you paid a back pay award before January 1, 1987, which you did not report to the SSA, contact your state Social Security Administrator's office. Federal tax forms 2011 ez Table 1. Federal tax forms 2011 ez Format for Report (Under Covering Letter) to Request SSA to Allocate Back Pay Under Statute Wages Employer's EIN: xx-xxxxxxx Tax Year in Which Award Payment Was Paid: 2012 (1) SSN and Employee Name (2)1 Award Amount and Period(s) (3)2,3 Other Soc. Federal tax forms 2011 ez Sec. Federal tax forms 2011 ez /Med. Federal tax forms 2011 ez Wages Paid In Award Year (4)3 Allocation     Soc. Federal tax forms 2011 ez Sec. Federal tax forms 2011 ez Med. Federal tax forms 2011 ez /MQGE Year Soc. Federal tax forms 2011 ez Sec. Federal tax forms 2011 ez Med. Federal tax forms 2011 ez /MQGE xxx-xx-xxxx HELEN T. Federal tax forms 2011 ez SMITH $100,000 1/2009 - 12/2012 $40,000 $40,000 2009 2010 2011 2012 $20,000 25,000 27,000 28,000 $20,000 25,000 27,000 28,000 xxx-xx-xxxx SAM W. Federal tax forms 2011 ez EVANS 30,000 7/89-12/91 -0- -0- 1989 1990 1991   6,000 12,000 12,000 xxx-xx-xxxx ROLAND S. Federal tax forms 2011 ez ADAMS 15,000 7/80-12/81 -0- -0- 9/80 12/80 1981 3,500 3,500 8,000   1Exclude amounts specifically designated as damages, penalties, etc. Federal tax forms 2011 ez  2Exclude the amount of back pay, if any, included in that amount. Federal tax forms 2011 ez  3For periods before January 1, 1978 (and for state and local government (Section 218) employers before January 1, 1981), show the wage amounts by calendar quarters. Federal tax forms 2011 ez The social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) must be shown separately FOR ALL YEARS. Federal tax forms 2011 ez (Wages subject ONLY to MQGE would be shown in the Medicare/MQGE column; no wages would be shown in the Soc. Federal tax forms 2011 ez Sec. Federal tax forms 2011 ez column. Federal tax forms 2011 ez ) For tax years 1991 and later, the social security and Medicare wages must be listed separately. Federal tax forms 2011 ez Explanation of examples. Federal tax forms 2011 ez Helen T. Federal tax forms 2011 ez Smith–The back pay award, excluding interest, was $100,000 for the periods 1/2009-12/2012. Federal tax forms 2011 ez In 2012, this employee was also paid $40,000 in other wages. Federal tax forms 2011 ez (Her Form W-2 for 2012 reported $110,100 for social security and $140,000 for Medicare. Federal tax forms 2011 ez The SSA allocation will result in adjusted posted wages of $68,000 for social security and $68,000 for Medicare for 2012. Federal tax forms 2011 ez ) Sam W. Federal tax forms 2011 ez Evans–The back pay award was $30,000 for the periods 7/89-12/91. Federal tax forms 2011 ez This employee was hired in 1989 and was subject to MQGE only. Federal tax forms 2011 ez He was no longer employed by this governmental employer in 2012. Federal tax forms 2011 ez (His Form W-2 for 2012 reported $30,000 for social security and $30,000 for Medicare. Federal tax forms 2011 ez After the SSA allocation, he will not have any net posted wages for 2012. Federal tax forms 2011 ez ) Roland S. Federal tax forms 2011 ez Adams–The back pay award was $15,000 for the periods 7/80-12/81. Federal tax forms 2011 ez He was no longer employed by this state and local government (Section 218) employer in 2012. Federal tax forms 2011 ez (His Form W-2 for 2012 reported $15,000 for social security and $15,000 for Medicare; after the SSA allocation, he will not have any net posted wages for 2012. Federal tax forms 2011 ez ) If the state Social Security Administrator's office needs more information, they can contact the SSA at the following address:   Social Security Administration Office of Income Security Programs Office of Earnings and Program Integrity Policy 6401 Security Boulevard 2506 OPS Baltimore, MD 21235 2. Federal tax forms 2011 ez Special Wage Payments A special wage payment (SWP) is an amount paid by an employer to an employee (or former employee) for services performed in a prior year. Federal tax forms 2011 ez Employers should report to the SSA special wage payments made to employees and former employees who are recipients of social security retirement benefits. Federal tax forms 2011 ez Special wage payments made to a retired employee receiving social security or to an employee who continues to work while receiving social security benefits may reduce the benefits the individual receives if not reported to the SSA. Federal tax forms 2011 ez Special wage payments may include (but are not limited to): Accumulated sick and vacation pay, Back pay, Bonuses, Deferred compensation, Payments because of retirement, Sales commissions, Severance pay, and Stock options. Federal tax forms 2011 ez Note. Federal tax forms 2011 ez Payments made after retirement that are part of the normal payroll cycle should not be routinely reported as special wage payments. Federal tax forms 2011 ez Earnings Test. Federal tax forms 2011 ez   Benefits paid to a social security beneficiary under full retirement age may be reduced if the beneficiary continues to work. Federal tax forms 2011 ez The SSA uses the information in boxes 1, 3, and 5 of Form W-2 to determine the beneficiary's current year earnings. Federal tax forms 2011 ez Special wage payments, which are for services performed in a prior year, will increase the current year earnings on Form W-2, which also may result in a reduction in the beneficiary's benefits. Federal tax forms 2011 ez If a benefit is reduced because of a special wage payment, the beneficiary must get documentation from the employer before the SSA can restore the deducted portion. Federal tax forms 2011 ez Therefore, employer reports of special wage payments help prevent incorrect benefit reductions. Federal tax forms 2011 ez Reporting Special Wage Payments Employers must report special wage payments for income tax purposes and social security and Medicare taxes in the year received. Federal tax forms 2011 ez Report income, social security, and/or Medicare taxes for special wage payments on Form W-2. Federal tax forms 2011 ez See Nonqualified Deferred Compensation and Section 457 Plans, later, for reporting nonqualified deferred compensation plan deferrals and payments on Form W-2. Federal tax forms 2011 ez In addition, report to the SSA special wage payments made during the reporting year to retired employees and employees who continue to work while receiving social security benefits. Federal tax forms 2011 ez Submit reports after the close of the tax year. Federal tax forms 2011 ez To avoid delays in processing, submit reports in time to reach the SSA by April 1. Federal tax forms 2011 ez Use one of the following reporting methods. Federal tax forms 2011 ez Electronic reporting. Federal tax forms 2011 ez   Special wage payment files can be sent electronically by logging onto Business Services Online (BSO) via the socialsecurity. Federal tax forms 2011 ez gov website. Federal tax forms 2011 ez BSO enables organizations and authorized individuals to conduct business with and submit confidential information to the Social Security Administration. Federal tax forms 2011 ez You must register to use this website. Federal tax forms 2011 ez The web address is www. Federal tax forms 2011 ez socialsecurity. Federal tax forms 2011 ez gov/bso/bsowelcome. Federal tax forms 2011 ez htm. Federal tax forms 2011 ez   Use the specifications and record layout shown in  Table 2, later. Federal tax forms 2011 ez Only one file at a time may be submitted. Federal tax forms 2011 ez If your file is large (>10MB), or you have a slow internet connection, the transmission will be faster if the file is zipped. Federal tax forms 2011 ez A zipped file contains a file that has been compressed to reduce its file size. Federal tax forms 2011 ez WinZip and PKZIP are examples of acceptable compression packages. Federal tax forms 2011 ez   Electronic submissions not meeting the specifications in Table 2 will be rejected. Federal tax forms 2011 ez Paper listing. Federal tax forms 2011 ez   A paper listing can be used to report special wage payments to several employees. Federal tax forms 2011 ez Use the format shown in Table 3, later. Federal tax forms 2011 ez Submit paper listings to the local SSA office nearest your place of business. Federal tax forms 2011 ez Visit www. Federal tax forms 2011 ez socialsecurity. Federal tax forms 2011 ez gov/locator to find a Social Security office near you. Federal tax forms 2011 ez Form SSA-131. Federal tax forms 2011 ez   Use Form SSA-131 to report special wage payments made to an employee. Federal tax forms 2011 ez Also use this form to report nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in box 11 of Form W-2. Federal tax forms 2011 ez    This image is too large to be displayed in the current screen. Federal tax forms 2011 ez Please click the link to view the image. Federal tax forms 2011 ez Publication 957 Reporting Back Pay to the Social Security Administration Instructions for Form SSA–131   EMPLOYER INSTRUCTIONS FOR COMPLETING SPECIAL WAGE PAYMENT FORM 1. Federal tax forms 2011 ez Provide the EIN that was used or will be used to report the employee's wages on the Form W-2. Federal tax forms 2011 ez 2. Federal tax forms 2011 ez Enter the date the employee retired. Federal tax forms 2011 ez Enter “Not Retired” if the employee has not retired. Federal tax forms 2011 ez 3. Federal tax forms 2011 ez Enter the date that the employee last performed services; was not expected to return to work; and was not subject to recall to render additional services. Federal tax forms 2011 ez This date should be the same as or earlier than the date in item “2”. Federal tax forms 2011 ez Enter “Not Retired” if the employee has not retired. Federal tax forms 2011 ez 4. Federal tax forms 2011 ez Enter the wages that were paid to the employee in the tax year that were for services that were performed in years prior to the tax year or that were paid on account of retirement. Federal tax forms 2011 ez  Examples (not all inclusive) of payments to be included: Payments in lieu of vacation that were earned in a year prior to the tax year. Federal tax forms 2011 ez Accumulated sick payments which were paid in a lump sum based on “retirement” as the sole condition of payment. Federal tax forms 2011 ez Accumulated sick payments paid at or after the date in item 3, which were earned in a year prior to the tax year. Federal tax forms 2011 ez Payments “on account of retirement”–dismissal, severance or termination pay paid because of retirement. Federal tax forms 2011 ez Bonuses which are paid pursuant to a prior contract, agreement or promise causing the employee to expect such payments regularly; or announced to induce the employee to work more steadily, rapidly or efficiently or to remain with the employer. Federal tax forms 2011 ez Stock Options. Federal tax forms 2011 ez   Do not include in item “4” payments: For annual, sick, holiday, or vacation pay if used (absence from work) prior to the date of retirement (earlier of items “2” or “3”). Federal tax forms 2011 ez That were reported or will be reported under “Nonqualified Plans” on the Form W-2. Federal tax forms 2011 ez That were deducted from the employee's wages and paid to a deferred compensation plan (e. Federal tax forms 2011 ez g. Federal tax forms 2011 ez , 401k). Federal tax forms 2011 ez Employees health and dental plan benefits (non-covered/non-taxable for Social Security Wages). Federal tax forms 2011 ez Bonuses earned and paid in the tax year. Federal tax forms 2011 ez 5. Federal tax forms 2011 ez Check whether payments listed in item 4 will be made for years after the tax year. Federal tax forms 2011 ez If yes, please show the amounts and years in which these will be paid, if known. Federal tax forms 2011 ez 6. Federal tax forms 2011 ez Nonqualified deferred compensation and section 457 plans only. Federal tax forms 2011 ez If you were unable to report nonqualified deferred compensation or section 457 plan payments and deferrals (contributions) on Form W-2 because both payments and deferrals occurred during the year, show the amount of wages earned by the employee during the tax year. Federal tax forms 2011 ez Generally, the wages earned will be the compensation reported in block 1 of Form W-2 less payments from a nonqualified deferred compensation (or 457) plan, but including any amounts deferred under the plan during the tax year (See IRS Publication 957). Federal tax forms 2011 ez Paperwork/Privacy Act Notice: This report is authorized by regulation 20 CFR 404. Federal tax forms 2011 ez 702. Federal tax forms 2011 ez The information that you provide will be used in making a determination regarding the amount of Social Security benefits payable to the above named individual. Federal tax forms 2011 ez While your response is voluntary, if you do not respond we may not be able to make a correct determination regarding the amount of Social Security benefits payable to the above named individual for the year in question. Federal tax forms 2011 ez We may also use the information you give us when we match records by computer. Federal tax forms 2011 ez Matching programs compare our records with those of other Federal, State, or local government agencies. Federal tax forms 2011 ez Many agencies may use matching programs to find or prove that a person qualifies for benefits paid by the Federal Government. Federal tax forms 2011 ez The law allows us to do this even if you do not agree to it. Federal tax forms 2011 ez Explanations about these and other reasons why information you provide us may be used or given out are available in Social Security Offices. Federal tax forms 2011 ez If you want to learn more about this, contact any Social Security Office. Federal tax forms 2011 ez The Paperwork Reduction Act: This information collection meets the clearance requirements of 44 U. Federal tax forms 2011 ez S. Federal tax forms 2011 ez C. Federal tax forms 2011 ez §3507, as amended by Section 2 of the Paperwork Reduction Act of 1995. Federal tax forms 2011 ez You are not required to answer these questions unless we display a valid Office of Management and Budget control number. Federal tax forms 2011 ez We estimate that it will take you about 20 minutes to read the instructions, gather the necessary facts, and answer the questions. Federal tax forms 2011 ez Form SSA-131 (8-2001) EF (06-2002)   Submit Form SSA-131 to the SSA office nearest your place of business. Federal tax forms 2011 ez Or, the employee can submit it to the SSA office handling the claim. Federal tax forms 2011 ez You or the employee must submit this form before the SSA can exclude the special wage payments for purposes of the earnings test. Federal tax forms 2011 ez If reporting on more than one employee, complete a separate Form SSA-131 for each employee or use the paper listing format (except for reporting nonqualified and section 457 plan deferrals and payments) in Table 3. Federal tax forms 2011 ez Do not report payments from nonqualified deferred compensation or section 457 plans that were reported in box 11 of Form W-2. Federal tax forms 2011 ez Use Form SSA-131 if deferrals to and payments from nonqualified or section 457 plans occurred during the tax year. Federal tax forms 2011 ez Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments A nonstatutory (nonqualified) option to purchase stock which is exercised in a year after the year in which the option was earned is a special wage payment. Federal tax forms 2011 ez It should not count for the social security earnings test. Federal tax forms 2011 ez Nonstatutory (nonqualified) options exercised as special wage payments by retired employees or employees who continue to work while receiving social security benefits should be reported by employers using the above reporting methods. Federal tax forms 2011 ez Nonqualified Deferred Compensation and Section 457 Plans A nonqualified deferred compensation plan is a plan or arrangement established and maintained by an employer for one or more of its employees that provides for the deferral of compensation, but does not meet the requirements for a tax-qualified deferred compensation plan. Federal tax forms 2011 ez For social security and Medicare purposes, deferred compensation plans for employees of state and local governments (section 457 plans) are treated the same as nonqualified plans. Federal tax forms 2011 ez Nonqualified and section 457 plans are reported differently than other special wage payments. Federal tax forms 2011 ez See Reporting Amounts Deferred to Nonqualified and Section 457 Plans below for specific instructions. Federal tax forms 2011 ez Reporting Amounts Deferred to Nonqualified and Section 457 Plans Generally, when the related services are performed, nonqualified deferred compensation is subject to social security and Medicare tax when deferred. Federal tax forms 2011 ez However, if nonqualified and section 457 plans contain provisions that delay the employee's right to receive payments from the plan, a period of substantial risk of forfeiture exists. Federal tax forms 2011 ez The plans' deferrals, or contributions, are not subject to social security and Medicare taxes until the period of substantial risk of forfeiture ends. Federal tax forms 2011 ez No risk of forfeiture. Federal tax forms 2011 ez   If there is no risk of forfeiture, report wage amounts deferred to a nonqualified deferred compensation or section 457 plan in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Federal tax forms 2011 ez Example. Federal tax forms 2011 ez Company X's nonqualified deferred compensation plan allows the deferral of up to $20,000 of employee salaries each year. Federal tax forms 2011 ez The plan has no risk of forfeiture. Federal tax forms 2011 ez In 2012, Employee A defers $20,000 to the plan from a total salary of $200,000. Federal tax forms 2011 ez Form W-2 Completion Amount Box 1 $200,000 Box 3* 110,100 Box 5 200,000 *Wage base maximum for tax year 2012 Risk of forfeiture lapses before retirement. Federal tax forms 2011 ez   If the substantial risk of forfeiture lapses before the employee retires, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Federal tax forms 2011 ez The accumulated deferrals are reported along with any other social security and Medicare wages earned during the year. Federal tax forms 2011 ez   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. Federal tax forms 2011 ez If the employee continues working, future deferrals are social security and Medicare wages when they are earned. Federal tax forms 2011 ez    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Federal tax forms 2011 ez Risk of forfeiture lapses at retirement. Federal tax forms 2011 ez   When an employee's right to a payment is contingent upon working until retirement, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, as social security and/or Medicare wages in the year of retirement. Federal tax forms 2011 ez Add the amount to other wages paid in that year, and enter in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Federal tax forms 2011 ez   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. Federal tax forms 2011 ez    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Federal tax forms 2011 ez Example—risk of forfeiture. Federal tax forms 2011 ez At the end of the risk-of-forfeiture period for Company Y's nonqualified deferred compensation plan, Employee B's accumulated deferrals, plus interest earned by the plan, are $120,000, not including B's $20,000 deferral for this year. Federal tax forms 2011 ez B's wages, including this year's deferred amount, are $80,000. Federal tax forms 2011 ez Form W-2 Completion Amount Box 1 $60,000 Box 3* 110,100 Box 5 200,000 Box 11 120,000 *Wage base maximum for tax year 2012 Reporting Payments From Nonqualified and Nongovernmental Section 457 Plans When an employee or former employee retires and begins receiving payments (distributions) from a nonqualified or nongovernmental section 457 plan, report the payments in boxes 1 and 11 of Form W-2. Federal tax forms 2011 ez Report payments (distributions) from a governmental section 457 plan on Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Federal tax forms 2011 ez Example. Federal tax forms 2011 ez Employee D retired from the XYZ company and began receiving social security benefits. Federal tax forms 2011 ez XYZ paid D a $12,000 bonus upon retirement for sales made in a prior year, and D received $25,000 in payments from XYZ's nonqualified deferred compensation plan. Federal tax forms 2011 ez In addition, D agreed to continue performing services for XYZ, but on a part-time basis for wages of $15,000 per year. Federal tax forms 2011 ez D made no deferrals to the nonqualified plan this year. Federal tax forms 2011 ez Form W-2 Completion Amount Box 1 $52,000 Box 3 27,000 Box 5 27,000 Box 11 25,000 Report the $12,000 bonus to the SSA using electronic reporting, a paper listing, or Form SSA-131. Federal tax forms 2011 ez For more information, see Reporting Special Wage Payments , earlier. Federal tax forms 2011 ez Reporting Payments and Deferrals in the Same Year Do not complete box 11 when payments (distributions) are made from a nonqualified plan and deferrals are reported in boxes 3 and/or 5 of Form W-2 (including current year deferrals). Federal tax forms 2011 ez Report to the SSA on Form SSA-131 the total amount the employee earned during the tax year. Federal tax forms 2011 ez Normally, the amount earned is the amount reported in box 1 of Form W-2 less payments from a nonqualified or section 457 plan, but including any amounts deferred under the plan during the tax year. Federal tax forms 2011 ez See Form SSA-131 and its instructions, earlier. Federal tax forms 2011 ez Example. Federal tax forms 2011 ez Employee K retired this year from Company XYZ and began receiving social security benefits. Federal tax forms 2011 ez During the year he earned wages of $50,000 and deferred $35,000 of the wages into the company's nonqualified deferred compensation plan. Federal tax forms 2011 ez K also received $75,000 in payments from the company's nonqualified plan. Federal tax forms 2011 ez Form W-2 Completion Amount Special Wage Payment $75,000 Wages 50,000 Minus: deferral 35,000 Total reported in Box 1 $90,000     Wages including deferral reported in  Boxes 3 and 5 $50,000     Leave Box 11 blank. Federal tax forms 2011 ez File Form SSA-131 -0-     Form SSA-131 Completion Amount from Box 1 of Form W-2 $90,000 Minus: payments from a nonqualified plan 75,000 Plus: amounts deferred into the plan during the year 35,000 Total wages earned for purposes of Form SSA-131 (item 6) $50,000 Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) Plans It is not necessary to show amounts deferred during the year under an NQDC plan subject to section 409A. Federal tax forms 2011 ez If you report section 409A deferrals, show the amount in box 12 of Form W-2 using code Y. Federal tax forms 2011 ez For more information, see Notice 2008-115, 2008-52 I. Federal tax forms 2011 ez R. Federal tax forms 2011 ez B. Federal tax forms 2011 ez 1367, available at www. Federal tax forms 2011 ez irs. Federal tax forms 2011 ez gov/irb/2008-52_IRB/ar10. Federal tax forms 2011 ez html. Federal tax forms 2011 ez Special reporting rules apply when an NQDC plan is not compliant with section 409A (when there has been a “plan failure”). Federal tax forms 2011 ez Income included under section 409A from an NQDC plan is reported in box 1 and box 12 of Form W-2 using code Z. Federal tax forms 2011 ez See Notice 2008-115. Federal tax forms 2011 ez The following examples use small dollar amounts for illustrative purposes. Federal tax forms 2011 ez However, the amount reported in box 3 of Form W-2 is always limited by the social security earnings wage base (for example, $110,100 for 2012). Federal tax forms 2011 ez The term “vested” in the following examples means that the amount deferred is not subject to a substantial risk of forfeiture. Federal tax forms 2011 ez Conversely, the term “not vested” means that the amount deferred is subject to a substantial risk of forfeiture. Federal tax forms 2011 ez The examples assume that the NQDC plan is in compliance with section 409A, and that amounts deferred under the plan are not includible in gross income as they are deferred. Federal tax forms 2011 ez For purposes of the examples, it is assumed that the regular pay of the employee is remuneration for employment and wages for employment tax purposes except to the extent the deferral of a portion of the regular pay results in a reduction in wages. Federal tax forms 2011 ez Example 1: Deferral that is immediately vested (no substantial risk of forfeiture) with no distributions and no vesting of prior-year deferrals. Federal tax forms 2011 ez For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into her employer’s NQDC plan. Federal tax forms 2011 ez The deferral of $20 was vested upon deferral and there was an employer match of $10 under the plan, which was also vested. Federal tax forms 2011 ez Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10. Federal tax forms 2011 ez Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 vested deferral) $180 Box 3 ($200 Regular pay plus $10 Employer match, vested) 210 Box 5 ($200 Regular pay plus $10 Employer match, vested) 210 Box 11 -0- Example 2: Deferral with delayed vesting (substantial risk of forfeiture) of employee and employer portions (no distributions and no vesting of prior-year deferrals). Federal tax forms 2011 ez For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. Federal tax forms 2011 ez The deferral of $20 was not vested upon deferral, and there was an employer match of $10 under the plan, which was also not vested. Federal tax forms 2011 ez Regular pay = $200; Deferral, not vested = $20; Employer match, not vested = $10. Federal tax forms 2011 ez Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, not vested) $180 Box 3 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 5 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 11 -0- Example 3: Deferral that is immediately vested with prior-year deferrals and investment earnings on the prior-year deferrals that are now vesting (no distributions). Federal tax forms 2011 ez For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. Federal tax forms 2011 ez The deferral of $20 was vested upon deferral. Federal tax forms 2011 ez During the year, $100 of prior-year deferrals and $15 of investment earnings on the $100 of prior-year deferrals became vested. Federal tax forms 2011 ez Regular pay = $200; Deferral, vested = $20; Vesting of prior-year deferrals = $100; Vesting of investment earnings on $100 of prior-year deferral = $15. Federal tax forms 2011 ez Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, vested) $180 Box 3 ($200 Regular pay plus $100 vested prior-year deferral plus $15 earnings on deferral) 315 Box 5 ($200 Regular pay plus $100 vested prior-year deferral plus $15 vested investment earnings on prior year deferral) 315 Box 11 ($100 vested prior-year deferral plus $15 earnings) 115 Example 4: No deferrals but there are distributions (no vesting of prior-year deferrals). Federal tax forms 2011 ez For the year, the employee’s regular pay was $100, and the employee deferred no pay into the employer’s NQDC plan. Federal tax forms 2011 ez There was no vesting of prior-year deferrals under the plan. Federal tax forms 2011 ez During the year, there were total distributions of $50 from the plan to the employee. Federal tax forms 2011 ez Regular pay = $100; Distribution = $50. Federal tax forms 2011 ez Form W-2 Completion Amount Box 1 ($100 Regular pay plus $50 Distribution) $150 Box 3 ($100 Regular pay ) 100 Box 5 ($100 Regular pay) 100 Box 11 ($50 Distribution) 50 Special rule for box 11 of Form W-2 (distributions and deferral in the same year). Federal tax forms 2011 ez   If, in the same year, there are NQDC distributions and there are deferrals that are reportable in boxes 3 and/or 5 (current or prior-year deferrals) of Form W-2, do not complete box 11. Federal tax forms 2011 ez Instead, report on Form SSA-131 the total amount the employee earned during the year. Federal tax forms 2011 ez * Submit the SSA-131 to the nearest SSA office or give it to the employee. Federal tax forms 2011 ez   *Generally, the amount earned by the employee during the tax year for purposes of item 6 of Form SSA-131 is the amount reported in box 1 of Form W-2 plus current-year deferrals that are vested (employee and employer portions) less distributions. Federal tax forms 2011 ez Do not consider prior-year deferrals that are vesting in the current year. Federal tax forms 2011 ez If there was a plan failure, the box 1 amount in this calculation should be as if there were no plan failure. Federal tax forms 2011 ez Example 5: Deferral that is immediately vested and there are distributions (no vesting of prior-year deferrals). Federal tax forms 2011 ez For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Federal tax forms 2011 ez There was also an employer match of $10. Federal tax forms 2011 ez The deferral and employer match were vested upon deferral. Federal tax forms 2011 ez There was no vesting of prior-year deferrals under the plan. Federal tax forms 2011 ez During the year, there were total distributions of $50 from the plan to the employee. Federal tax forms 2011 ez Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10; Distribution = $50. Federal tax forms 2011 ez Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, vested) $230 Boxes 3 and 5 ($200 Regular pay plus $10 vested employer match) 210 Leave Box 11 blank. Federal tax forms 2011 ez File Form SSA-131 -0-     Form SSA-131 Completion Item 6 - amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $30 vested current year employee deferral and employer match) $210 Example 6: Deferral with delayed vesting and there are distributions (no vesting of prior-year deferrals). Federal tax forms 2011 ez For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Federal tax forms 2011 ez The deferral was not vested upon deferral. Federal tax forms 2011 ez There was no vesting of prior-year deferrals under the plan. Federal tax forms 2011 ez During the year, there were total distributions of $50 from the plan to the employee. Federal tax forms 2011 ez Regular pay = $200; Deferral, not vested = $20; Distribution = $50. Federal tax forms 2011 ez Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay minus $20 deferral that is not vested) 180 Box 11 ($50 Distribution). Federal tax forms 2011 ez 50 Example 7: Deferral that is immediately vested and there are distributions (also vesting of prior-year deferrals and earnings on those prior-year deferrals). Federal tax forms 2011 ez For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Federal tax forms 2011 ez The deferral was vested upon deferral. Federal tax forms 2011 ez There was vesting of $100 of prior-year deferrals and $15 of earnings on the $100 prior-year deferral under the plan. Federal tax forms 2011 ez During the year, there were total distributions of $50 from the plan to the employee. Federal tax forms 2011 ez Regular pay = $200; Deferral, vested = $20; Distribution = $50; Vesting of prior-year deferrals ($100) and earnings on those prior-year deferrals ($15) = $115. Federal tax forms 2011 ez Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 vested deferral $230 Boxes 3 and 5 ($200 Regular pay Plus $115 vested prior deferral (with vested earnings on the deferral)) 315 Leave Box 11 blank. Federal tax forms 2011 ez File Form SSA-131 -0-     Form SSA-131 Completion Item 6, amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $20 vested current year deferral) $200 Example 8: Deferral with delayed vesting and there are distributions (vesting of prior-year deferrals, including employer matches, and earnings on those deferrals). Federal tax forms 2011 ez For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Federal tax forms 2011 ez The deferral was not vested upon deferral. Federal tax forms 2011 ez There was also vesting of prior-year deferrals and employer matches and earnings on these amounts under the plan ($115). Federal tax forms 2011 ez During the year, there were total distributions of $50 from the plan to the employee. Federal tax forms 2011 ez Regular pay = $200; Deferral, not vested = $20; Distribution = $50; Vesting of prior-year deferrals and employer match = $100 plus earnings on that $100 of $15. Federal tax forms 2011 ez Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay plus $115 vested prior-year deferral and prior year employer match and earning on the prior year amounts minus $20 deferral that is not vested) 295 Leave Box 11 blank. Federal tax forms 2011 ez File Form SSA-131 -0-     Form SSA-131 Completion Item 6 ($230 Amount from Box 1 of Form W-2 minus $50 Distribution) $180 Table 2. Federal tax forms 2011 ez Specifications for Electronic Reporting of Special Wage Payments Record Position  Field Size   Description Start End 1 3 3 Record Type—must include only the capital letters “SWP” 4 12 9 SSN—must be numeric and may not be all zeros 13 27 15 Last Name—all capitals and no punctuation; may have blanks on right only 28 38 11 First Name—all capitals and no punctuation; may have blanks on right only 39 39 1 Middle Initial—must be either a capital letter or blank 40 48 9 EIN—must be numeric and may not be all zeros 49 59 11 Payment—must be numeric; may not be all zeros; last two digits on right are assumed to be cents; no period or dollar sign 60 63 4 Payment Year—must be only a four-digit year 64 66 3 SSA Office Code—must be numeric and may be all zeros 67 67 1 Payment Type Code—must be the capital letter “T” 68 117 50 Filler  The record format is a fixed length of 117. Federal tax forms 2011 ez  The file format is ASCII. Federal tax forms 2011 ez  Submit only one file at a time. Federal tax forms 2011 ez   Table 3. Federal tax forms 2011 ez Sample—Paper Listing for Reporting Special Wage Payments to Several Employees Report of Special Wage PaymentsTax Year: Page of A. Federal tax forms 2011 ez Employer Name: EIN:   Address: Contact Name:     Phone: ( )   . Federal tax forms 2011 ez 1) B. Federal tax forms 2011 ez Employee Name: (Last) (First) (MI)   C. Federal tax forms 2011 ez SSN: D. Federal tax forms 2011 ez SWP:$ E. Federal tax forms 2011 ez Type: Other: 2) B. Federal tax forms 2011 ez Employee Name: (Last) (First) (MI)   C. Federal tax forms 2011 ez SSN: D. Federal tax forms 2011 ez SWP:$ E. Federal tax forms 2011 ez Type: Other: 3) B. Federal tax forms 2011 ez Employee Name: (Last) (First) (MI)   C. Federal tax forms 2011 ez SSN: D. Federal tax forms 2011 ez SWP:$ E. Federal tax forms 2011 ez Type: Other: 4) B. Federal tax forms 2011 ez Employee Name: (Last) (First) (MI)   C. Federal tax forms 2011 ez SSN: D. Federal tax forms 2011 ez SWP:$ E. Federal tax forms 2011 ez Type: Other: 5) B. Federal tax forms 2011 ez Employee Name: (Last) (First) (MI)   C. Federal tax forms 2011 ez SSN: D. Federal tax forms 2011 ez SWP:$ E. Federal tax forms 2011 ez Type: Other:     INSTRUCTIONS:   Enter tax year and page number. Federal tax forms 2011 ez   A. Federal tax forms 2011 ez Employer name, employer identification number (EIN), address, the name of a contact person, and a phone number where the contact person can be reached during normal business hours. Federal tax forms 2011 ez   B. Federal tax forms 2011 ez Employee's name. Federal tax forms 2011 ez   C. Federal tax forms 2011 ez Employee's social security number (SSN). Federal tax forms 2011 ez   D. Federal tax forms 2011 ez Total amount of special wage payments made to the employee. Federal tax forms 2011 ez   E. Federal tax forms 2011 ez Type of special wage payment from the following list: (1) Vacation Pay, (2) Sick Pay, (3) Severance Pay,  (4) Bonus, (5) Deferred Compensation, (6) Stock Options, and (7) Other—Please explain. Federal tax forms 2011 ez   Do not use a paper listing for nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in block 11 of Form W-2. Federal tax forms 2011 ez (Get Form SSA-131. Federal tax forms 2011 ez )                 Prev  Up  Next   Home   More Online Publications