Form W-2 (2017) Paper-Filing Checklist
Purpose and 2017 Tax Year Overview
Form W-2 reports 2017 wages, withholdings, and tax credits to employees and the Social Security Administration. Box 6 reflects the combined 1.45% regular Medicare tax and 0.9% Additional Medicare Tax withholding for wages exceeding the $200,000 employer withholding threshold.
Box 12 code DD reports employer health coverage cost as nontaxable and informational only, with no impact on Box 1 taxable wages. Dependent care benefits under Section 125 cafeteria plans remain capped at $5,000 for nontaxable treatment, and elective deferral limits to 401(k) plans are set at $18,000 with an age 50+ catch-up of $6,000 for the 2017 tax year.
Employee Identification and Wage Reporting
Verify Employee Information Accuracy
Verify employee identifying information, including name, SSN, and address, matches Social Security Administration records before filing, and correct any discrepancies on Copies B, C, and 2 before furnishing to the employee to prevent processing delays. File Form W-2c for SSA corrections if you discover errors after the initial Form W-2 filing, and provide corrected copies to the employee.
Report Total Wages and Compensation
Report total 2017 wages, tips, and other compensation in Box 1 for all employees receiving taxable compensation. Include taxable group-term life insurance over $50,000 reported with Code C in Box 12 as part of taxable wages.
Exclude employer health coverage cost reported with Code DD and nontaxable combat pay reported with Code Q from Box 1 amounts. Employee taxable wages in Box 1 determine federal income tax liability on the employee's tax return.
Calculate Federal Income Tax Withheld
Calculate and enter federal income tax withheld in Box 2 based on employee W-4 elections and withholding tables. Reconcile Box 2 amounts with Form 941 quarterly filings to ensure accuracy before furnishing copies by the January 31, 2018, deadline.
Form 941-V serves as a payment voucher when making payments by check or money order with Form 941 quarterly returns. Accurate Box 2 reporting ensures correct refund or liability determination on the employee's federal return and prevents processing delays.
Medicare and Social Security Tax Reporting
Report Medicare Wages and Tax Withheld
Enter Box 5 for Medicare wages and tips with no wage cap for 2017, and enter Box 6 for Medicare tax withheld, including both 1.45% regular Medicare tax and 0.9% Additional Medicare Tax for applicable wages. Employees must file Form 8959 if their Medicare wages and tips exceed $250,000 (married filing jointly), $125,000 (married filing separately), or $200,000 (single, head of household, or qualifying widow(er)).
Report Allocated Tips
Report allocated tips in Box 8 when the employer allocates tips to employees based on gross receipts and hours worked, but do not include allocated tips in Boxes 1, 3, 5, or 7 on the Form W-2. Employees must file Form 4137 to report allocated tips as income and calculate owed social security and Medicare tax, or report lower amounts if documented actual tips are lower.
Box 12 Retirement and Benefit Codes
Use Correct Box 12 Codes for Deferrals
• Code D: 401(k) deferrals with an $18,000 limit and age 50+ additional $6,000 catch-up.
• Code E: 403(b) salary reduction contributions.
• Code AA/BB/EE: Designated Roth contributions to 401(k), 403(b), or 457(b) plans.
• Code H: 501(c)(18)(D) plans with a $7,000 annual limit.
• Code S: SIMPLE plan deferrals with a $12,500 limit and age 50+ additional $3,000 catch-up.
• Code C: Taxable group-term life insurance over $50,000.
• Code DD: Employer-sponsored health coverage cost (nontaxable, informational).
• Code Q: Nontaxable combat pay.
• Code K: Excess golden parachute excise tax.
Box 12 codes report amounts for the 2017 tax year shown on Form W-2 for that calendar year. Section 403(b) special 15-year rule deferrals are permitted with higher limits under Publication 571 guidance for eligible employees with service.
Dependent Care and Retirement Plan Reporting
Report Dependent Care Benefits
Enter dependent care benefits in Box 10 for all amounts provided during 2017 under employer-sponsored dependent care assistance programs. Include any amount exceeding $5,000 in Box 1 as taxable wages subject to federal income tax withholding and employment taxes.
The employee completes Form 2441 to determine taxable and nontaxable portions under Section 125 cafeteria plan rules for dependent care. The $5,000 threshold applies to the total dependent care benefits provided for the tax year per household for married couples.
Check Retirement Plan Coverage
Check Box 13 "Retirement plan" if the employee is covered by an employer retirement plan in 2017 at any time, as this checkbox limits the employee's traditional IRA deduction eligibility under Publication 590-A rules based on income thresholds. The retirement plan checkbox applies to 401(k), 403(b), defined benefit, SIMPLE, SEP, and other qualified plans maintained by employers.
Additional Reporting and Distribution
Complete Box 14 Optional Information
Enter Box 14 (Other) with employer-specific information as needed for state or local requirements, including state disability insurance taxes, union dues, uniform costs, health insurance premiums, nontaxable income, educational assistance, or clergy parsonage allowance. Box 14 accommodates multiple entries with descriptive labels for each amount.
Furnish Employee Copies Timely
Furnish Copies B, C, and 2 to each 2017 employee by January 31, 2018; retain Copy D for employer records for at least three years; and complete Form W-3 transmittal with Copy A for Social Security Administration submission by February 28, 2018. Do not report the Box 9 verification code on paper-filed returns, as this code is used only by employees e-filing.
Year-Specific 2017 Updates
Additional Medicare Tax Requirements
Box 5 Medicare wages over $200,000 trigger employer withholding of Additional Medicare Tax at 0.9% for the excess amount. Employees must file Form 8959 when their Medicare wages and tips exceed the threshold for their filing status to reconcile withholding.
The employer withholding threshold of $200,000 applies regardless of the employee's filing status or household income for withholding purposes. Box 6 combines 1.45% regular and 0.9% Additional Medicare Tax withholding with no separate calculation on the form.
Health Coverage and Dependent Care Limits
Box 12 Code DD reports employer-sponsored health coverage cost as informational only and nontaxable to the employee for 2017. Code DD includes employer and employee contributions to health insurance but excludes certain expected benefits under regulations.
Box 10 threshold of $5,000 under the Section 125 cafeteria plan remains in effect for 2017 tax year filings. Amounts above $5,000 must be reported in Box 1 as taxable wages subject to withholding and employment taxes.
Elective Deferral Limits
401(k) deferrals reported with Code D are capped at $18,000 with an age 50+ catch-up of $6,000 for 2017. Section 403(b) special 15-year rule deferrals are permitted with higher limits under Publication 571 guidance for employees with qualifying service.
SIMPLE plan deferrals reported with Code S are limited to $12,500 with an age 50+ catch-up of $3,000. Make-up contributions for military service years require proper documentation to avoid excess deferral errors.
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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.
