Form W-2 (2023) Paper-Filing Checklist
Purpose and 2023 Tax Year Overview
Form W-2 reports 2023 wages, withheld federal/state/local income tax, Social Security and Medicare wages and taxes, and other compensation to employees and tax authorities. The 2023 elective deferral limit is $22,500 for 401(k), 403(b), and most 457 plans, with employees age 50 or older permitted an additional $7,500 catch-up contribution for a combined total of $30,000.
Updates to Additional Medicare Tax threshold guidance clarify employer withholding requirements based on wage thresholds rather than employee filing status. Proper completion ensures accurate reporting to SSA and state/local tax authorities while providing employees with documentation needed for individual income tax returns.
Employee Identification and Verification
Verify Employee SSN and Control Number Format
Ensure each employee's 9-digit SSN is complete and correct before printing Form W-2, and assign a unique control number in Box d per employee per employer within the year to prevent duplicate SSA filings. Cross-reference SSA records for name/SSN mismatches before issuing copies to avoid processing delays, rejected submissions, or employee tax return complications.
Wage and Compensation Reporting
Calculate Box 1 (Wages, Tips, Other Compensation)
Include all compensation subject to federal income tax withholding: salaries, wages, bonuses, taxable fringe benefits, and tips reported by employee during the 2023 calendar year, excluding employer-paid health insurance premiums reported under Box 12 code DD. Total wages in Box 1 must match payroll records for the entire calendar year without exception.
Report Box 2 (Federal Income Tax Withheld)
Enter total federal income tax withheld under 2023 withholding rules and tax tables, ensuring Box 2 shows only federal income tax withheld and excludes Social Security, Medicare, or RRTA taxes under any circumstances. Employees claim this amount as a payment credit on Form 1040 when calculating final tax owed or refund due.
Social Security and Medicare Tax Reporting
Complete Box 3 and Box 4 (Social Security Wages and Tax)
Report wages subject to Social Security tax up to the annual wage base for 2023 without exceeding this statutory cap, and show 6.2% tax withheld in Box 4 on the Box 3 amount. Employees who work for multiple employers during 2023 and exceed the combined wage base may claim excess Social Security tax as a credit on Form 1040.
Complete Box 5 and Box 6 (Medicare Wages and Tax)
Report all wages subject to Medicare tax in Box 5, as no wage base cap applies, and withhold 0.9% Additional Medicare Tax on wages exceeding $200,000 in a calendar year, regardless of filing status. Box 6 shows total Medicare tax withheld: 1.45% standard Medicare tax on all wages plus 0.9% Additional Medicare Tax on wages above $200,000.
Specialized Reporting Requirements
Report Box 8 (Allocated Tips if Applicable)
If the employer allocated tips to the employee under Internal Revenue Code Section 3121(q) rules, enter the allocated amount in Box 8 separately from reported tips. The employee must file Form 4137 with the income tax return to report actual tips received or allocated tips, whichever is larger, and compute Social Security/Medicare tax owed.
Allocated tips appear when reported tips fall below the employer's required allocation percentage for tipped employees. The employee bears responsibility for paying tax on unreported tip income through Form 4137 filing procedures.
Complete Box 10 (Dependent Care Benefits)
Report total dependent care benefits paid or incurred by the employer on the employee's behalf, including Section 125 cafeteria plan contributions during 2023. Any amount exceeding the employer plan limit must also be included in Box 1 as taxable wages subject to federal income tax withholding.
The employee uses this amount to complete Form 2441 and determine the excludable benefit amount, which is capped under IRS rules based on household income and filing status. Accurate reporting allows employees to claim any available dependent care tax credit on their individual returns.
Box 12 Codes and Deferral Limits
Report Box 12 Codes and 2023 Contribution Limits
- Report elective deferrals under codes D, E, F, G, S, Y, AA, BB, EE with applicable 2023 limits.
- Standard limit for Codes D, E, F, G (401(k), 403(b), SEP, 457(b)) is $22,500.
- SIMPLE plan limit (Code S) is $15,500 for 2023.
- Age 50+ employees may defer an additional $7,500 ($3,500 for SIMPLE plans).
- Code H deferrals to Section 501(c)(18)(D) tax-exempt organization plans have a $7,000 limit.
- Code DD shows the cost of employer-sponsored health coverage (informational, nontaxable).
Ensure total elective deferrals do not exceed applicable limits, as employees must include excess amounts in taxable income for the year. Verify all Box 12 codes align with plan documents and employee deferral elections made during the 2023 plan year.
Plan Participation and State/Local Reporting
Mark Retirement Plan Checkbox (Box 13)
Check the "Retirement plan" box if the employee was eligible to defer to a qualified plan, SIMPLE, SEP, or 403(b) during 2023, regardless of whether the employee actually made contributions. This checkbox affects the employee's ability to deduct traditional IRA contributions based on Modified Adjusted Gross Income thresholds established for the tax year.
Absence of the check indicates no plan coverage, allowing full IRA deduction eligibility up to contribution limits.
Complete State/Local Reporting (Boxes 15–20)
Enter state EIN, state wages/tips, and state income tax withheld in Boxes 15 through 17 for each state where the employee worked or resides, and complete Boxes 18 through 20 with local wages, tips, income tax withheld, and locality name if applicable. Ensure state and local amounts align with payroll records and any reciprocal agreement withholding rules between jurisdictions.
Distribution and Record Retention
Assemble Copies Correctly for Distribution
Prepare Copy A using the scannable official form from the IRS (not downloaded or printed from the website) with Form W-3 for SSA submission. Distribute Copy B (federal) to the employee with required notice; Copy C (employee's records) to the employee; Copy 2 (state/local) to the employee and applicable state/local tax departments by January 31, 2024.
SSA cannot process non-scannable copies, so employers must order official Copy A forms directly from the IRS. Proper copy distribution ensures compliance with federal and state reporting deadlines and prevents penalties.
Verify Copy D Retention and Form W-3 Reconciliation
Retain Copy D (employer records) for at least 4 years after the due date of the return or the date the tax was paid, whichever is later. Complete Form W-3 showing aggregate totals of all employees' W-2s for Boxes 1 through 6, 12, 14, 16 through 17, and 18 through 19, and mail with Copy A to SSA by January 31, 2024.
Ensure Form W-3 totals match the sum of individual W-2s filed to prevent SSA rejection or reconciliation delays.
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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.
