Form W-2 (2012) — Employee Wage and Tax Statement Checklist
Purpose and 2012 Tax Year Context
Form W-2 reports 2012 wages, withheld taxes, and retirement or health plan contributions for employees. Box 12 Code DD debuted in 2012 to report employer-sponsored health coverage costs as informational data only.
The reported health coverage amount is nontaxable and does not affect employee tax liability. Social Security wage base and RRTA Tier II thresholds are fixed for this tax year, and excess withheld taxes may be credited if multiple employers are involved.
Employee and Employer Identification
Verify Employee Information
Enter the employee's name, SSN, and current address on lines (e) through (f). If the employee's legal name does not match the Social Security card, note the correction requirement for Form W-2c filing per 2012 instructions.
The employee should contact SSA at 1-800-772-1213 or www.socialsecurity.gov to request a corrected card. Accurate employee identification prevents processing delays and SSA rejection of the filing.
Complete Employer Information
Enter employer EIN, full name, address, ZIP code, and control number on lines (a) through (d). Employer identification must match SSA records to prevent rejection during the February 28, 2013, SSA filing deadline.
Electronic filers receive an extended deadline of April 1, 2013, for submission. Consistent employer information across all W-2 forms ensures proper wage reporting and credit allocation.
Wage and Withholding Reporting
Report Federal Wages and Withholding
- Enter total compensation subject to federal income tax withholding in Box 1.
- Include all taxable wages, bonuses, and commissions in the Box 1 total.
- Report Box 1 wages on Form 1040, line 7; Form 1040A, line 7; or Form 1040EZ, line 1.
- Enter total federal income tax withheld during 2012 in Box 2.
- Report Box 2 federal income tax withheld on Form 1040, line 62; Form 1040A, line 38; or Form 1040EZ, line 7.
Accuracy in Box 2 reporting is critical for refund or liability determination on the employee's tax return. The employee uses these amounts to calculate final tax owed or refund due. Any discrepancies require immediate correction through Form W-2c filing procedures.
Report Social Security Wages and Tax
Enter Social Security wages capped at the 2012 wage base in Box 3. Enter the corresponding tax withheld at the 6.2% employee rate in Box 4.
If the employee had multiple employers and the total Social Security tax exceeds $4,624.20, the employee may claim excess credit on Form 1040 per the 2012 instructions and Publication 505. Railroad employees with multiple railroad employers follow RRTA Tier I and Tier II excess credit rules.
Report Medicare Wages and Tax
Enter Medicare wages and tips with no wage cap for 2012 in Box 5. Report tax withheld at the 1.45% employee rate in Box 6.
Include any additional Medicare tax if applicable under employer reporting rules for 2012. Medicare tax applies to all wages and tips without limitation during this tax year.
Box 12 Code Reporting Requirements
Complete Box 12 Codes Including New Code DD
If the employer reported health coverage cost under Code DD in 2012, ensure the amount appears in a separate Code DD line item. Code DD reporting is informational, and the amount is NOT taxable and NOT included in Box 1.
Verify all other codes (D, E, F, S, AA, BB, EE) for retirement deferrals match the 2012 annual contribution limits. The 401(k), 403(b), and similar plan base limit is $17,000, with an age 50+ catch-up of $5,500 and a SIMPLE catch-up of $2,500.
State, Local, and Supplemental Reporting
Report State and Local Tax Information
Complete employer state ID number, state wages (Box 16), state income tax withheld (Box 17), local wages (Box 18), local income tax withheld (Box 19), and locality name (Box 20). Ensure state and local amounts reconcile with employer withholding records for the entire 2012 calendar year.
State and local reporting requirements vary by jurisdiction and must comply with applicable state revenue department rules. Accurate state reporting prevents employee filing complications and state agency inquiries.
Check Retirement Plan and Third-Party Sick Pay Boxes
If the employee participated in an employer-sponsored retirement plan during 2012, check the "Retirement plan" box in Box 13. This signals to the employee that IRA contribution deduction limits may apply when filing the 2012 tax return.
Check "Third-party sick pay" if applicable to the employee's wage situation. These checkboxes affect the employee's ability to claim certain deductions and credits.
Verify Dependent Care and HSA Reporting
If the employer provided dependent care benefits, report the total in Box 10. Any amount exceeding $5,000 is also included in Box 1 as taxable income.
For HSA contributions shown as Code W, report employer contributions separately per 2012 requirements. The employee completes Form 8889 to report HSA contributions and distributions on the tax return.
Distribution and Filing Procedures
Assemble Copies for Distribution
- Furnish Copy B (federal), Copy C (employee records), and Copy 2 (state or local) to the employee by January 31, 2013.
- Retain Copy D (employer records) for at least 3 years after the filing date.
- Submit Copy A to SSA without folding, stapling, or cutting to ensure machine readability.
- Distribute all copies properly to ensure employees receive the necessary documentation for timely tax return filing.
Coordinate with Form W-3 Reconciliation
Ensure W-2 totals from all copies match corresponding Form W-3 summary fields before submission. Submit Copy A and Form W-3 transmittal to SSA by February 28, 2013, for paper filing.
Electronic filers must submit by April 1, 2013, using approved SSA electronic filing methods. If you file 250 or more Forms W-2, electronic submission is mandatory, and the SSA W-2 Online service is available at www.socialsecurity.gov/employer.
2012 Tax Year Updates and Thresholds
Box 12 Code DD Introduction
Form W-2 2012 adds Code DD to report employer-sponsored health coverage costs for informational purposes. Employees do not include Code DD amounts in taxable income or on the tax return.
Employers must separately identify Code DD from other Box 12 codes on the form. This reporting requirement helps employees understand the value of their health benefits.
Earned Income Credit Phase-Out Thresholds
Employees with no qualifying child must have earned income under $13,980 (or $19,190 if married filing jointly) to qualify for EIC. Workers with three or more qualifying children must have earned income under $45,060 (or $50,270 if married filing jointly).
These thresholds appear in the 2012 Form W-2 Notice to Employee and govern EIC eligibility. Employers provide this information to help employees determine potential EIC qualification.
Social Security and RRTA Excess Tax Credits
Employees who had more than one employer in 2012 and more than $4,624.20 in social security or Tier I RRTA tax withheld may claim a credit for the excess on Form 1040. Railroad workers with multiple railroad employers during 2012 face a Tier II RRTA excess threshold of $3,192.90.
Instructions specify that this credit applies only to excess withheld for 2012. Claiming the credit reduces the employee's total tax liability on the return.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
