Broker Question on W2 Compliance

By Ric Joyner, CEBS, GBA, CFCI

Hi Ric, thanks for the information.  You are such a value to us for doing this.  When the ACA first talked about requiring this information I read an opinion from an accounting firm when an employee leaves their employer – he is entitled to request his W-2 at that time.  Would you know if this is still the rule?  If it is, then this W-2 reporting has to be ready to go during this year (for anyone leaving).
Hi Ric,

The answers are:

(1)  Section 6051(a) of the internal revenue code requires an employer to provide a W-2 within 30 days after receipt of a written request from a terminated employee.
(2)  Notice 2011-28 provides that employers are not required to report the cost of health coverage on any W-2 forms required to be furnished to employees prior to January 2013. 
I have attached Section 6051(a) and a link to Notice 2011-28.
Let me now if you have questions or need anything else on this.
http://www.irs.gov/pub/irs-drop/n-11-28.pdf
26 U.S.C. § 6051 : US Code – Section 6051: Receipts for employees

(a) Requirement
Every person required to deduct and withhold from an employee a
tax under section 3101 or 3402, or who would have been required to
deduct and withhold a tax under section 3402 (determined without
regard to subsection (n)) if the employee had claimed no more than
one withholding exemption, or every employer engaged in a trade or
business who pays remuneration for services performed by an
employee, including the cash value of such remuneration paid in any
medium other than cash, shall furnish to each such employee in
respect of the remuneration paid by such person to such employee
during the calendar year, on or before January 31 of the succeeding
year, or, if his employment is terminated before the close of such
calendar year, within 30 days after the date of receipt of a
written request from the employee if such 30-day period ends before
January 31, a written statement showing the following:
(1) the name of such person,
(2) the name of the employee (and his social security account
number if wages as defined in section 3121(a) have been paid),
(3) the total amount of wages as defined in section 3401(a),
(4) the total amount deducted and withheld as tax under section
3402,
(5) the total amount of wages as defined in section 3121(a),
(6) the total amount deducted and withheld as tax under section
3101,
(7) the total amount paid to the employee under section 3507
(relating to advance payment of earned income credit),
(8) the total amount of elective deferrals (within the meaning
of section 402(g)(3)) and compensation deferred under section
457, including the amount of designated Roth contributions (as
defined in section 402A),
(9) the total amount incurred for dependent care assistance
with respect to such employee under a dependent care assistance
program described in section 129(d),
(10) in the case of an employee who is a member of the Armed
Forces of the United States, such employee’s earned income as
determined for purposes of section 32 (relating to earned income
credit),
(11) the amount contributed to any Archer MSA (as defined in
section 220(d)) of such employee or such employee’s spouse,
(12) the amount contributed to any health savings account (as
defined in section 223(d)) of such employee or such employee’s
spouse, and
(13) the total amount of deferrals for the year under a
nonqualified deferred compensation plan (within the meaning of
section 409A(d)).
In the case of compensation paid for service as a member of a
uniformed service, the statement shall show, in lieu of the amount
required to be shown by paragraph (5), the total amount of wages as
defined in section 3121(a), computed in accordance with such
section and section 3121(i)(2). In the case of compensation paid
for service as a volunteer or volunteer leader within the meaning
of the Peace Corps Act, the statement shall show, in lieu of the
amount required to be shown by paragraph (5), the total amount of
wages as defined in section 3121(a), computed in accordance with
such section and section 3121(i)(3). In the case of tips received
by an employee in the course of his employment, the amounts
required to be shown by paragraphs (3) and (5) shall include only
such tips as are included in statements furnished to the employer
pursuant to section 6053(a). The amounts required to be shown by
paragraph (5) shall not include wages which are exempted pursuant
to sections 3101(c) and 3111(c) from the taxes imposed by sections
3101 and 3111. In the case of the amounts required to be shown by
paragraph (13), the Secretary may (by regulation) establish a
minimum amount of deferrals below which paragraph (13) does not
apply.

Todd

Todd W. Martin
Reinhart Boerner Van Deuren s.c.
22 East Mifflin Street, Suite 600 | Madison, WI 53703
Office: 608-229-2244 | Cell: 608-219-7196 | Fax: 608-229-2100
tmartin@reinhartlaw.com  | bio | vCard | reinhartlaw.com

 

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