Form W-2 (2015) – Employee Wage & Tax Statement Filing Checklist
Purpose and Reporting Requirements
The 2015 Form W-2 reports annual wages, federal/state/local tax withholding, Social Security and Medicare wages and taxes, tips, and employer-sponsored benefits for each employee.
Employers must report employer-sponsored health coverage costs in Box 12 using Code DD for informational purposes only.
This amount remains nontaxable to the employee and does not increase taxable income reported in Box 1. The 2015 tax year maintains the Additional Medicare Tax withholding threshold of $200,000 for single filers.
Employee Identification and Correction Procedures
You must verify employee identification data in boxes a, b, c, e, and f for accuracy. Confirm the employee's Social Security number, employer EIN, employer name/address/ZIP, employee name with suffix, and address match your records exactly.
Errors in name or SSN require correction via Form W-2c filed with the Social Security Administration. Instruct employees to request a new Social Security card from SSA if the name or SSN on their card differs from the W-2 reporting.
Wages, Tips, and Compensation Reporting
Box 1 Requirements:
- Enter total wages, tips, and other compensation for 2015 in Box 1.
- Include all taxable income except properly excluded amounts such as nontaxable combat pay reported under Box 12 Code Q, excludable moving expense reimbursements under Code P, and nontaxable sick pay under Code J.
- Report dependent care benefits over $5,000 as taxable income in Box 1.
- Verify all inclusions and exclusions meet IRS standards for 2015 reporting.
Federal Income Tax and Social Security Reporting
Report total federal income tax withheld during 2015 in Box 2. This amount allows the employee to determine refund eligibility and claim credit for excess taxes on their return.
Employees who earned from multiple employers in 2015 and had more than $7,347 in combined Social Security taxes withheld may claim a credit for excess Social Security tax.
Report Social Security wages subject to the 2015 wage base limit of $118,500 in Box 3 and corresponding Social Security tax withheld in Box 4.
Medicare Wages and Additional Medicare Tax
Enter Medicare wages and tips in Box 5 with no wage base limit applying to these amounts. Box 6 must reflect both the standard 1.45% Medicare tax and the 0.9% Additional Medicare Tax withheld on Medicare wages exceeding $200,000.
Direct employees to Form 8959 if they must reconcile Additional Medicare Tax liability. Elective deferrals under Codes D, E, F, S, G, and H must be included in Social Security wages unless plan rules or law specify otherwise.
Tips and Allocated Tips Procedures
Enter Social Security tips reported by the employee in Box 7 and allocated tips calculated under IRS guidelines in Box 8. Employees must file Form 4137 to calculate Social Security and Medicare tax on allocated tips exceeding $5,000 and report actual tips received.
This filing ensures Social Security tip credit posts correctly to the employee's earnings record. Allocated tips represent tips assigned to employees when reported tips fall below IRS-required percentages for the establishment.
Box 12 Codes for Retirement and Deferrals
Retirement Plan Contribution Codes:
- Code D: 401(k) elective deferrals with a limit of $18,000 for 2015, plus an additional $6,000 catch-up if age 50 or older
- Code E: 403(b) deferrals with a limit of $18,000, up to $21,000 if the 15-year rule applies
- Code S: SIMPLE plan deferrals with a limit of $12,500 for 2015
- Code AA: Designated Roth 401(k) contributions
- Code BB: Designated Roth 403(b) contributions
- Code EE: Designated Roth governmental 457(b) plan contributions
Health Savings and Medical Accounts
Report employer HSA contributions in Box 12 using Code W and Archer MSA contributions using Code R. Use Code DD to report the total cost of employer-sponsored health coverage, including employee and employer portions and Section 125 cafeteria plan contributions.
Clearly communicate to employees that Code DD amounts appear for informational purposes only and remain excluded from taxable income. The Code DD amount does not affect the employee's tax liability or wages reported in Box 1.
Retirement Plan Participation Indicator
Check the "Retirement plan" box in Box 13 if the employee participated in a retirement plan subject to deduction limits under IRC Section 219. This indicator alerts the employee to limitations on deductible traditional IRA contributions based on their participation status.
Employees must refer to Publication 590 for phase-out thresholds based on modified adjusted gross income. The retirement plan checkbox applies when the employee actively participated in employer-sponsored qualified plans during any part of 2015.
Employer-Specific Information Requirements
Complete Box 14 with employer-specific or state-mandated information as required by your jurisdiction. Report state disability insurance taxes, union dues, uniform cost reimbursements, health insurance premiums, educational assistance, or nontaxable income allocations.
Railroad employers must report RRTA compensation, Tier 1 and Tier 2 taxes, Medicare tax, and Additional Medicare Tax in Box 14. Include tips reported by the employee when calculating RRTA compensation for railroad workers.
State and Local Tax Information
Boxes 15-20 Requirements:
- Report the state employer ID number in Box 15 and state wages/tips in Box 16.
- Enter state income tax withheld in Box 17 according to state jurisdiction requirements.
- Report local wages/tips in Box 18 and local income tax withheld in Box 19.
- Enter the locality name in Box 20 for all applicable local tax jurisdictions.
- Verify state wage base limits and local tax calculations match actual withholding before finalizing entries.
Copy Assembly and Distribution Deadlines
Furnish Copies B, C, and 2 to the employee by February 2, 2016, as January 31, 2016, falls on a Sunday.
Send Copy A and Form W-3 to the Social Security Administration by February 29, 2016, for paper filing or March 31, 2016, if filing electronically.
Retain Copy D for your business records for at least four years. Do not fold, cut, or staple Copy A when submitting to SSA.
Form Standards and Submission Requirements
Use only official forms obtained from the IRS or downloaded from IRS.gov for SSA submission. Photocopies or versions printed from unauthorized online sources do not meet SSA processing standards and will be rejected.
Ensure all copies provided to employees contain identical information to Copy A filed with the SSA. Any differences between employee copies and the SSA-filed copy will delay processing of the employee's tax return and may result in disallowed refund claims.
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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.
