What IRS Form W-2 (2017) Is For
IRS Form W-2 for 2017 reports an employee’s wages, total taxes withheld, and key wage and tax details. The wage and tax statement shows Social Security wages, Medicare wages, and employee Social Security tax for the year. Employers file the form with the Social Security Administration to keep the employee’s earnings history and Medicare tax withheld information accurate.
The form lists federal income tax withheld, state income tax, and local wages that affect an individual’s income tax return. Entries also show salary reduction agreement amounts, employee salary reduction contributions, and dependent care assistance program benefits. Employers include figures for uncollected Medicare tax and other adjustments that influence an employee’s final tax benefits.
When You’d Use IRS Form W-2 (2017)
A taxpayer uses Form W-2 when preparing a federal income tax return and verifying withheld amounts. The form lists wages paid, gross wages, taxable compensation, and other compensation that affect total federal income tax. A taxpayer also reviews employee business expense reimbursements and related deferred compensation entries.
The form helps employees confirm dependent care benefits, employer-sponsored health coverage, and employer identification number information shown in their records. Taxpayers compare Medicare wages, Social Security wages, and related Medicare entries with the pay information in their records. Taxpayers also review Social Security tax amounts, qualified equity grants, and uniform payments.
These entries support accurate reporting for household employers and allow a review of employer share amounts and union dues. They also confirm the employee’s address.
Key Rules or Details for 2017
Employers followed 2017 rules that governed retirement plan indicators, dependent care benefits reporting, and the Social Security wage base. They used the form to report wages, employees’ income, and employer contributions that supported accurate employee-reported entries. Employers also recorded designated Roth contributions and excess golden parachute payments when required.
The form reflected Medicare tax withheld, additional Medicare tax triggers, and wages subject to Social Security that supported future benefits. Employers included health savings account contributions, non-qualified plans, and group-term life insurance connected to the employee’s filing status. They also recorded nontaxable combat pay and information for any statutory employee.
Employers entered the employer identification number and total taxable wages for consistent reporting. They included details used by statutory employees and agricultural employers. These entries helped ensure all figures remained accurate across systems.
Step-by-Step (High Level)
- Step 1: The taxpayer reviews the wage and tax statement to confirm total wages, wages paid, Social Security wages, and Medicare wages.
- Step 2: A taxpayer compares the federal income tax withheld, Medicare taxes withheld, Social Security taxes withheld, and tax withheld with the final pay stub.
- Step 3: Taxpayers confirm elective deferrals, dependent care benefits, and employee salary reduction contributions so income tax entries match employer-reported amounts.
- Step 4: The taxpayer uses the accurate information to complete the federal income tax return and to match the entries with the relevant employment tax forms.
- Step 5: Employees keep the form in a secure place for future reference when they need to verify Social Security tax information or corrected wage updates.
These steps help taxpayers evaluate every entry with clarity and help them maintain consistency across reported wage information. The process supports accurate numbers for a taxpayer’s filing requirements. It strengthens the consistency of the wage information that appears on the final tax return.
Common Mistakes and How to Avoid Them
Many taxpayers have encountered delays when the required information was incomplete or inconsistent. Timely identification of these issues strengthens wage reporting and reduces avoidable IRS correspondence. Careful attention to each problem improves compliance and supports accurate record matching. Thorough preparation increases the reliability of every submission.
- Mismatched Employer Identification Number: Past filings have included EINs that did not match payroll records, and accurate filing requires confirmation of the exact EIN printed on the employer’s registered account before any form is submitted.
- Incorrect Wage Totals: Prior submissions have contained wage figures that differed from payroll summaries, and accurate submissions depend on a full comparison of each box with the year-end reports.
- Missing Required Statements: IRS reviews have identified filings submitted without supporting documents, and proper submission requires inclusion of all statements listed in the form instructions.
- Late Form Transmittals: Previous delays have resulted from forms submitted after the IRS deadline, and timely transmittal requires submission of all documents within the official filing window.
What Happens After You File
The Social Security Administration reviews the employee’s wages, Social Security tax amounts, Medicare wages, and Medicare taxes withheld after the employer files Form W-2. The agency updates the employee’s earnings record so reported wages remain accurate. This process supports correct reporting for noncash payments and third-party sick pay.
The IRS examines federal income tax withheld, taxes withheld, and employee salary reduction contributions shown on the form. The IRS also reviews total dependent care benefits, taxable cost entries, and employer contributions. These checks include information related to any non-qualified deferred compensation plan or non-qualified deferred compensation plans.
Business Services Online assists employers who must correct wage information and sick pay records. The system also supports updates for dependent care entries. These reviews protect the accuracy of each taxpayer’s wage and tax documentation and help employers understand the impact of business tax on their company's bottom line.
FAQs
How do I confirm my federal income tax withheld on Form W-2?
A taxpayer confirms federal income tax withheld by reviewing Box 2 and comparing the amount with the final year-end pay statement. The figure must match the total shown in payroll records for accurate reporting. This comparison ensures that the total wages subject to federal tax align with IRS expectations.
How do I correct an employer identification number error on my Form W-2?
A taxpayer corrects an employer identification number error by requesting an updated Form W-2c from the employer. The employer must file the corrected record with the Social Security Administration. This update ensures that reported totals, including non-qualified plans' report distributions, match official IRS records.
Where are adoption benefits listed on Form W-2 for the applicable tax year?
Adoption benefits appear in Box 12 with the code assigned to employer-provided assistance. The entry reflects qualified expenses connected to the program. This figure must align with employer payroll data to prevent mismatched totals.
How are dependent care benefits reported on Form W-2?
Dependent care benefits appear in Box 10 and reflect employer-provided reimbursements. The entry may include amounts connected to workplace programs and must match recorded payroll totals. This box supports accurate reporting of total wages subject to related tax rules.
When do I request a W-2c for errors involving medicaid waiver payments or Social Security tips?
A W-2c is required when medicaid waiver payments or Social Security tips were recorded inaccurately. The employer must correct the form to ensure that all totals align with payroll and IRS records. This correction maintains proper reporting for taxable cost and designated Roth contributions if included.
