How Do I Report Income from Employee Nonqualified Deferred Compensation on a W2?

Report any income from employee nonqualified deferred compensation in Box 11 “Nonqualified Plans” on a W2 form. You must report the income for an employee on Form W2 regardless of whether the individual is still an employee at your company. Unsure about how your business benefits from giving your employees a nonqualified plan? The plans […]

How Do I Report Income from Employee Meal or Lodging Benefits on a W-2 Form?

Report taxable income from employee meal or lodging benefits as wages on a W-2 form. Treat income from employee meal or lodging benefits each as per diem expenses. All employers must report to the Internal Revenue Service in their tax returns how much per diem the business paid to its employees. Keep in mind that […]

How Do I Report Income from Employee Cell Phone or Internet Usage on a W-2 Form?

Employers generally do not report income from employee cell phone or internet usage on a W-2 form. Independent contractors often claim more tax deductions than traditional W-2 workers. W-2 employees who work from home do not have tax-deductible internet bills. Your employees may ask under these circumstances about reimbursement opportunities, like a work-from-home stipend. Did […]

Can I File a W-2 Form for Payments Made to a Foreign Employee Working Remotely?

Yes, employers can file a W-2 form for payments that they make to a foreign employee working remotely for their business. You legally must withhold taxes and report it for all W-2 employees. Apply that requirement to remote workers and withhold taxes on an employee’s behalf based on the employee’s country of residence. Make sure […]

How Do I Report Income from Jury Duty on a W-2 Form?

Report your employee’s income from jury duty in Box 1 “Wages, Tips, and Other Compensation” on a W-2 form. Employers must report additional income that they pay to an employee and send a Form W-2 to the worker by Jan. 31 for the previous tax year. Complete your filing duties so that all of your […]

How Do I Report Income from Employee Union Dues on a W-2 Form?

Report income from your business’s employee union dues in Box 14 “Other” on a W-2 form. Box 14 has multiple purposes. Use the allotted space to report additional tax or income information if your business must file it or record it for informational purposes. Employers may use the box for what they deducted for State […]

How Do I Report Income from Employee Life Insurance Coverage on a W-2?

Employers must report the income from the employee life insurance coverage in a few boxes on a W-2 form. All employers must first determine whether or not their business provides more than $50,000 of group-term life insurance coverage. A business does not face tax consequences if a total policy amount does not surpass that threshold. […]

How Do I Report Income from Employee FSAs on a W2 Form?

Businesses may report income from employee flexible spending accounts (FSAs) in a few ways, or not at all, on a W2 form. The Internal Revenue Service does not require employers to report health flexible spending accounts on an employee’s W2 form. There is an exception to the rule. Report income from a health FSA if […]

Can I File a W2 Form for Payments Made to an Intern?

Yes, you can and you should file a W2 form for payments that you made to an intern. Submit a Form W2 copy to the Internal Revenue Service and any of your business’s paid interns. Make sure that you do not contract these interns to complete specific work. You must classify them as employees if […]

Can I File a W2 Form for Payments Made to a Nonresident Alien Employee?

The short answer is, sometimes. File a W2 form for payments that you made to a nonresident alien employee if there is no tax treaty that applies to the employee. Employers should use the Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, if a tax treaty is applicable. Complete and file both tax […]