Tax Forms

The amount in Box 1 can be unlimited but the amount in Box 3 and 7 should never exceed $ 106,800 in 2011. Also;
Elective salary deferrals to a 401(k), 403(b) Simple, Salary reduction SEP as well as payments of adoption expenses and deferred amounts under a nonqualified plan or 457 plan are included in Box 3 and not in Box 1 Taxable wages.

If you worked in a restaurant employing 10 or more people, your employer will report in Box 8 your share of taxable tip income.
The amount in Box 8 is includable in Form 1040 Line 7.

Reimbursements from your employer and the value of employer care services are included in Box 10
Generally, amounts up to $5,000 are tax free and the excess over $5,000 are included on Form 1040 line 7 as taxable wages.

Elective deferrals from retirement plans and adjustments or deductions are listed with a code and an amount in Box 12.
CODES:
A = Uncollected SS or RRTA tax on tips
B = Uncollected Medicare tax on tips
C = Taxable cost of group life insurance over 50K
D through H,S,AA,BB,EE = Elective Deferrals and Roth contributions
J = Nontaxable sick pay
K = 20% excise tax on golden paachute payments
L = Employee business expense reimbursements
M = Uncollected SS or RRTA tax on life insurance
N = Uncollected Medicare tax on life insurance
P =excludable moving expense reimbursements
Q =Nontaxable combat pay
R = Employer contributions to Archer MSA
S = salary reduction under 408(p) Simple
T = Adoption benefits
V= income from stock option
W = HSA employer contribution
Y = 409A deferral
Z = 409A income
AA = Roth contribution under 401(k)
BB =Roth contribution under 403(b)
DD = employer health coverage
EE =Roth contribution under 457(b)

Taxable fringe benefits and miscellaneous payments are listed in box 14.

W-2 forms should be furnished to your employees by January 31. It is your responsibility as an employer to file Forms W-2 with the Social Security Administration (SSA) for your employees which will show the wages paid and taxes withheld for the year.
You must send Copy A to the SSA with Form W-3 by February 28.
Form W-3 is a summary form that shows the total of all W-2's being sent. Go to the IRS website or get Publication 15, Circular E, Employer's Tax Guide or Forms and publications can be requested by calling 1-800-829-3676.

If you cannot get a duplicate W-2 from your employer, your local CPA can use Form 4852, substitute W-2 to reconstruct your salary and use it for your tax return.
A copy of Form 4852 should be sent to the Social Security Administration to help ensure proper credit of the Social Security taxes.

The codes identify the type of distribution, and whether a Form 5329 penalty is required. Code 1 identifies the distribution as an early distribution with no known exceptions subject to the 10% IRS Form 5329 penalty. Code 2 = early distribution but a exception applies and no penalty lis levied. Code 3 = Disability and no penalty required. Code 4 = Death and no penalty required. Code 5 = Prohibited transaction. Code 6 = Section 1035 tax free exchange. Code 7 = Normal distribution and no penalty required. Code 8 = Excess contribution. Code 9 = Cost of current life insurance protection.. Code A = May be eligible for 5 or 10 year averaging. Code B =designated Roth account distribution. E—Distributions under Employee Plans Compliance Resolution System (EPCRS). F—Charitable gift annuity.G—Direct rollover and rollover contribution. H—Direct rollover of a designated Roth account distribution to a Roth IRA.J—Early distribution from a Roth IRA.L—Loans treated as deemed distributions under section 72(p).N—Recharacterized IRA contribution made for 2011. P—Excess contributions plus earnings/excess deferrals taxable in 2010. Q—Qualified distribution from a Roth IRA. R—Recharacterized IRA contribution made for 2010. S—Early distribution from a SIMPLE IRA in the first 2 years, no known exception. T—Roth IRA distribution, exception applies. U—Dividends distributed from an ESOP under section 404(k). W—Charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements. 5329.

Use Form 1096 to summarize and transmit all types of 1099 forms (copy A) to the IRS on or before the last day in February of the following calendar year.
In 2013, Only RED copies of Forms 1096 and 1099 are acceptable.

Answer Provided by: CPAdirectory