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How Do I File Back Taxes

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How Do I File Back Taxes

How do i file back taxes Publication 15 - Main Content Table of Contents 1. How do i file back taxes Employer Identification Number (EIN) 2. How do i file back taxes Who Are Employees?Relief provisions. How do i file back taxes Business Owned and Operated by Spouses 3. How do i file back taxes Family Employees 4. How do i file back taxes Employee's Social Security Number (SSN)Registering for SSNVS. How do i file back taxes 5. How do i file back taxes Wages and Other CompensationAccountable plan. How do i file back taxes Nonaccountable plan. How do i file back taxes Per diem or other fixed allowance. How do i file back taxes 50% test. How do i file back taxes Health Savings Accounts and medical savings accounts. How do i file back taxes Nontaxable fringe benefits. How do i file back taxes When fringe benefits are treated as paid. How do i file back taxes Valuation of fringe benefits. How do i file back taxes Withholding on fringe benefits. How do i file back taxes Depositing taxes on fringe benefits. How do i file back taxes 6. How do i file back taxes TipsOrdering rule. How do i file back taxes 7. How do i file back taxes Supplemental Wages 8. How do i file back taxes Payroll Period 9. How do i file back taxes Withholding From Employees' WagesIncome Tax Withholding Social Security and Medicare Taxes Part-Time Workers 10. How do i file back taxes Required Notice to Employees About the Earned Income Credit (EIC) 11. How do i file back taxes Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties 12. How do i file back taxes Filing Form 941 or Form 944 13. How do i file back taxes Reporting Adjustments to Form 941 or Form 944Current Period Adjustments Prior Period Adjustments Wage Repayments 14. How do i file back taxes Federal Unemployment (FUTA) TaxSuccessor employer. How do i file back taxes Household employees. How do i file back taxes When to deposit. How do i file back taxes Household employees. How do i file back taxes Electronic filing by reporting agents. How do i file back taxes 16. How do i file back taxes How To Use the Income Tax Withholding TablesWage Bracket Method Percentage Method Alternative Methods of Income Tax Withholding How To Get Tax Help 1. How do i file back taxes Employer Identification Number (EIN) If you are required to report employment taxes or give tax statements to employees or annuitants, you need an EIN. How do i file back taxes The EIN is a nine-digit number the IRS issues. How do i file back taxes The digits are arranged as follows: 00-0000000. How do i file back taxes It is used to identify the tax accounts of employers and certain others who have no employees. How do i file back taxes Use your EIN on all of the items you send to the IRS and SSA. How do i file back taxes For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN. How do i file back taxes If you do not have an EIN, you may apply for one online. How do i file back taxes Go to the IRS. How do i file back taxes gov and click on the Apply for an EIN Online link under Tools. How do i file back taxes You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. How do i file back taxes Do not use an SSN in place of an EIN. How do i file back taxes You should have only one EIN. How do i file back taxes If you have more than one and are not sure which one to use, call 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). How do i file back taxes Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. How do i file back taxes The IRS will tell you which number to use. How do i file back taxes If you took over another employer's business (see Successor employer in section 9), do not use that employer's EIN. How do i file back taxes If you have applied for an EIN but do not have your EIN by the time a return is due, file a paper return and write “Applied For” and the date you applied for it in the space shown for the number. How do i file back taxes 2. How do i file back taxes Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. How do i file back taxes See Publication 15-A for details on statutory employees and nonemployees. How do i file back taxes Employee status under common law. How do i file back taxes   Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. How do i file back taxes This is so even when you give the employee freedom of action. How do i file back taxes What matters is that you have the right to control the details of how the services are performed. How do i file back taxes See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. How do i file back taxes   Generally, people in business for themselves are not employees. How do i file back taxes For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. How do i file back taxes However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. How do i file back taxes   If an employer-employee relationship exists, it does not matter what it is called. How do i file back taxes The employee may be called an agent or independent contractor. How do i file back taxes It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. How do i file back taxes Statutory employees. How do i file back taxes   If someone who works for you is not an employee under the common law rules discussed earlier, do not withhold federal income tax from his or her pay, unless backup withholding applies. How do i file back taxes Although the following persons may not be common law employees, they are considered employees by statute for social security, Medicare, and FUTA tax purposes under certain conditions. How do i file back taxes An agent (or commission) driver who delivers food, beverages (other than milk), laundry, or dry cleaning for someone else. How do i file back taxes A full-time life insurance salesperson who sells primarily for one company. How do i file back taxes A homeworker who works by guidelines of the person for whom the work is done, with materials furnished by and returned to that person or to someone that person designates. How do i file back taxes A traveling or city salesperson (other than an agent-driver or commission-driver) who works full time (except for sideline sales activities) for one firm or person getting orders from customers. How do i file back taxes The orders must be for merchandise for resale or supplies for use in the customer's business. How do i file back taxes The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. How do i file back taxes    Statutory nonemployees. How do i file back taxes   Direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. How do i file back taxes They are generally treated as self-employed for all federal tax purposes, including income and employment taxes. How do i file back taxes H-2A agricultural workers. How do i file back taxes   On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. How do i file back taxes Treating employees as nonemployees. How do i file back taxes   You will generally be liable for social security and Medicare taxes and withheld income tax if you do not deduct and withhold these taxes because you treated an employee as a nonemployee. How do i file back taxes You may be able to calculate your liability using special section 3509 rates for the employee share of social security and Medicare taxes and the federal income tax withholding. How do i file back taxes The applicable rates depend on whether you filed required Forms 1099. How do i file back taxes You cannot recover the employee share of social security, or Medicare tax, or income tax withholding from the employee if the tax is paid under section 3509. How do i file back taxes You are liable for the income tax withholding regardless of whether the employee paid income tax on the wages. How do i file back taxes You continue to owe the full employer share of social security and Medicare taxes. How do i file back taxes The employee remains liable for the employee share of social security and Medicare taxes. How do i file back taxes See Internal Revenue Code section 3509 for details. How do i file back taxes Also see the Instructions for Form 941-X. How do i file back taxes   Section 3509 rates are not available if you intentionally disregard the requirement to withhold taxes from the employee or if you withheld income taxes but not social security or Medicare taxes. How do i file back taxes Section 3509 is not available for reclassifying statutory employees. How do i file back taxes See Statutory employees , earlier in this section. How do i file back taxes   If the employer issued required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. How do i file back taxes 2% plus 20% of the employee rate (see the Instructions for Form 941-X). How do i file back taxes For Medicare taxes; employer rate of 1. How do i file back taxes 45% plus 20% of the employee rate of 1. How do i file back taxes 45%, for a total rate of 1. How do i file back taxes 74% of wages. How do i file back taxes For Additional Medicare Tax; 0. How do i file back taxes 18% (20% of the employee rate of 0. How do i file back taxes 9%) of wages subject to Additional Medicare Tax. How do i file back taxes For income tax withholding, the rate is 1. How do i file back taxes 5% of wages. How do i file back taxes   If the employer did not issue required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. How do i file back taxes 2% plus 40% of the employee rate (see the Instructions for Form 941-X). How do i file back taxes For Medicare taxes; employer rate of 1. How do i file back taxes 45% plus 40% of the employee rate of 1. How do i file back taxes 45%, for a total rate of 2. How do i file back taxes 03% of wages. How do i file back taxes For Additional Medicare Tax; 0. How do i file back taxes 36% (40% of the employee rate of 0. How do i file back taxes 9%) of wages subject to Additional Medicare Tax. How do i file back taxes For income tax withholding, the rate is 3. How do i file back taxes 0% of wages. How do i file back taxes Relief provisions. How do i file back taxes   If you have a reasonable basis for not treating a worker as an employee, you may be relieved from having to pay employment taxes for that worker. How do i file back taxes To get this relief, you must file all required federal tax returns, including information returns, on a basis consistent with your treatment of the worker. How do i file back taxes You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. How do i file back taxes See Publication 1976, Do You Qualify for Relief Under Section 530. How do i file back taxes IRS help. How do i file back taxes   If you want the IRS to determine whether a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. How do i file back taxes Voluntary Classification Settlement Program (VCSP). How do i file back taxes   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. How do i file back taxes To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). How do i file back taxes For more information visit IRS. How do i file back taxes gov and enter “VCSP” in the search box. How do i file back taxes Business Owned and Operated by Spouses If you and your spouse jointly own and operate a business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. How do i file back taxes See Publication 541, Partnerships, for more details. How do i file back taxes The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. How do i file back taxes Exception—Qualified joint venture. How do i file back taxes   For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a “qualified joint venture,” whose only members are spouses filing a joint income tax return, can elect not to be treated as a partnership for federal tax purposes. How do i file back taxes A qualified joint venture conducts a trade or business where: The only members of the joint venture are spouses who file a joint income tax return, Both spouses materially participate (see Material participation in the Instructions for Schedule C (Form 1040), line G) in the trade or business (mere joint ownership of property is not enough), Both spouses elect to not be treated as a partnership, and The business is co-owned by both spouses and is not held in the name of a state law entity such as a partnership or limited liability company (LLC). How do i file back taxes   To make the election, all items of income, gain, loss, deduction, and credit must be divided between the spouses, in accordance with each spouse's interest in the venture, and reported on separate Schedules C or F as sole proprietors. How do i file back taxes Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. How do i file back taxes   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. How do i file back taxes If employment taxes are owed by the qualified joint venture, either spouse may report and pay the employment taxes due on the wages paid to the employees using the EIN of that spouse's sole proprietorship. How do i file back taxes Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. How do i file back taxes However, it gives each spouse credit for social security earnings on which retirement benefits are based and for Medicare coverage without filing a partnership return. How do i file back taxes    Note. How do i file back taxes If your spouse is your employee, not your partner, see One spouse employed by another in section 3. How do i file back taxes   For more information on qualified joint ventures, visit IRS. How do i file back taxes gov and enter “qualified joint venture” in the search box. How do i file back taxes Exception—Community income. How do i file back taxes   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. How do i file back taxes S. How do i file back taxes possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. How do i file back taxes You may still make an election to be taxed as a qualified joint venture instead of a partnership. How do i file back taxes See Exception—Qualified joint venture , earlier. How do i file back taxes 3. How do i file back taxes Family Employees Child employed by parents. How do i file back taxes   Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child. How do i file back taxes If these payments are for work other than in a trade or business, such as domestic work in the parent's private home, they are not subject to social security and Medicare taxes until the child reaches age 21. How do i file back taxes However, see Covered services of a child or spouse , later in this section. How do i file back taxes Payments for the services of a child under age 21 who works for his or her parent, whether or not in a trade or business, are not subject to FUTA tax. How do i file back taxes Payments for the services of a child of any age who works for his or her parent are generally subject to income tax withholding unless the payments are for domestic work in the parent's home, or unless the payments are for work other than in a trade or business and are less than $50 in the quarter or the child is not regularly employed to do such work. How do i file back taxes One spouse employed by another. How do i file back taxes   The wages for the services of an individual who works for his or her spouse in a trade or business are subject to income tax withholding and social security and Medicare taxes, but not to FUTA tax. How do i file back taxes However, the payments for services of one spouse employed by another in other than a trade or business, such as domestic service in a private home, are not subject to social security, Medicare, and FUTA taxes. How do i file back taxes Covered services of a child or spouse. How do i file back taxes   The wages for the services of a child or spouse are subject to income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for: A corporation, even if it is controlled by the child's parent or the individual's spouse; A partnership, even if the child's parent is a partner, unless each partner is a parent of the child; A partnership, even if the individual's spouse is a partner; or An estate, even if it is the estate of a deceased parent. How do i file back taxes Parent employed by son or daughter. How do i file back taxes   When the employer is a son or daughter employing his or her parent the following rules apply. How do i file back taxes Payments for the services of a parent in the son’s or daughter’s (the employer’s) trade or business are subject to income tax withholding and social security and Medicare taxes. How do i file back taxes Payments for the services of a parent not in the son’s or daughter’s (the employer’s) trade or business are generally not subject to social security and Medicare taxes. How do i file back taxes    Social security and Medicare taxes do apply to payments made to a parent for domestic services if all of the following apply: The parent is employed by his or her son or daughter; The son or daughter (the employer) has a child or stepchild living in the home; The son or daughter (the employer) is a widow or widower, divorced, or living with a spouse who, because of a mental or physical condition, cannot care for the child or stepchild for at least 4 continuous weeks in a calendar quarter; and The child or stepchild is either under age 18 or requires the personal care of an adult for at least 4 continuous weeks in a calendar quarter due to a mental or physical condition. How do i file back taxes   Payments made to a parent employed by his or her child are not subject to FUTA tax, regardless of the type of services provided. How do i file back taxes 4. How do i file back taxes Employee's Social Security Number (SSN) You are required to get each employee's name and SSN and to enter them on Form W-2. How do i file back taxes This requirement also applies to resident and nonresident alien employees. How do i file back taxes You should ask your employee to show you his or her social security card. How do i file back taxes The employee may show the card if it is available. How do i file back taxes Do not accept a social security card that says “Not valid for employment. How do i file back taxes ” A social security number issued with this legend does not permit employment. How do i file back taxes You may, but are not required to, photocopy the social security card if the employee provides it. How do i file back taxes If you do not provide the correct employee name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. How do i file back taxes See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. How do i file back taxes Applying for a social security card. How do i file back taxes   Any employee who is legally eligible to work in the United States and does not have a social security card can get one by completing Form SS-5, Application for a Social Security Card, and submitting the necessary documentation. How do i file back taxes You can get Form SS-5 at SSA offices, by calling 1-800-772-1213, or from the SSA website at www. How do i file back taxes socialsecurity. How do i file back taxes gov/online/ss-5. How do i file back taxes html. How do i file back taxes The employee must complete and sign Form SS-5; it cannot be filed by the employer. How do i file back taxes You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. How do i file back taxes Applying for a social security number. How do i file back taxes   If you file Form W-2 on paper and your employee applied for an SSN but does not have one when you must file Form W-2, enter “Applied For” on the form. How do i file back taxes If you are filing electronically, enter all zeros (000-00-000) in the social security number field. How do i file back taxes When the employee receives the SSN, file Copy A of Form W-2c, Corrected Wage and Tax Statement, with the SSA to show the employee's SSN. How do i file back taxes Furnish copies B, C, and 2 of Form W-2c to the employee. How do i file back taxes Up to 25 Forms W-2c for each Form W-3c, Transmittal of Corrected Wage and Tax Statements, may now be filed per session over the Internet, with no limit on the number of sessions. How do i file back taxes For more information, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. How do i file back taxes socialsecurity. How do i file back taxes gov/employer. How do i file back taxes Advise your employee to correct the SSN on his or her original Form W-2. How do i file back taxes Correctly record the employee's name and SSN. How do i file back taxes   Record the name and number of each employee as they are shown on the employee's social security card. How do i file back taxes If the employee's name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. How do i file back taxes Continue to report the employee's wages under the old name until the employee shows you an updated social security card with the new name. How do i file back taxes If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported for the most recently filed Form W-2. How do i file back taxes It is not necessary to correct other years if the previous name and number were used for years before the most recent Form W-2. How do i file back taxes IRS individual taxpayer identification numbers (ITINs) for aliens. How do i file back taxes   Do not accept an ITIN in place of an SSN for employee identification or for work. How do i file back taxes An ITIN is only available to resident and nonresident aliens who are not eligible for U. How do i file back taxes S. How do i file back taxes employment and need identification for other tax purposes. How do i file back taxes You can identify an ITIN because it is a nine-digit number, beginning with the number “9” with either a “7” or “8” as the fourth digit and is formatted like an SSN (for example, 9NN-7N-NNNN). How do i file back taxes    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. How do i file back taxes If the individual is currently eligible to work in the United States, instruct the individual to apply for an SSN and follow the instructions under Applying for a social security number, earlier. How do i file back taxes Do not use an ITIN in place of an SSN on Form W-2. How do i file back taxes Verification of social security numbers. How do i file back taxes   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive the results the next business day. How do i file back taxes Visit www. How do i file back taxes socialsecurity. How do i file back taxes gov/employer/ssnv. How do i file back taxes htm for more information. How do i file back taxes Registering for SSNVS. How do i file back taxes   You must register online and receive authorization from your employer to use SSNVS. How do i file back taxes To register, visit SSA's website at www. How do i file back taxes ssa. How do i file back taxes gov/employer and click on the Business Services Online link. How do i file back taxes Follow the registration instructions to obtain a user identification (ID) and password. How do i file back taxes You will need to provide the following information about yourself and your company. How do i file back taxes Name. How do i file back taxes SSN. How do i file back taxes Date of birth. How do i file back taxes Type of employer. How do i file back taxes EIN. How do i file back taxes Company name, address, and telephone number. How do i file back taxes Email address. How do i file back taxes   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. How do i file back taxes You must enter the activation code online to use SSNVS. How do i file back taxes 5. How do i file back taxes Wages and Other Compensation Wages subject to federal employment taxes generally include all pay you give to an employee for services performed. How do i file back taxes The pay may be in cash or in other forms. How do i file back taxes It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. How do i file back taxes It does not matter how you measure or make the payments. How do i file back taxes Amounts an employer pays as a bonus for signing or ratifying a contract in connection with the establishment of an employer-employee relationship and an amount paid to an employee for cancellation of an employment contract and relinquishment of contract rights are wages subject to social security, Medicare, and FUTA taxes and income tax withholding. How do i file back taxes Also, compensation paid to a former employee for services performed while still employed is wages subject to employment taxes. How do i file back taxes More information. How do i file back taxes   See section 6 for a discussion of tips and section 7 for a discussion of supplemental wages. How do i file back taxes Also, see section 15 for exceptions to the general rules for wages. How do i file back taxes Publication 15-A provides additional information on wages, including nonqualified deferred compensation, and other compensation. How do i file back taxes Publication 15-B provides information on other forms of compensation, including: Accident and health benefits, Achievement awards, Adoption assistance, Athletic facilities, De minimis (minimal) benefits, Dependent care assistance, Educational assistance, Employee discounts, Employee stock options, Employer-provided cell phones, Group-term life insurance coverage, Health Savings Accounts, Lodging on your business premises, Meals, Moving expense reimbursements, No-additional-cost services, Retirement planning services, Transportation (commuting) benefits, Tuition reduction, and Working condition benefits. How do i file back taxes Employee business expense reimbursements. How do i file back taxes   A reimbursement or allowance arrangement is a system by which you pay the advances, reimbursements, and charges for your employees' business expenses. How do i file back taxes How you report a reimbursement or allowance amount depends on whether you have an accountable or a nonaccountable plan. How do i file back taxes If a single payment includes both wages and an expense reimbursement, you must specify the amount of the reimbursement. How do i file back taxes   These rules apply to all ordinary and necessary employee business expenses that would otherwise qualify for a deduction by the employee. How do i file back taxes Accountable plan. How do i file back taxes   To be an accountable plan, your reimbursement or allowance arrangement must require your employees to meet all three of the following rules. How do i file back taxes They must have paid or incurred deductible expenses while performing services as your employees. How do i file back taxes The reimbursement or advance must be paid for the expense and must not be an amount that would have otherwise been paid by the employee. How do i file back taxes They must substantiate these expenses to you within a reasonable period of time. How do i file back taxes They must return any amounts in excess of substantiated expenses within a reasonable period of time. How do i file back taxes   Amounts paid under an accountable plan are not wages and are not subject to income, social security, Medicare, and FUTA taxes. How do i file back taxes   If the expenses covered by this arrangement are not substantiated (or amounts in excess of substantiated expenses are not returned within a reasonable period of time), the amount paid under the arrangement in excess of the substantiated expenses is treated as paid under a nonaccountable plan. How do i file back taxes This amount is subject to income, social security, Medicare, and FUTA taxes for the first payroll period following the end of the reasonable period of time. How do i file back taxes   A reasonable period of time depends on the facts and circumstances. How do i file back taxes Generally, it is considered reasonable if your employees receive their advance within 30 days of the time they incur the expenses, adequately account for the expenses within 60 days after the expenses were paid or incurred, and return any amounts in excess of expenses within 120 days after the expenses were paid or incurred. How do i file back taxes Also, it is considered reasonable if you give your employees a periodic statement (at least quarterly) that asks them to either return or adequately account for outstanding amounts and they do so within 120 days. How do i file back taxes Nonaccountable plan. How do i file back taxes   Payments to your employee for travel and other necessary expenses of your business under a nonaccountable plan are wages and are treated as supplemental wages and subject to income, social security, Medicare, and FUTA taxes. How do i file back taxes Your payments are treated as paid under a nonaccountable plan if: Your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation, You advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount he or she does not use for business expenses, You advance or pay an amount to your employee regardless of whether you reasonably expect the employee to have business expenses related to your business, or You pay an amount as a reimbursement you would have otherwise paid as wages. How do i file back taxes   See section 7 for more information on supplemental wages. How do i file back taxes Per diem or other fixed allowance. How do i file back taxes   You may reimburse your employees by travel days, miles, or some other fixed allowance under the applicable revenue procedure. How do i file back taxes In these cases, your employee is considered to have accounted to you if your reimbursement does not exceed rates established by the Federal Government. How do i file back taxes The 2013 standard mileage rate for auto expenses was 56. How do i file back taxes 5 cents per mile. How do i file back taxes The rate for 2014 is 56 cents per mile. How do i file back taxes   The government per diem rates for meals and lodging in the continental United States are listed in Publication 1542, Per Diem Rates. How do i file back taxes Other than the amount of these expenses, your employees' business expenses must be substantiated (for example, the business purpose of the travel or the number of business miles driven). How do i file back taxes   If the per diem or allowance paid exceeds the amounts substantiated, you must report the excess amount as wages. How do i file back taxes This excess amount is subject to income tax withholding and payment of social security, Medicare, and FUTA taxes. How do i file back taxes Show the amount equal to the substantiated amount (for example, the nontaxable portion) in box 12 of Form W-2 using code “L. How do i file back taxes ” Wages not paid in money. How do i file back taxes   If in the course of your trade or business you pay your employees in a medium that is neither cash nor a readily negotiable instrument, such as a check, you are said to pay them “in kind. How do i file back taxes ” Payments in kind may be in the form of goods, lodging, food, clothing, or services. How do i file back taxes Generally, the fair market value of such payments at the time they are provided is subject to federal income tax withholding and social security, Medicare, and FUTA taxes. How do i file back taxes   However, noncash payments for household work, agricultural labor, and service not in the employer's trade or business are exempt from social security, Medicare, and FUTA taxes. How do i file back taxes Withhold income tax on these payments only if you and the employee agree to do so. How do i file back taxes Nonetheless, noncash payments for agricultural labor, such as commodity wages, are treated as cash payments subject to employment taxes if the substance of the transaction is a cash payment. How do i file back taxes Moving expenses. How do i file back taxes   Reimbursed and employer-paid qualified moving expenses (those that would otherwise be deductible by the employee) paid under an accountable plan are not includible in an employee's income unless you have knowledge the employee deducted the expenses in a prior year. How do i file back taxes Reimbursed and employer-paid nonqualified moving expenses are includible in income and are subject to employment taxes and income tax withholding. How do i file back taxes For more information on moving expenses, see Publication 521, Moving Expenses. How do i file back taxes Meals and lodging. How do i file back taxes   The value of meals is not taxable income and is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the meals are furnished for the employer's convenience and on the employer's premises. How do i file back taxes The value of lodging is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the lodging is furnished for the employer's convenience, on the employer's premises, and as a condition of employment. How do i file back taxes    “For the convenience of the employer” means you have a substantial business reason for providing the meals and lodging other than to provide additional compensation to the employee. How do i file back taxes For example, meals you provide at the place of work so that an employee is available for emergencies during his or her lunch period are generally considered to be for your convenience. How do i file back taxes   However, whether meals or lodging are provided for the convenience of the employer depends on all of the facts and circumstances. How do i file back taxes A written statement that the meals or lodging are for your convenience is not sufficient. How do i file back taxes 50% test. How do i file back taxes   If over 50% of the employees who are provided meals on an employer's business premises receive these meals for the convenience of the employer, all meals provided on the premises are treated as furnished for the convenience of the employer. How do i file back taxes If this 50% test is met, the value of the meals is excludable from income for all employees and is not subject to federal income tax withholding or employment taxes. How do i file back taxes For more information, see Publication 15-B. How do i file back taxes Health insurance plans. How do i file back taxes   If you pay the cost of an accident or health insurance plan for your employees, including an employee's spouse and dependents, your payments are not wages and are not subject to social security, Medicare, and FUTA taxes, or federal income tax withholding. How do i file back taxes Generally, this exclusion also applies to qualified long-term care insurance contracts. How do i file back taxes However, for income tax withholding, the value of health insurance benefits must be included in the wages of S corporation employees who own more than 2% of the S corporation (2% shareholders). How do i file back taxes For social security, Medicare, and FUTA taxes, the health insurance benefits are excluded from the wages only for employees and their dependents or for a class or classes of employees and their dependents. How do i file back taxes See Announcement 92-16 for more information. How do i file back taxes You can find Announcement 92-16 on page 53 of Internal Revenue Bulletin 1992-5. How do i file back taxes Health Savings Accounts and medical savings accounts. How do i file back taxes   Your contributions to an employee's Health Savings Account (HSA) or Archer medical savings account (MSA) are not subject to social security, Medicare, or FUTA taxes, or federal income tax withholding if it is reasonable to believe at the time of payment of the contributions they will be excludable from the income of the employee. How do i file back taxes To the extent it is not reasonable to believe they will be excludable, your contributions are subject to these taxes. How do i file back taxes Employee contributions to their HSAs or MSAs through a payroll deduction plan must be included in wages and are subject to social security, Medicare, and FUTA taxes and income tax withholding. How do i file back taxes However, HSA contributions made under a salary reduction arrangement in a section 125 cafeteria plan are not wages and are not subject to employment taxes or withholding. How do i file back taxes For more information, see the Instructions for Form 8889, Health Savings Accounts (HSAs). How do i file back taxes Medical care reimbursements. How do i file back taxes   Generally, medical care reimbursements paid for an employee under an employer's self-insured medical reimbursement plan are not wages and are not subject to social security, Medicare, and FUTA taxes, or income tax withholding. How do i file back taxes See Publication 15-B for an exception for highly compensated employees. How do i file back taxes Differential wage payments. How do i file back taxes   Differential wage payments are any payments made by an employer to an individual for a period during which the individual is performing service in the uniformed services while on active duty for a period of more than 30 days and represent all or a portion of the wages the individual would have received from the employer if the individual were performing services for the employer. How do i file back taxes   Differential wage payments are wages for income tax withholding, but are not subject to social security, Medicare, or FUTA taxes. How do i file back taxes Employers should report differential wage payments in box 1 of Form W-2. How do i file back taxes For more information about the tax treatment of differential wage payments, visit IRS. How do i file back taxes gov and enter “employees in a combat zone” in the search box. How do i file back taxes Fringe benefits. How do i file back taxes   You generally must include fringe benefits in an employee's gross income (but see Nontaxable fringe benefits next). How do i file back taxes The benefits are subject to income tax withholding and employment taxes. How do i file back taxes Fringe benefits include cars you provide, flights on aircraft you provide, free or discounted commercial flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. How do i file back taxes In general, the amount you must include is the amount by which the fair market value of the benefits is more than the sum of what the employee paid for it plus any amount the law excludes. How do i file back taxes There are other special rules you and your employees may use to value certain fringe benefits. How do i file back taxes See Publication 15-B for more information. How do i file back taxes Nontaxable fringe benefits. How do i file back taxes   Some fringe benefits are not taxable (or are minimally taxable) if certain conditions are met. How do i file back taxes See Publication 15-B for details. How do i file back taxes The following are some examples of nontaxable fringe benefits. How do i file back taxes Services provided to your employees at no additional cost to you. How do i file back taxes Qualified employee discounts. How do i file back taxes Working condition fringes that are property or services the employee could deduct as a business expense if he or she had paid for it. How do i file back taxes Examples include a company car for business use and subscriptions to business magazines. How do i file back taxes Certain minimal value fringes (including an occasional cab ride when an employee must work overtime and meals you provide at eating places you run for your employees if the meals are not furnished at below cost). How do i file back taxes Qualified transportation fringes subject to specified conditions and dollar limitations (including transportation in a commuter highway vehicle, any transit pass, and qualified parking). How do i file back taxes Qualified moving expense reimbursement. How do i file back taxes See Moving expenses , earlier in this section, for details. How do i file back taxes The use of on-premises athletic facilities, if substantially all of the use is by employees, their spouses, and their dependent children. How do i file back taxes Qualified tuition reduction an educational organization provides to its employees for education. How do i file back taxes For more information, see Publication 970, Tax Benefits for Education. How do i file back taxes Employer-provided cell phones provided primarily for a noncompensatory business reason. How do i file back taxes   However, do not exclude the following fringe benefits from the income of highly compensated employees unless the benefit is available to other employees on a nondiscriminatory basis. How do i file back taxes No-additional-cost services. How do i file back taxes Qualified employee discounts. How do i file back taxes Meals provided at an employer operated eating facility. How do i file back taxes Reduced tuition for education. How do i file back taxes  For more information, including the definition of a highly compensated employee, see Publication 15-B. How do i file back taxes When fringe benefits are treated as paid. How do i file back taxes   You may choose to treat certain noncash fringe benefits as paid by the pay period, by the quarter, or on any other basis you choose as long as you treat the benefits as paid at least once a year. How do i file back taxes You do not have to make a formal choice of payment dates or notify the IRS of the dates you choose. How do i file back taxes You do not have to make this choice for all employees. How do i file back taxes You may change methods as often as you like, as long as you treat all benefits provided in a calendar year as paid by December 31 of the calendar year. How do i file back taxes See Publication 15-B for more information, including a discussion of the special accounting rule for fringe benefits provided during November and December. How do i file back taxes Valuation of fringe benefits. How do i file back taxes   Generally, you must determine the value of fringe benefits no later than January 31 of the next year. How do i file back taxes Before January 31, you may reasonably estimate the value of the fringe benefits for purposes of withholding and depositing on time. How do i file back taxes Withholding on fringe benefits. How do i file back taxes   You may add the value of fringe benefits to regular wages for a payroll period and figure withholding taxes on the total, or you may withhold federal income tax on the value of the fringe benefits at the optional flat 25% supplemental wage rate. How do i file back taxes However, see Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages during the calendar year in section 7. How do i file back taxes   You may choose not to withhold income tax on the value of an employee's personal use of a vehicle you provide. How do i file back taxes You must, however, withhold social security and Medicare taxes on the use of the vehicle. How do i file back taxes See Publication 15-B for more information on this election. How do i file back taxes Depositing taxes on fringe benefits. How do i file back taxes   Once you choose when fringe benefits are paid, you must deposit taxes in the same deposit period you treat the fringe benefits as paid. How do i file back taxes To avoid a penalty, deposit the taxes following the general deposit rules for that deposit period. How do i file back taxes   If you determine by January 31 you overestimated the value of a fringe benefit at the time you withheld and deposited for it, you may claim a refund for the overpayment or have it applied to your next employment tax return. How do i file back taxes See Valuation of fringe benefits , earlier. How do i file back taxes If you underestimated the value and deposited too little, you may be subject to a failure-to-deposit penalty. How do i file back taxes See section 11 for information on deposit penalties. How do i file back taxes   If you deposited the required amount of taxes but withheld a lesser amount from the employee, you can recover from the employee the social security, Medicare, or income taxes you deposited on his or her behalf, and included in the employee's Form W-2. How do i file back taxes However, you must recover the income taxes before April 1 of the following year. How do i file back taxes Sick pay. How do i file back taxes   In general, sick pay is any amount you pay under a plan to an employee who is unable to work because of sickness or injury. How do i file back taxes These amounts are sometimes paid by a third party, such as an insurance company or an employees' trust. How do i file back taxes In either case, these payments are subject to social security, Medicare, and FUTA taxes. How do i file back taxes Sick pay becomes exempt from these taxes after the end of 6 calendar months after the calendar month the employee last worked for the employer. How do i file back taxes The payments are always subject to federal income tax. How do i file back taxes See Publication 15-A for more information. How do i file back taxes 6. How do i file back taxes Tips Tips your employee receives from customers are generally subject to withholding. How do i file back taxes Your employee must report cash tips to you by the 10th of the month after the month the tips are received. How do i file back taxes The report should include tips you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. How do i file back taxes Both directly and indirectly tipped employees must report tips to you. How do i file back taxes No report is required for months when tips are less than $20. How do i file back taxes Your employee reports the tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. How do i file back taxes The statement must be signed by the employee and must include: The employee's name, address, and SSN, Your name and address, The month or period the report covers, and The total of tips received during the month or period. How do i file back taxes Both Forms 4070 and 4070-A, Employee's Daily Record of Tips, are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer. How do i file back taxes You are permitted to establish a system for electronic tip reporting by employees. How do i file back taxes See Regulations section 31. How do i file back taxes 6053-1(d). How do i file back taxes Collecting taxes on tips. How do i file back taxes   You must collect income tax, employee social security tax, and employee Medicare tax on the employee's tips. How do i file back taxes The withholding rules for withholding an employee's share of Medicare tax on tips also apply to withholding the Additional Medicare Tax once wages and tips exceed $200,000 in the calendar year. How do i file back taxes If an employee reports to you in writing $20 or more of tips in a month, the tips are also subject to FUTA tax. How do i file back taxes   You can collect these taxes from the employee's wages or from other funds he or she makes available. How do i file back taxes See Tips treated as supplemental wages in section 7 for more information. How do i file back taxes Stop collecting the employee social security tax when his or her wages and tips for tax year 2014 reach $117,000; collect the income and employee Medicare taxes for the whole year on all wages and tips. How do i file back taxes You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the limit. How do i file back taxes You are responsible for the employer Medicare tax for the whole year on all wages and tips. How do i file back taxes File Form 941 or Form 944 to report withholding and employment taxes on tips. How do i file back taxes Ordering rule. How do i file back taxes   If, by the 10th of the month after the month for which you received an employee's report on tips, you do not have enough employee funds available to deduct the employee tax, you no longer have to collect it. How do i file back taxes If there are not enough funds available, withhold taxes in the following order. How do i file back taxes Withhold on regular wages and other compensation. How do i file back taxes Withhold social security and Medicare taxes on tips. How do i file back taxes Withhold income tax on tips. How do i file back taxes Reporting tips. How do i file back taxes   Report tips and any collected and uncollected social security and Medicare taxes on Form W-2 and on Form 941, lines 5b, 5c, and 5d (Form 944, lines 4b, 4c, and 4d). How do i file back taxes Report an adjustment on Form 941, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. How do i file back taxes Enter the amount of uncollected social security tax and Medicare tax on Form W-2, box 12, with codes “A” and “B. How do i file back taxes ” Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. How do i file back taxes See section 13 and the General Instructions for Forms W-2 and W-3. How do i file back taxes   Revenue Ruling 2012-18 provides guidance for employers regarding social security and Medicare taxes imposed on tips, including information on the reporting of the employer share of social security and Medicare taxes under section 3121(q), the difference between tips and service charges, and the section 45B credit. How do i file back taxes See Revenue Ruling 2012-18, 2012-26 I. How do i file back taxes R. How do i file back taxes B. How do i file back taxes 1032, available at www. How do i file back taxes irs. How do i file back taxes gov/irb/2012-26_IRB/ar07. How do i file back taxes html. How do i file back taxes Allocated tips. How do i file back taxes   If you operate a large food or beverage establishment, you must report allocated tips under certain circumstances. How do i file back taxes However, do not withhold income, social security, or Medicare taxes on allocated tips. How do i file back taxes   A large food or beverage establishment is one that provides food or beverages for consumption on the premises, where tipping is customary, and where there were normally more than 10 employees on a typical business day during the preceding year. How do i file back taxes   The tips may be allocated by one of three methods—hours worked, gross receipts, or good faith agreement. How do i file back taxes For information about these allocation methods, including the requirement to file Forms 8027 electronically if 250 or more forms are filed, see the Instructions for Form 8027. How do i file back taxes For information on filing Form 8027 electronically with the IRS, see Publication 1239. How do i file back taxes Tip Rate Determination and Education Program. How do i file back taxes   Employers may participate in the Tip Rate Determination and Education Program. How do i file back taxes The program primarily consists of two voluntary agreements developed to improve tip income reporting by helping taxpayers to understand and meet their tip reporting responsibilities. How do i file back taxes The two agreements are the Tip Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC). How do i file back taxes A tip agreement, the Gaming Industry Tip Compliance Agreement (GITCA), is available for the gaming (casino) industry. How do i file back taxes To get more information about TRDA and TRAC agreements, see Publication 3144, Tips on Tips. How do i file back taxes Additionally, visit IRS. How do i file back taxes gov and enter “MSU tips” in the search box to get more information about GITCA, TRDA, or TRAC agreements. How do i file back taxes 7. How do i file back taxes Supplemental Wages Supplemental wages are wage payments to an employee that are not regular wages. How do i file back taxes They include, but are not limited to, bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, retroactive pay increases, and payments for nondeductible moving expenses. How do i file back taxes Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. How do i file back taxes How you withhold on supplemental wages depends on whether the supplemental payment is identified as a separate payment from regular wages. How do i file back taxes See Regulations section 31. How do i file back taxes 3402(g)-1 for additional guidance for wages paid after January 1, 2007. How do i file back taxes Also see Revenue Ruling 2008-29, 2008-24 I. How do i file back taxes R. How do i file back taxes B. How do i file back taxes 1149, available at www. How do i file back taxes irs. How do i file back taxes gov/irb/2008-24_IRB/ar08. How do i file back taxes html. How do i file back taxes Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages from you during the calendar year. How do i file back taxes   Special rules apply to the extent supplemental wages paid to any one employee during the calendar year exceed $1 million. How do i file back taxes If a supplemental wage payment, together with other supplemental wage payments made to the employee during the calendar year, exceeds $1 million, the excess is subject to withholding at 39. How do i file back taxes 6% (or the highest rate of income tax for the year). How do i file back taxes Withhold using the 39. How do i file back taxes 6% rate without regard to the employee's Form W-4. How do i file back taxes In determining supplemental wages paid to the employee during the year, include payments from all businesses under common control. How do i file back taxes For more information, see Treasury Decision 9276, 2006-37 I. How do i file back taxes R. How do i file back taxes B. How do i file back taxes 423, available at www. How do i file back taxes irs. How do i file back taxes gov/irb/2006-37_IRB/ar09. How do i file back taxes html. How do i file back taxes Withholding on supplemental wage payments to an employee who does not receive $1 million of supplemental wages during the calendar year. How do i file back taxes   If the supplemental wages paid to the employee during the calendar year are less than or equal to $1 million, the following rules apply in determining the amount of income tax to be withheld. How do i file back taxes Supplemental wages combined with regular wages. How do i file back taxes   If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total were a single payment for a regular payroll period. How do i file back taxes Supplemental wages identified separately from regular wages. How do i file back taxes   If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the federal income tax withholding method depends partly on whether you withhold income tax from your employee's regular wages. How do i file back taxes If you withheld income tax from an employee's regular wages in the current or immediately preceding calendar year, you can use one of the following methods for the supplemental wages. How do i file back taxes Withhold a flat 25% (no other percentage allowed). How do i file back taxes If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. How do i file back taxes If there are no concurrently paid regular wages, add the supplemental wages to alternatively, either the regular wages paid or to be paid for the current payroll period or the regular wages paid for the preceding payroll period. How do i file back taxes Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. How do i file back taxes Subtract the tax withheld from the regular wages. How do i file back taxes Withhold the remaining tax from the supplemental wages. How do i file back taxes If there were other payments of supplemental wages paid during the payroll period made before the current payment of supplemental wages, aggregate all the payments of supplemental wages paid during the payroll period with the regular wages paid during the payroll period, calculate the tax on the total, subtract the tax already withheld from the regular wages and the previous supplemental wage payments, and withhold the remaining tax. How do i file back taxes If you did not withhold income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b. How do i file back taxes This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. How do i file back taxes Regardless of the method you use to withhold income tax on supplemental wages, they are subject to social security, Medicare, and FUTA taxes. How do i file back taxes Example 1. How do i file back taxes You pay John Peters a base salary on the 1st of each month. How do i file back taxes He is single and claims one withholding allowance. How do i file back taxes In January he is paid $1,000. How do i file back taxes Using the wage bracket tables, you withhold $50 from this amount. How do i file back taxes In February, he receives salary of $1,000 plus a commission of $2,000, which you combine with regular wages and do not separately identify. How do i file back taxes You figure the withholding based on the total of $3,000. How do i file back taxes The correct withholding from the tables is $338. How do i file back taxes Example 2. How do i file back taxes You pay Sharon Warren a base salary on the 1st of each month. How do i file back taxes She is single and claims one allowance. How do i file back taxes Her May 1 pay is $2,000. How do i file back taxes Using the wage bracket tables, you withhold $188. How do i file back taxes On May 14 she receives a bonus of $1,000. How do i file back taxes Electing to use supplemental wage withholding method 1-b, you: Add the bonus amount to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 = $3,000). How do i file back taxes Determine the amount of withholding on the combined $3,000 amount to be $338 using the wage bracket tables. How do i file back taxes Subtract the amount withheld from wages on the most recent base salary pay date (May 1) from the combined withholding amount ($338 – $188 = $150). How do i file back taxes Withhold $150 from the bonus payment. How do i file back taxes Example 3. How do i file back taxes The facts are the same as in Example 2, except you elect to use the flat rate method of withholding on the bonus. How do i file back taxes You withhold 25% of $1,000, or $250, from Sharon's bonus payment. How do i file back taxes Example 4. How do i file back taxes The facts are the same as in Example 2, except you elect to pay Sharon a second bonus of $2,000 on May 28. How do i file back taxes Using supplemental wage withholding method 1-b, you: Add the first and second bonus amounts to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 + $2,000 = $5,000). How do i file back taxes Determine the amount of withholding on the combined $5,000 amount to be $781 using the wage bracket tables. How do i file back taxes Subtract the amounts withheld from wages on the most recent base salary pay date (May 1) and the amounts withheld from the first bonus payment from the combined withholding amount ($781 – $188 – $150 = $443). How do i file back taxes Withhold $443 from the second bonus payment. How do i file back taxes Tips treated as supplemental wages. How do i file back taxes   Withhold income tax on tips from wages earned by the employee or from other funds the employee makes available. How do i file back taxes If an employee receives regular wages and reports tips, figure income tax withholding as if the tips were supplemental wages. How do i file back taxes If you have not withheld income tax from the regular wages, add the tips to the regular wages. How do i file back taxes Then withhold income tax on the total. How do i file back taxes If you withheld income tax from the regular wages, you can withhold on the tips by method 1-a or 1-b discussed earlier in this section under Supplemental wages identified separately from regular wages. How do i file back taxes Vacation pay. How do i file back taxes   Vacation pay is subject to withholding as if it were a regular wage payment. How do i file back taxes When vacation pay is in addition to regular wages for the vacation period, treat it as a supplemental wage payment. How do i file back taxes If the vacation pay is for a time longer than your usual payroll period, spread it over the pay periods for which you pay it. How do i file back taxes 8. How do i file back taxes Payroll Period Your payroll period is a period of service for which you usually pay wages. How do i file back taxes When you have a regular payroll period, withhold income tax for that time period even if your employee does not work the full period. How do i file back taxes No regular payroll period. How do i file back taxes   When you do not have a regular payroll period, withhold the tax as if you paid wages for a daily or miscellaneous payroll period. How do i file back taxes Figure the number of days (including Sundays and holidays) in the period covered by the wage payment. How do i file back taxes If the wages are unrelated to a specific length of time (for example, commissions paid on completion of a sale), count back the number of days from the payment period to the latest of: The last wage payment made during the same calendar year, The date employment began, if during the same calendar year, or January 1 of the same year. How do i file back taxes Employee paid for period less than 1 week. How do i file back taxes   When you pay an employee for a period of less than one week, and the employee signs a statement under penalties of perjury indicating he or she is not working for any other employer during the same week for wages subject to withholding, figure withholding based on a weekly payroll period. How do i file back taxes If the employee later begins to work for another employer for wages subject to withholding, the employee must notify you within 10 days. How do i file back taxes You then figure withholding based on the daily or miscellaneous period. How do i file back taxes 9. How do i file back taxes Withholding From Employees' Wages Income Tax Withholding Using Form W-4 to figure withholding. How do i file back taxes   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. How do i file back taxes Encourage your employees to file an updated Form W-4 for 2014, especially if they owed taxes or received a large refund when filing their 2013 tax return. How do i file back taxes Advise your employees to use the IRS Withholding Calculator on the IRS website at www. How do i file back taxes irs. How do i file back taxes gov/individuals for help in determining how many withholding allowances to claim on their Forms W-4. How do i file back taxes   Ask all new employees to give you a signed Form W-4 when they start work. How do i file back taxes Make the form effective with the first wage payment. How do i file back taxes If a new employee does not give you a completed Form W-4, withhold income tax as if he or she is single, with no withholding allowances. How do i file back taxes Form in Spanish. How do i file back taxes   You can provide Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, in place of Form W-4, to your Spanish-speaking employees. How do i file back taxes For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). How do i file back taxes The rules discussed in this section that apply to Form W-4 also apply to Formulario W-4(SP). How do i file back taxes Electronic system to receive Form W-4. How do i file back taxes   You may establish a system to electronically receive Forms W-4 from your employees. How do i file back taxes See Regulations section 31. How do i file back taxes 3402(f)(5)-1(c) for more information. How do i file back taxes Effective date of Form W-4. How do i file back taxes   A Form W-4 remains in effect until the employee gives you a new one. How do i file back taxes When you receive a new Form W-4 from an employee, do not adjust withholding for pay periods before the effective date of the new form. How do i file back taxes If an employee gives you a Form W-4 that replaces an existing Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W-4. How do i file back taxes For exceptions, see Exemption from federal income tax withholding , IRS review of requested Forms W-4 , and Invalid Forms W-4 , later in this section. How do i file back taxes A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. How do i file back taxes Successor employer. How do i file back taxes   If you are a successor employer (see Successor employer , later in this section), secure new Forms W-4 from the transferred employees unless the “Alternative Procedure” in section 5 of Revenue Procedure 2004-53 applies. How do i file back taxes See Revenue Procedure 2004-53, 2004-34 I. How do i file back taxes R. How do i file back taxes B. How do i file back taxes 320, available at www. How do i file back taxes irs. How do i file back taxes gov/irb/2004-34_IRB/ar13. How do i file back taxes html. How do i file back taxes Completing Form W-4. How do i file back taxes   The amount of any federal income tax withholding must be based on marital status and withholding allowances. How do i file back taxes Your employees may not base their withholding amounts on a fixed dollar amount or percentage. How do i file back taxes However, an employee may specify a dollar amount to be withheld in addition to the amount of withholding based on filing status and withholding allowances claimed on Form W-4. How do i file back taxes Employees may claim fewer withholding allowances than they are entitled to claim. How do i file back taxes They may wish to claim fewer allowances to ensure they have enough withholding or to offset the tax on other sources of taxable income not subject to withholding. How do i file back taxes See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. How do i file back taxes Along with Form W-4, you may wish to order Publication 505 for use by your employees. How do i file back taxes Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. How do i file back taxes If they require additional withholding, they should submit a new Form W-4 and, if necessary, pay estimated tax by filing Form 1040-ES, Estimated Tax for Individuals, or by using the Electronic Federal Tax Payment System (EFTPS) to make estimated tax payments. How do i file back taxes Exemption from federal income tax withholding. How do i file back taxes   Generally, an employee may claim exemption from federal income tax withholding because he or she had no income tax liability last year and expects none this year. How do i file back taxes See the Form W-4 instructions for more information. How do i file back taxes However, the wages are still subject to social security and Medicare taxes. How do i file back taxes See also Invalid Forms W-4 , later in this section. How do i file back taxes   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. How do i file back taxes To continue to be exempt from withholding in the next calendar year, an employee must give you a new Form W-4 by February 15. How do i file back taxes If the employee does not give you a new Form W-4 by February 15, begin withholding based on the last Form W-4 for the employee that did not claim an exemption from withholding or, if one was not filed, then withhold tax as if he or she is single with zero withholding allowances. How do i file back taxes If the employee provides a new Form W-4 claiming exemption from withholding on February 16 or later, you may apply it to future wages but do not refund any taxes already withheld. How do i file back taxes Withholding income taxes on the wages of nonresident alien employees. How do i file back taxes   In general, you must withhold federal income taxes on the wages of nonresident alien employees. How do i file back taxes However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. How do i file back taxes Also see section 3 of Publication 51 (Circular A), Agricultural Employer's Tax Guide, for guidance on H-2A visa workers. How do i file back taxes Withholding adjustment for nonresident alien employees. How do i file back taxes   For 2014, apply the procedure discussed next to figure the amount of income tax to withhold from the wages of nonresident alien employees performing services within the United States. How do i file back taxes Nonresident alien students from India and business apprentices from India are not subject to this procedure. How do i file back taxes Instructions. How do i file back taxes   To figure how much income tax to withhold from the wages paid to a nonresident alien employee performing services in the United States, use the following steps. How do i file back taxes Step 1. How do i file back taxes   Add to the wages paid to the nonresident alien employee for the payroll period the amount shown in the chart below for the applicable payroll period. How do i file back taxes    Amount to Add to Nonresident Alien Employee's Wages for Calculating Income Tax Withholding Only   Payroll Period Add Additional     Weekly $ 43. How do i file back taxes 30     Biweekly 86. How do i file back taxes 50     Semimonthly 93. How do i file back taxes 80     Monthly 187. How do i file back taxes 50     Quarterly 562. How do i file back taxes 50     Semiannually 1,125. How do i file back taxes 00     Annually 2,250. How do i file back taxes 00     Daily or Miscellaneous (each day of the payroll period) 8. How do i file back taxes 70   Step 2. How do i file back taxes   Use the amount figured in Step 1 and the number of withholding allowances claimed (generally limited to one allowance) to figure income tax withholding. How do i file back taxes Determine the value of withholding allowances by multiplying the number of withholding allowances claimed by the appropriate amount from Table 5. How do i file back taxes Percentage Method—2014 Amount for One Withholding Allowance shown on page 41. How do i file back taxes If you are using the Percentage Method Tables for Income Tax Withholding, provided on pages 43–44, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure the income tax withholding. How do i file back taxes If you are using the Wage Bracket Method for Income Tax Withholding, provided on pages 45–64, use the amount figured in Step 1 and the number of withholding allowances to figure income tax withholding. How do i file back taxes The amounts from the chart above are added to wages solely for calculating income tax withholding on the wages of the nonresident alien employee. How do i file back taxes The amounts from the chart should not be included in any box on the employee's Form W-2 and do not increase the income tax liability of the employee. How do i file back taxes Also, the amounts from the chart do not increase the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. How do i file back taxes This procedure only applies to nonresident alien employees who have wages subject to income tax withholding. How do i file back taxes Example. How do i file back taxes An employer using the percentage method of withholding pays wages of $500 for a biweekly payroll period to a married nonresident alien employee. How do i file back taxes The nonresident alien has properly completed Form W-4, entering marital status as “single” with one withholding allowance and indicating status as a nonresident alien on Form W-4, line 6 (see Nonresident alien employee's Form W-4 , later in this section). How do i file back taxes The employer determines the wages to be used in the withholding tables by adding to the $500 amount of wages paid the amount of $86. How do i file back taxes 50 from the chart under Step 1 ($586. How do i file back taxes 50 total). How do i file back taxes The employer then applies the applicable tables to determine the income tax withholding for nonresident aliens (see Step 2 ). How do i file back taxes Reminder: If you use the Percentage Method Tables for Income Tax Withholding, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure income tax withholding. How do i file back taxes The $86. How do i file back taxes 50 added to wages for calculating income tax withholding is not reported on Form W-2, and does not increase the income tax liability of the employee. How do i file back taxes Also, the $86. How do i file back taxes 50 added to wages does not affect the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. How do i file back taxes Supplemental wage payment. How do i file back taxes   This procedure for determining the amount of income tax withholding does not apply to a supplemental wage payment (see section 7) if the 39. How do i file back taxes 6% mandatory flat rate withholding applies or if the 25% optional flat rate withholding is being used to calculate income tax withholding on the supplemental wage payment. How do i file back taxes Nonresident alien employee's Form W-4. How do i file back taxes   When completing Forms W-4, nonresident aliens are required to: Not claim exemption from income tax withholding, Request withholding as if they are single, regardless of their actual marital status, Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, or South Korea, or a student or business apprentice from India, he or she may claim more than one allowance), and Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4. How do i file back taxes   If you maintain an electronic Form W-4 system, you should provide a field for nonresident aliens to enter nonresident alien status in lieu of writing “Nonresident Alien” or “NRA” above the dotted line on line 6. How do i file back taxes A nonresident alien employee may request additional withholding at his or her option for other purposes, although such additions should not be necessary for withholding to cover federal income tax liability related to employment. How do i file back taxes Form 8233. How do i file back taxes   If a nonresident alien employee claims a tax treaty exemption from withholding, the employee must submit Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with respect to the income exempt under the treaty, instead of Form W-4. How do i file back taxes See Publication 515 for details. How do i file back taxes IRS review of requested Forms W-4. How do i file back taxes   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. How do i file back taxes You may also be directed to send certain Forms W-4 to the IRS. How do i file back taxes You may receive a notice from the IRS requiring you to submit a copy of Form W-4 for one or more of your named employees. How do i file back taxes Send the requested copy or copies of Form W-4 to the IRS at the address provided and in the manner directed by the notice. How do i file back taxes The IRS may also require you to submit copies of Form W-4 to the IRS as directed by Treasury Decision 9337, 2007-35 I. How do i file back taxes R. How do i file back taxes B. How do i file back taxes 455, which is available at www. How do i file back taxes irs. How do i file back taxes gov/irb/2007-35_IRB/ar10. How do i file back taxes html. How do i file back taxes When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. How do i file back taxes After submitting a copy of a requested Form W-4 to the IRS, continue to withhold federal income tax based on that Form W-4 if it is valid (see Invalid Forms W-4 , later in this section). How do i file back taxes However, if the IRS later notifies you in writing the employee is not entitled to claim exemption from withholding or a claimed number of withholding allowances, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the IRS notice (commonly referred to as a "lock-in letter
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The How Do I File Back Taxes

How do i file back taxes Publication 957 - Main Content Table of Contents 1. How do i file back taxes What is Back Pay?Reporting Back Pay Back Pay Under a Statute Nonstatutory Back Pay Format for Report to the SSA Questions 2. How do i file back taxes Special Wage PaymentsReporting Special Wage Payments Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments Nonqualified Deferred Compensation and Section 457 Plans Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) PlansSpecial rule for box 11 of Form W-2 (distributions and deferral in the same year). How do i file back taxes 1. How do i file back taxes What is Back Pay? Back pay is pay received in a tax year(s) for actual or deemed employment in an earlier tax year(s). How do i file back taxes For social security coverage and benefit purposes, all back pay, whether or not under a statute, is wages if it is payment for covered employment. How do i file back taxes Damages for personal injury, interest, penalties, and legal fees included with back pay awards are not wages. How do i file back taxes Report all back pay. How do i file back taxes However, the tax year(s) for which back pay is credited as wages for social security purposes is different if it is awarded under a statute. How do i file back taxes See Back Pay Under a Statute , later, for more information. How do i file back taxes Reporting Back Pay The Internal Revenue Service (IRS) and the SSA consider back pay awards to be wages. How do i file back taxes However, for income tax purposes, the IRS treats all back pay as wages in the year paid. How do i file back taxes Employers should use Form W-2, Wage and Tax Statement, or electronic wage reports to report back pay as wages in the year they actually pay the employee. How do i file back taxes The SSA no longer accepts reports on tapes, cartridges, and diskettes. How do i file back taxes Example. How do i file back taxes In 2012, Terry Morris earned wages of $50,000. How do i file back taxes In the same year, she received $100,000 in settlement of a back pay case against her employer that covered the periods January 2007 through December 2011. How do i file back taxes Her employer properly reflected social security wages of $110,100 and Medicare wages of $150,000 on her 2012 Form W-2. How do i file back taxes However, if an employer did not include back pay wages on a previously filed Form W-2, magnetic media, or electronically filed wage report, the employer should prepare a wage correction report, Form W-2c, Corrected Wage and Tax Statement, or electronically filed report, to add the back pay award to the wages previously reported. How do i file back taxes Example. How do i file back taxes If, in the above example, Terry Morris' employer had prepared her 2012 Form W-2 reporting social security and Medicare wages of only $50,000 each, the employer would have to correct that report. How do i file back taxes A Form W-2c correcting the 2012 Form W-2 would show previously reported social security and Medicare wages of $50,000 and the correct amount of $110,100 for social security wages and $150,000 for Medicare wages. How do i file back taxes SSA treatment of back pay under a statute. How do i file back taxes   Under the law, the SSA credits back pay awarded under a statute to an individual's earnings record in the period(s) the wages should have been paid. How do i file back taxes This is important because wages not credited to the proper year may result in lower social security benefits or failure to meet the requirements for benefits. How do i file back taxes   However, back pay under statute payments will remain posted to the employee's social security earnings record in the year reported on Form W-2 (or Form W-2c) unless the employer or employee notifies the SSA (in a separate, special report) of the back pay under a statute payment. How do i file back taxes Then, the SSA can allocate the statutory back pay to the appropriate periods. How do i file back taxes   If a back pay award is not made under a statute, the SSA credits back pay as wages in the year paid. How do i file back taxes    If employers do notify the SSA of this payment, they should prepare a special report (with the information noted below) and send it to: Social Security Administration Attn: CPS Back Pay Staff 7-B-15 SWT 1500 Woodlawn Drive Baltimore, MD 21241-0001 Be sure to send this special report to the above address because the SSA handles it separately from other reports. How do i file back taxes    If you paid the back pay award in the same tax year to which it applies, report the wages on that year's Form W-2. How do i file back taxes No further action is necessary. How do i file back taxes Example. How do i file back taxes In 2012, Judy Wilson received a salary of $30,000 and a back pay under statute award of $2,000 for the period January through June 2012. How do i file back taxes Her employer properly reported wages of $32,000 for social security and Medicare on her 2012 Form W-2. How do i file back taxes No further action is necessary. How do i file back taxes Information the SSA needs to properly credit back pay under a statute (special report). How do i file back taxes   After you complete the special report, you or the employee should send it to the SSA when or after you submit the Form W-2 (on paper or electronically) to the SSA for the year you pay the statutory back pay to the employee. How do i file back taxes There is no statute of limitations on the filing of the special report to enable the SSA to allocate the wages. How do i file back taxes The special report must include the following information. How do i file back taxes The employer's name, address, and employer identification number (EIN). How do i file back taxes A signed statement citing the federal or state statute under which the payment was made. How do i file back taxes If the statute is not identified, the SSA will assume the payment was not under a statute and will not allocate to earlier period(s). How do i file back taxes The name and telephone number of a person to contact. How do i file back taxes The SSA may have additional questions concerning the back pay case or the individual employee's information. How do i file back taxes A list of employees receiving the payment and the following information for each employee: The tax year you paid and reported the back pay. How do i file back taxes The employee's social security number (SSN). How do i file back taxes The employee's name (as shown on his or her social security card). How do i file back taxes The amount of the back pay award excluding any amounts specifically designated otherwise, for example, damages for personal injury, interest, penalties, and legal fees. How do i file back taxes The period(s) the back pay award covers (beginning and ending dates—month and year). How do i file back taxes The other wages paid subject to social security and/or Medicare taxes and reported in the same year as the back pay award (if none, show zero)*. How do i file back taxes Do not include the back pay award shown in that wage report. How do i file back taxes If you originally submitted the report under an establishment number, show that number and the amount of money that is to remain under that establishment number. How do i file back taxes The amount to allocate to each reporting period*. How do i file back taxes This includes any amount you want allocated (if applicable) to the tax year of the award payment. How do i file back taxes If you do not give the SSA specific amounts to allocate, the SSA does the allocation by dividing the back pay award by the number of months or years covered by the award. How do i file back taxes *Note. How do i file back taxes   For periods before January 1, 1978 (before January 1, 1981, for state and local government employers covered by a Section 218 agreement), show the wage amounts for each calendar quarter ending March 31, June 30, September 30, and December 31. How do i file back taxes For all tax years, show and identify the social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) separately. How do i file back taxes MQGE is applicable to federal employees beginning in 1983, and for certain state and local government employees beginning in 1986. How do i file back taxes For tax years 1991 and later, list the social security and Medicare wages separately. How do i file back taxes If you originally reported the individual's wages under an establishment or payroll record unit number, show the amount of wages to remain in the award year for that number and furnish that number to the SSA along with the EIN. How do i file back taxes Back Pay Under a Statute Back pay awarded under a statute is a payment by an employer following an award, determination, or agreement approved or sanctioned by a court or government agency responsible for enforcing a federal or state statute that protects an employee's right to employment or wages. How do i file back taxes Examples of pertinent statutes include: Age Discrimination in Employment Act, Americans with Disabilities Act, Equal Pay Act, Fair Labor Standards Act, National Labor Relations Act, State minimum wage laws, and State statutes that protect rights to employment and wages. How do i file back taxes Payments based on laws that have a similar effect to those listed above also may qualify as payments made under a statute. How do i file back taxes Back pay awards, under some of the statutes listed above, may be compensation for personal injury and not pay for employment. How do i file back taxes Such awards are not wages for social security coverage purposes. How do i file back taxes If a court-approved or sanctioned settlement agreement states that the agreement is not an admission of discrimination, liability, or act of wrongdoing, the statement does not change the nature of a back pay award. How do i file back taxes The payments made in such a settlement may still be back pay and wages under the rules discussed here. How do i file back taxes Nonstatutory Back Pay A payment for back wages negotiated between an employer and employee without an award, determination, or agreement approved or sanctioned by a court or government agency, the payment is not made under a statute. How do i file back taxes Delayed wage payments and retroactive pay increases resulting from union negotiation or payments under local ordinances or regulations are back pay and are wages. How do i file back taxes However, they are not payments made under a statute. How do i file back taxes If you are uncertain whether the back pay award was under a qualified statute, you may need to contact your personnel department or legal counsel or the attorney who filed the suit. How do i file back taxes Format for Report to the SSA Use the format shown in Table 1, later, to send the SSA the information needed to properly credit back pay under a statute. How do i file back taxes In a cover letter, include: Name and address of the employer, Statute under which you paid the back pay, Name and telephone number of the employer contact, and Signature of the reporting official. How do i file back taxes Under certain circumstances, back pay may be a special wage payment and excluded from wages counted under the social security earnings test. How do i file back taxes If you pay back pay to an employee age 61 or older, report it to the SSA in accordance with this section. How do i file back taxes Read Special Wage Payments, later, for additional reporting instructions. How do i file back taxes Questions If you have questions concerning back pay under a statute, call the SSA at 1-800-772-6270. How do i file back taxes Exception. How do i file back taxes   If you are a state or local government employer who was covered by an agreement under Section 218 of the Social Security Act before January 1, 1987, and you paid a back pay award before January 1, 1987, which you did not report to the SSA, contact your state Social Security Administrator's office. How do i file back taxes Table 1. How do i file back taxes Format for Report (Under Covering Letter) to Request SSA to Allocate Back Pay Under Statute Wages Employer's EIN: xx-xxxxxxx Tax Year in Which Award Payment Was Paid: 2012 (1) SSN and Employee Name (2)1 Award Amount and Period(s) (3)2,3 Other Soc. How do i file back taxes Sec. How do i file back taxes /Med. How do i file back taxes Wages Paid In Award Year (4)3 Allocation     Soc. How do i file back taxes Sec. How do i file back taxes Med. How do i file back taxes /MQGE Year Soc. How do i file back taxes Sec. How do i file back taxes Med. How do i file back taxes /MQGE xxx-xx-xxxx HELEN T. How do i file back taxes SMITH $100,000 1/2009 - 12/2012 $40,000 $40,000 2009 2010 2011 2012 $20,000 25,000 27,000 28,000 $20,000 25,000 27,000 28,000 xxx-xx-xxxx SAM W. How do i file back taxes EVANS 30,000 7/89-12/91 -0- -0- 1989 1990 1991   6,000 12,000 12,000 xxx-xx-xxxx ROLAND S. How do i file back taxes ADAMS 15,000 7/80-12/81 -0- -0- 9/80 12/80 1981 3,500 3,500 8,000   1Exclude amounts specifically designated as damages, penalties, etc. How do i file back taxes  2Exclude the amount of back pay, if any, included in that amount. How do i file back taxes  3For periods before January 1, 1978 (and for state and local government (Section 218) employers before January 1, 1981), show the wage amounts by calendar quarters. How do i file back taxes The social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) must be shown separately FOR ALL YEARS. How do i file back taxes (Wages subject ONLY to MQGE would be shown in the Medicare/MQGE column; no wages would be shown in the Soc. How do i file back taxes Sec. How do i file back taxes column. How do i file back taxes ) For tax years 1991 and later, the social security and Medicare wages must be listed separately. How do i file back taxes Explanation of examples. How do i file back taxes Helen T. How do i file back taxes Smith–The back pay award, excluding interest, was $100,000 for the periods 1/2009-12/2012. How do i file back taxes In 2012, this employee was also paid $40,000 in other wages. How do i file back taxes (Her Form W-2 for 2012 reported $110,100 for social security and $140,000 for Medicare. How do i file back taxes The SSA allocation will result in adjusted posted wages of $68,000 for social security and $68,000 for Medicare for 2012. How do i file back taxes ) Sam W. How do i file back taxes Evans–The back pay award was $30,000 for the periods 7/89-12/91. How do i file back taxes This employee was hired in 1989 and was subject to MQGE only. How do i file back taxes He was no longer employed by this governmental employer in 2012. How do i file back taxes (His Form W-2 for 2012 reported $30,000 for social security and $30,000 for Medicare. How do i file back taxes After the SSA allocation, he will not have any net posted wages for 2012. How do i file back taxes ) Roland S. How do i file back taxes Adams–The back pay award was $15,000 for the periods 7/80-12/81. How do i file back taxes He was no longer employed by this state and local government (Section 218) employer in 2012. How do i file back taxes (His Form W-2 for 2012 reported $15,000 for social security and $15,000 for Medicare; after the SSA allocation, he will not have any net posted wages for 2012. How do i file back taxes ) If the state Social Security Administrator's office needs more information, they can contact the SSA at the following address:   Social Security Administration Office of Income Security Programs Office of Earnings and Program Integrity Policy 6401 Security Boulevard 2506 OPS Baltimore, MD 21235 2. How do i file back taxes Special Wage Payments A special wage payment (SWP) is an amount paid by an employer to an employee (or former employee) for services performed in a prior year. How do i file back taxes Employers should report to the SSA special wage payments made to employees and former employees who are recipients of social security retirement benefits. How do i file back taxes Special wage payments made to a retired employee receiving social security or to an employee who continues to work while receiving social security benefits may reduce the benefits the individual receives if not reported to the SSA. How do i file back taxes Special wage payments may include (but are not limited to): Accumulated sick and vacation pay, Back pay, Bonuses, Deferred compensation, Payments because of retirement, Sales commissions, Severance pay, and Stock options. How do i file back taxes Note. How do i file back taxes Payments made after retirement that are part of the normal payroll cycle should not be routinely reported as special wage payments. How do i file back taxes Earnings Test. How do i file back taxes   Benefits paid to a social security beneficiary under full retirement age may be reduced if the beneficiary continues to work. How do i file back taxes The SSA uses the information in boxes 1, 3, and 5 of Form W-2 to determine the beneficiary's current year earnings. How do i file back taxes Special wage payments, which are for services performed in a prior year, will increase the current year earnings on Form W-2, which also may result in a reduction in the beneficiary's benefits. How do i file back taxes If a benefit is reduced because of a special wage payment, the beneficiary must get documentation from the employer before the SSA can restore the deducted portion. How do i file back taxes Therefore, employer reports of special wage payments help prevent incorrect benefit reductions. How do i file back taxes Reporting Special Wage Payments Employers must report special wage payments for income tax purposes and social security and Medicare taxes in the year received. How do i file back taxes Report income, social security, and/or Medicare taxes for special wage payments on Form W-2. How do i file back taxes See Nonqualified Deferred Compensation and Section 457 Plans, later, for reporting nonqualified deferred compensation plan deferrals and payments on Form W-2. How do i file back taxes In addition, report to the SSA special wage payments made during the reporting year to retired employees and employees who continue to work while receiving social security benefits. How do i file back taxes Submit reports after the close of the tax year. How do i file back taxes To avoid delays in processing, submit reports in time to reach the SSA by April 1. How do i file back taxes Use one of the following reporting methods. How do i file back taxes Electronic reporting. How do i file back taxes   Special wage payment files can be sent electronically by logging onto Business Services Online (BSO) via the socialsecurity. How do i file back taxes gov website. How do i file back taxes BSO enables organizations and authorized individuals to conduct business with and submit confidential information to the Social Security Administration. How do i file back taxes You must register to use this website. How do i file back taxes The web address is www. How do i file back taxes socialsecurity. How do i file back taxes gov/bso/bsowelcome. How do i file back taxes htm. How do i file back taxes   Use the specifications and record layout shown in  Table 2, later. How do i file back taxes Only one file at a time may be submitted. How do i file back taxes If your file is large (>10MB), or you have a slow internet connection, the transmission will be faster if the file is zipped. How do i file back taxes A zipped file contains a file that has been compressed to reduce its file size. How do i file back taxes WinZip and PKZIP are examples of acceptable compression packages. How do i file back taxes   Electronic submissions not meeting the specifications in Table 2 will be rejected. How do i file back taxes Paper listing. How do i file back taxes   A paper listing can be used to report special wage payments to several employees. How do i file back taxes Use the format shown in Table 3, later. How do i file back taxes Submit paper listings to the local SSA office nearest your place of business. How do i file back taxes Visit www. How do i file back taxes socialsecurity. How do i file back taxes gov/locator to find a Social Security office near you. How do i file back taxes Form SSA-131. How do i file back taxes   Use Form SSA-131 to report special wage payments made to an employee. How do i file back taxes Also use this form to report nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in box 11 of Form W-2. How do i file back taxes    This image is too large to be displayed in the current screen. How do i file back taxes Please click the link to view the image. How do i file back taxes Publication 957 Reporting Back Pay to the Social Security Administration Instructions for Form SSA–131   EMPLOYER INSTRUCTIONS FOR COMPLETING SPECIAL WAGE PAYMENT FORM 1. How do i file back taxes Provide the EIN that was used or will be used to report the employee's wages on the Form W-2. How do i file back taxes 2. How do i file back taxes Enter the date the employee retired. How do i file back taxes Enter “Not Retired” if the employee has not retired. How do i file back taxes 3. How do i file back taxes Enter the date that the employee last performed services; was not expected to return to work; and was not subject to recall to render additional services. How do i file back taxes This date should be the same as or earlier than the date in item “2”. How do i file back taxes Enter “Not Retired” if the employee has not retired. How do i file back taxes 4. How do i file back taxes Enter the wages that were paid to the employee in the tax year that were for services that were performed in years prior to the tax year or that were paid on account of retirement. How do i file back taxes  Examples (not all inclusive) of payments to be included: Payments in lieu of vacation that were earned in a year prior to the tax year. How do i file back taxes Accumulated sick payments which were paid in a lump sum based on “retirement” as the sole condition of payment. How do i file back taxes Accumulated sick payments paid at or after the date in item 3, which were earned in a year prior to the tax year. How do i file back taxes Payments “on account of retirement”–dismissal, severance or termination pay paid because of retirement. How do i file back taxes Bonuses which are paid pursuant to a prior contract, agreement or promise causing the employee to expect such payments regularly; or announced to induce the employee to work more steadily, rapidly or efficiently or to remain with the employer. How do i file back taxes Stock Options. How do i file back taxes   Do not include in item “4” payments: For annual, sick, holiday, or vacation pay if used (absence from work) prior to the date of retirement (earlier of items “2” or “3”). How do i file back taxes That were reported or will be reported under “Nonqualified Plans” on the Form W-2. How do i file back taxes That were deducted from the employee's wages and paid to a deferred compensation plan (e. How do i file back taxes g. How do i file back taxes , 401k). How do i file back taxes Employees health and dental plan benefits (non-covered/non-taxable for Social Security Wages). How do i file back taxes Bonuses earned and paid in the tax year. How do i file back taxes 5. How do i file back taxes Check whether payments listed in item 4 will be made for years after the tax year. How do i file back taxes If yes, please show the amounts and years in which these will be paid, if known. How do i file back taxes 6. How do i file back taxes Nonqualified deferred compensation and section 457 plans only. How do i file back taxes If you were unable to report nonqualified deferred compensation or section 457 plan payments and deferrals (contributions) on Form W-2 because both payments and deferrals occurred during the year, show the amount of wages earned by the employee during the tax year. How do i file back taxes Generally, the wages earned will be the compensation reported in block 1 of Form W-2 less payments from a nonqualified deferred compensation (or 457) plan, but including any amounts deferred under the plan during the tax year (See IRS Publication 957). How do i file back taxes Paperwork/Privacy Act Notice: This report is authorized by regulation 20 CFR 404. How do i file back taxes 702. How do i file back taxes The information that you provide will be used in making a determination regarding the amount of Social Security benefits payable to the above named individual. How do i file back taxes While your response is voluntary, if you do not respond we may not be able to make a correct determination regarding the amount of Social Security benefits payable to the above named individual for the year in question. How do i file back taxes We may also use the information you give us when we match records by computer. How do i file back taxes Matching programs compare our records with those of other Federal, State, or local government agencies. How do i file back taxes Many agencies may use matching programs to find or prove that a person qualifies for benefits paid by the Federal Government. How do i file back taxes The law allows us to do this even if you do not agree to it. How do i file back taxes Explanations about these and other reasons why information you provide us may be used or given out are available in Social Security Offices. How do i file back taxes If you want to learn more about this, contact any Social Security Office. How do i file back taxes The Paperwork Reduction Act: This information collection meets the clearance requirements of 44 U. How do i file back taxes S. How do i file back taxes C. How do i file back taxes §3507, as amended by Section 2 of the Paperwork Reduction Act of 1995. How do i file back taxes You are not required to answer these questions unless we display a valid Office of Management and Budget control number. How do i file back taxes We estimate that it will take you about 20 minutes to read the instructions, gather the necessary facts, and answer the questions. How do i file back taxes Form SSA-131 (8-2001) EF (06-2002)   Submit Form SSA-131 to the SSA office nearest your place of business. How do i file back taxes Or, the employee can submit it to the SSA office handling the claim. How do i file back taxes You or the employee must submit this form before the SSA can exclude the special wage payments for purposes of the earnings test. How do i file back taxes If reporting on more than one employee, complete a separate Form SSA-131 for each employee or use the paper listing format (except for reporting nonqualified and section 457 plan deferrals and payments) in Table 3. How do i file back taxes Do not report payments from nonqualified deferred compensation or section 457 plans that were reported in box 11 of Form W-2. How do i file back taxes Use Form SSA-131 if deferrals to and payments from nonqualified or section 457 plans occurred during the tax year. How do i file back taxes Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments A nonstatutory (nonqualified) option to purchase stock which is exercised in a year after the year in which the option was earned is a special wage payment. How do i file back taxes It should not count for the social security earnings test. How do i file back taxes Nonstatutory (nonqualified) options exercised as special wage payments by retired employees or employees who continue to work while receiving social security benefits should be reported by employers using the above reporting methods. How do i file back taxes Nonqualified Deferred Compensation and Section 457 Plans A nonqualified deferred compensation plan is a plan or arrangement established and maintained by an employer for one or more of its employees that provides for the deferral of compensation, but does not meet the requirements for a tax-qualified deferred compensation plan. How do i file back taxes For social security and Medicare purposes, deferred compensation plans for employees of state and local governments (section 457 plans) are treated the same as nonqualified plans. How do i file back taxes Nonqualified and section 457 plans are reported differently than other special wage payments. How do i file back taxes See Reporting Amounts Deferred to Nonqualified and Section 457 Plans below for specific instructions. How do i file back taxes Reporting Amounts Deferred to Nonqualified and Section 457 Plans Generally, when the related services are performed, nonqualified deferred compensation is subject to social security and Medicare tax when deferred. How do i file back taxes However, if nonqualified and section 457 plans contain provisions that delay the employee's right to receive payments from the plan, a period of substantial risk of forfeiture exists. How do i file back taxes The plans' deferrals, or contributions, are not subject to social security and Medicare taxes until the period of substantial risk of forfeiture ends. How do i file back taxes No risk of forfeiture. How do i file back taxes   If there is no risk of forfeiture, report wage amounts deferred to a nonqualified deferred compensation or section 457 plan in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. How do i file back taxes Example. How do i file back taxes Company X's nonqualified deferred compensation plan allows the deferral of up to $20,000 of employee salaries each year. How do i file back taxes The plan has no risk of forfeiture. How do i file back taxes In 2012, Employee A defers $20,000 to the plan from a total salary of $200,000. How do i file back taxes Form W-2 Completion Amount Box 1 $200,000 Box 3* 110,100 Box 5 200,000 *Wage base maximum for tax year 2012 Risk of forfeiture lapses before retirement. How do i file back taxes   If the substantial risk of forfeiture lapses before the employee retires, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. How do i file back taxes The accumulated deferrals are reported along with any other social security and Medicare wages earned during the year. How do i file back taxes   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. How do i file back taxes If the employee continues working, future deferrals are social security and Medicare wages when they are earned. How do i file back taxes    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. How do i file back taxes Risk of forfeiture lapses at retirement. How do i file back taxes   When an employee's right to a payment is contingent upon working until retirement, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, as social security and/or Medicare wages in the year of retirement. How do i file back taxes Add the amount to other wages paid in that year, and enter in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. How do i file back taxes   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. How do i file back taxes    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. How do i file back taxes Example—risk of forfeiture. How do i file back taxes At the end of the risk-of-forfeiture period for Company Y's nonqualified deferred compensation plan, Employee B's accumulated deferrals, plus interest earned by the plan, are $120,000, not including B's $20,000 deferral for this year. How do i file back taxes B's wages, including this year's deferred amount, are $80,000. How do i file back taxes Form W-2 Completion Amount Box 1 $60,000 Box 3* 110,100 Box 5 200,000 Box 11 120,000 *Wage base maximum for tax year 2012 Reporting Payments From Nonqualified and Nongovernmental Section 457 Plans When an employee or former employee retires and begins receiving payments (distributions) from a nonqualified or nongovernmental section 457 plan, report the payments in boxes 1 and 11 of Form W-2. How do i file back taxes Report payments (distributions) from a governmental section 457 plan on Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. How do i file back taxes Example. How do i file back taxes Employee D retired from the XYZ company and began receiving social security benefits. How do i file back taxes XYZ paid D a $12,000 bonus upon retirement for sales made in a prior year, and D received $25,000 in payments from XYZ's nonqualified deferred compensation plan. How do i file back taxes In addition, D agreed to continue performing services for XYZ, but on a part-time basis for wages of $15,000 per year. How do i file back taxes D made no deferrals to the nonqualified plan this year. How do i file back taxes Form W-2 Completion Amount Box 1 $52,000 Box 3 27,000 Box 5 27,000 Box 11 25,000 Report the $12,000 bonus to the SSA using electronic reporting, a paper listing, or Form SSA-131. How do i file back taxes For more information, see Reporting Special Wage Payments , earlier. How do i file back taxes Reporting Payments and Deferrals in the Same Year Do not complete box 11 when payments (distributions) are made from a nonqualified plan and deferrals are reported in boxes 3 and/or 5 of Form W-2 (including current year deferrals). How do i file back taxes Report to the SSA on Form SSA-131 the total amount the employee earned during the tax year. How do i file back taxes Normally, the amount earned is the amount reported in box 1 of Form W-2 less payments from a nonqualified or section 457 plan, but including any amounts deferred under the plan during the tax year. How do i file back taxes See Form SSA-131 and its instructions, earlier. How do i file back taxes Example. How do i file back taxes Employee K retired this year from Company XYZ and began receiving social security benefits. How do i file back taxes During the year he earned wages of $50,000 and deferred $35,000 of the wages into the company's nonqualified deferred compensation plan. How do i file back taxes K also received $75,000 in payments from the company's nonqualified plan. How do i file back taxes Form W-2 Completion Amount Special Wage Payment $75,000 Wages 50,000 Minus: deferral 35,000 Total reported in Box 1 $90,000     Wages including deferral reported in  Boxes 3 and 5 $50,000     Leave Box 11 blank. How do i file back taxes File Form SSA-131 -0-     Form SSA-131 Completion Amount from Box 1 of Form W-2 $90,000 Minus: payments from a nonqualified plan 75,000 Plus: amounts deferred into the plan during the year 35,000 Total wages earned for purposes of Form SSA-131 (item 6) $50,000 Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) Plans It is not necessary to show amounts deferred during the year under an NQDC plan subject to section 409A. How do i file back taxes If you report section 409A deferrals, show the amount in box 12 of Form W-2 using code Y. How do i file back taxes For more information, see Notice 2008-115, 2008-52 I. How do i file back taxes R. How do i file back taxes B. How do i file back taxes 1367, available at www. How do i file back taxes irs. How do i file back taxes gov/irb/2008-52_IRB/ar10. How do i file back taxes html. How do i file back taxes Special reporting rules apply when an NQDC plan is not compliant with section 409A (when there has been a “plan failure”). How do i file back taxes Income included under section 409A from an NQDC plan is reported in box 1 and box 12 of Form W-2 using code Z. How do i file back taxes See Notice 2008-115. How do i file back taxes The following examples use small dollar amounts for illustrative purposes. How do i file back taxes However, the amount reported in box 3 of Form W-2 is always limited by the social security earnings wage base (for example, $110,100 for 2012). How do i file back taxes The term “vested” in the following examples means that the amount deferred is not subject to a substantial risk of forfeiture. How do i file back taxes Conversely, the term “not vested” means that the amount deferred is subject to a substantial risk of forfeiture. How do i file back taxes The examples assume that the NQDC plan is in compliance with section 409A, and that amounts deferred under the plan are not includible in gross income as they are deferred. How do i file back taxes For purposes of the examples, it is assumed that the regular pay of the employee is remuneration for employment and wages for employment tax purposes except to the extent the deferral of a portion of the regular pay results in a reduction in wages. How do i file back taxes Example 1: Deferral that is immediately vested (no substantial risk of forfeiture) with no distributions and no vesting of prior-year deferrals. How do i file back taxes For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into her employer’s NQDC plan. How do i file back taxes The deferral of $20 was vested upon deferral and there was an employer match of $10 under the plan, which was also vested. How do i file back taxes Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10. How do i file back taxes Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 vested deferral) $180 Box 3 ($200 Regular pay plus $10 Employer match, vested) 210 Box 5 ($200 Regular pay plus $10 Employer match, vested) 210 Box 11 -0- Example 2: Deferral with delayed vesting (substantial risk of forfeiture) of employee and employer portions (no distributions and no vesting of prior-year deferrals). How do i file back taxes For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. How do i file back taxes The deferral of $20 was not vested upon deferral, and there was an employer match of $10 under the plan, which was also not vested. How do i file back taxes Regular pay = $200; Deferral, not vested = $20; Employer match, not vested = $10. How do i file back taxes Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, not vested) $180 Box 3 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 5 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 11 -0- Example 3: Deferral that is immediately vested with prior-year deferrals and investment earnings on the prior-year deferrals that are now vesting (no distributions). How do i file back taxes For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. How do i file back taxes The deferral of $20 was vested upon deferral. How do i file back taxes During the year, $100 of prior-year deferrals and $15 of investment earnings on the $100 of prior-year deferrals became vested. How do i file back taxes Regular pay = $200; Deferral, vested = $20; Vesting of prior-year deferrals = $100; Vesting of investment earnings on $100 of prior-year deferral = $15. How do i file back taxes Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, vested) $180 Box 3 ($200 Regular pay plus $100 vested prior-year deferral plus $15 earnings on deferral) 315 Box 5 ($200 Regular pay plus $100 vested prior-year deferral plus $15 vested investment earnings on prior year deferral) 315 Box 11 ($100 vested prior-year deferral plus $15 earnings) 115 Example 4: No deferrals but there are distributions (no vesting of prior-year deferrals). How do i file back taxes For the year, the employee’s regular pay was $100, and the employee deferred no pay into the employer’s NQDC plan. How do i file back taxes There was no vesting of prior-year deferrals under the plan. How do i file back taxes During the year, there were total distributions of $50 from the plan to the employee. How do i file back taxes Regular pay = $100; Distribution = $50. How do i file back taxes Form W-2 Completion Amount Box 1 ($100 Regular pay plus $50 Distribution) $150 Box 3 ($100 Regular pay ) 100 Box 5 ($100 Regular pay) 100 Box 11 ($50 Distribution) 50 Special rule for box 11 of Form W-2 (distributions and deferral in the same year). How do i file back taxes   If, in the same year, there are NQDC distributions and there are deferrals that are reportable in boxes 3 and/or 5 (current or prior-year deferrals) of Form W-2, do not complete box 11. How do i file back taxes Instead, report on Form SSA-131 the total amount the employee earned during the year. How do i file back taxes * Submit the SSA-131 to the nearest SSA office or give it to the employee. How do i file back taxes   *Generally, the amount earned by the employee during the tax year for purposes of item 6 of Form SSA-131 is the amount reported in box 1 of Form W-2 plus current-year deferrals that are vested (employee and employer portions) less distributions. How do i file back taxes Do not consider prior-year deferrals that are vesting in the current year. How do i file back taxes If there was a plan failure, the box 1 amount in this calculation should be as if there were no plan failure. How do i file back taxes Example 5: Deferral that is immediately vested and there are distributions (no vesting of prior-year deferrals). How do i file back taxes For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. How do i file back taxes There was also an employer match of $10. How do i file back taxes The deferral and employer match were vested upon deferral. How do i file back taxes There was no vesting of prior-year deferrals under the plan. How do i file back taxes During the year, there were total distributions of $50 from the plan to the employee. How do i file back taxes Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10; Distribution = $50. How do i file back taxes Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, vested) $230 Boxes 3 and 5 ($200 Regular pay plus $10 vested employer match) 210 Leave Box 11 blank. How do i file back taxes File Form SSA-131 -0-     Form SSA-131 Completion Item 6 - amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $30 vested current year employee deferral and employer match) $210 Example 6: Deferral with delayed vesting and there are distributions (no vesting of prior-year deferrals). How do i file back taxes For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. How do i file back taxes The deferral was not vested upon deferral. How do i file back taxes There was no vesting of prior-year deferrals under the plan. How do i file back taxes During the year, there were total distributions of $50 from the plan to the employee. How do i file back taxes Regular pay = $200; Deferral, not vested = $20; Distribution = $50. How do i file back taxes Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay minus $20 deferral that is not vested) 180 Box 11 ($50 Distribution). How do i file back taxes 50 Example 7: Deferral that is immediately vested and there are distributions (also vesting of prior-year deferrals and earnings on those prior-year deferrals). How do i file back taxes For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. How do i file back taxes The deferral was vested upon deferral. How do i file back taxes There was vesting of $100 of prior-year deferrals and $15 of earnings on the $100 prior-year deferral under the plan. How do i file back taxes During the year, there were total distributions of $50 from the plan to the employee. How do i file back taxes Regular pay = $200; Deferral, vested = $20; Distribution = $50; Vesting of prior-year deferrals ($100) and earnings on those prior-year deferrals ($15) = $115. How do i file back taxes Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 vested deferral $230 Boxes 3 and 5 ($200 Regular pay Plus $115 vested prior deferral (with vested earnings on the deferral)) 315 Leave Box 11 blank. How do i file back taxes File Form SSA-131 -0-     Form SSA-131 Completion Item 6, amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $20 vested current year deferral) $200 Example 8: Deferral with delayed vesting and there are distributions (vesting of prior-year deferrals, including employer matches, and earnings on those deferrals). How do i file back taxes For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. How do i file back taxes The deferral was not vested upon deferral. How do i file back taxes There was also vesting of prior-year deferrals and employer matches and earnings on these amounts under the plan ($115). How do i file back taxes During the year, there were total distributions of $50 from the plan to the employee. How do i file back taxes Regular pay = $200; Deferral, not vested = $20; Distribution = $50; Vesting of prior-year deferrals and employer match = $100 plus earnings on that $100 of $15. How do i file back taxes Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay plus $115 vested prior-year deferral and prior year employer match and earning on the prior year amounts minus $20 deferral that is not vested) 295 Leave Box 11 blank. How do i file back taxes File Form SSA-131 -0-     Form SSA-131 Completion Item 6 ($230 Amount from Box 1 of Form W-2 minus $50 Distribution) $180 Table 2. How do i file back taxes Specifications for Electronic Reporting of Special Wage Payments Record Position  Field Size   Description Start End 1 3 3 Record Type—must include only the capital letters “SWP” 4 12 9 SSN—must be numeric and may not be all zeros 13 27 15 Last Name—all capitals and no punctuation; may have blanks on right only 28 38 11 First Name—all capitals and no punctuation; may have blanks on right only 39 39 1 Middle Initial—must be either a capital letter or blank 40 48 9 EIN—must be numeric and may not be all zeros 49 59 11 Payment—must be numeric; may not be all zeros; last two digits on right are assumed to be cents; no period or dollar sign 60 63 4 Payment Year—must be only a four-digit year 64 66 3 SSA Office Code—must be numeric and may be all zeros 67 67 1 Payment Type Code—must be the capital letter “T” 68 117 50 Filler  The record format is a fixed length of 117. How do i file back taxes  The file format is ASCII. How do i file back taxes  Submit only one file at a time. How do i file back taxes   Table 3. How do i file back taxes Sample—Paper Listing for Reporting Special Wage Payments to Several Employees Report of Special Wage PaymentsTax Year: Page of A. How do i file back taxes Employer Name: EIN:   Address: Contact Name:     Phone: ( )   . How do i file back taxes 1) B. How do i file back taxes Employee Name: (Last) (First) (MI)   C. How do i file back taxes SSN: D. How do i file back taxes SWP:$ E. How do i file back taxes Type: Other: 2) B. How do i file back taxes Employee Name: (Last) (First) (MI)   C. How do i file back taxes SSN: D. How do i file back taxes SWP:$ E. How do i file back taxes Type: Other: 3) B. How do i file back taxes Employee Name: (Last) (First) (MI)   C. How do i file back taxes SSN: D. How do i file back taxes SWP:$ E. How do i file back taxes Type: Other: 4) B. How do i file back taxes Employee Name: (Last) (First) (MI)   C. How do i file back taxes SSN: D. How do i file back taxes SWP:$ E. How do i file back taxes Type: Other: 5) B. How do i file back taxes Employee Name: (Last) (First) (MI)   C. How do i file back taxes SSN: D. How do i file back taxes SWP:$ E. How do i file back taxes Type: Other:     INSTRUCTIONS:   Enter tax year and page number. How do i file back taxes   A. How do i file back taxes Employer name, employer identification number (EIN), address, the name of a contact person, and a phone number where the contact person can be reached during normal business hours. How do i file back taxes   B. How do i file back taxes Employee's name. How do i file back taxes   C. How do i file back taxes Employee's social security number (SSN). How do i file back taxes   D. How do i file back taxes Total amount of special wage payments made to the employee. How do i file back taxes   E. How do i file back taxes Type of special wage payment from the following list: (1) Vacation Pay, (2) Sick Pay, (3) Severance Pay,  (4) Bonus, (5) Deferred Compensation, (6) Stock Options, and (7) Other—Please explain. How do i file back taxes   Do not use a paper listing for nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in block 11 of Form W-2. How do i file back taxes (Get Form SSA-131. How do i file back taxes )                 Prev  Up  Next   Home   More Online Publications