W2 Forms › Deciphering 2025 W-2 Boxes and Instructions
As an employer, it is mandatory to file Form W2 with the SSA and provide a copy to each employee by January 31st of each year. In addition, depending on your state's requirements, you may also need to file Form W-2 with the state. To ensure accurate completion of the W-2 for the 2023 tax year, familiarize yourself with the W2 instructions. In this guide, we'll explain the purpose of each box and how to complete them.
Form W-2 is a wage tax form that reports the gross wages paid to employees and the taxes (social security, income, and Medicare) withheld from these employees to the Social Security Administration (SSA).
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Accurately filling out your W-2 is crucial to avoid penalties resulting from incomplete or incorrect information. Therefore, we will guide you through each box of Form W2 and provide the necessary information to be entered.
Employer Information: Name, EIN, Employer Type, and Address
Input the employer's whole EIN. Do not truncate or mask or use the prior owner's EIN.
Example: 00-0000000
Input the employer's name and complete address, including the ZIP code.
The U.S. Postal Service recommends avoiding commas or periods in return addresses.
Optional. This may be used to identify particular forms.
Employee Information: Name, SSN, Address, and Contact Details
Input the employee's whole SSN. Do not truncate or mask.
Input the employee's full name: first, middle initial, and last name.
It is crucial to report the exact last name of the employee. Do not use titles such as "Dr.", "RN", or "Esq".
Input the employee's complete address, including the suite/apartment number and ZIP code.
The U.S. Postal Service recommends avoiding commas or periods in return addresses.
Federal Information: W-2 boxes
Input the total taxable wages, tips, and other compensation paid to your employee for the year. Do not include elective deferrals.
Elective deferrals include employee contributions to a section 401(k) or 403(b) plan.
Input the total federal income tax amount withheld from your employee's wages for the year. Include the 20% excise tax withheld on excess parachute payments.
Show the total wages paid (before payroll deductions) subject to employee social security tax but not including social security tips and allocated tips.
Show the total employee social security tax withheld, including social security tax on tips.
Note: for 2024, the amount should not exceed $9,932.40 ($160,200 × 6.2%)
Input the employee's wages and tips subject to Medicare tax. In addition, enter any tips that the employee reported, even if there were insufficient funds to collect Medicare Tax.
Input the total amount of Medicare tax withheld (including any Additional Medicare Tax) for 2024.
Note: The total of boxes 3 and 7 should not be more than $160,200 (the maximum social security wage base for 2024)
Input any tips the employee reported to the employer. In addition, enter any tips the employee reported, even if there were insufficient funds to collect Social Security Tax.
(not applicable to Forms W-2AS, W-2CM, W-2GU, or W-2VI)
Input any tips allocated to the employee. Do not include this amount in boxes 1, 3, 5, or 7.
Note: generally applicable to large food or beverage establishment.
(not applicable to Forms W-2AS, W-2CM, W-2GU, or W-2VI)
Input the total dependent care benefits provided under a dependent care assistance program. Include any amounts over $5,000 in W2 boxes 1, 3, and 5.
Input the amount of nonqualified plans distributed from the employer.
Input the appropriate codes and corresponding amounts in this box. The codes and their descriptions are provided below:
Code | Instructions | ||
---|---|---|---|
A |
Uncollected social security or RRTA tax on tips | M |
Uncollected social security or RRTA tax on taxable cost of group-term life insurance over $50,000 (for former employees only) |
B |
Uncollected Medicare tax on tips (but not Additional Medicare Tax) | N |
Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (but not Additional Medicare Tax)(for former employees only)s |
C |
Taxable cost of group-term life insurance over $50,000 | P |
Excludable moving expense reimbursements paid directly to members of the Armed Forces |
D |
Elective deferrals under a section 401(k) cash or deferred arrangement plan (including a SIMPLE 401(k) arrangement) | Q |
Non-taxable combat pay (only for military personnel) |
E |
Elective deferrals under a section 403(b) salary reduction agreement | R |
Employer contributions to an Archer MSAs |
F |
Elective deferrals under a section 408(k)(6) salary reduction SEP | S |
Employee salary reduction contributions under a section 408(p) SIMPLE plan |
G |
Elective deferrals and employer contributions (including nonelective deferrals) to a section 457(b) deferred compensation plan | T |
Adoption benefits |
H |
Elective deferrals to a section 501(c)(18)(D) tax-exempt organization plan | V |
Income from the exercise of non-statutory stock option(s) (included in boxes 1, 3, and 5) |
J |
Non-taxable sick pay | W |
Employer contributions (including employee contributions through a cafeteria plan) to an employee's health savings account (HSA) |
K |
20% excise tax on excess golden parachute payments | Y |
Deferrals under section 409A on a nonqualified deferred compensation plan |
L |
Substantiated employee business expense reimbursements | Z |
Income under a nonqualified deferred compensation plan that fails to satisfy section 409A |
*Important Note: Box 12 codes are capitalized on Form W-2.
Code | Instructions |
---|---|
AA |
Designated Roth contributions under a section 401(k) plan |
BB |
Designated Roth contributions under a section 403(b) plan |
DD |
Cost of employer-sponsored health coverage |
EE |
Designated Roth contributions under a governmental section 457(b) plan |
FF |
Permitted benefits under a qualified small employer health reimbursement arrangement |
GG |
Income from qualified equity grants under section 83(i) |
HH |
Aggregate deferrals under section 83(i) elections as of the close of the calendar year |
*Important Note: Box 12 codes are capitalized on Form W-2.
Reminder: More than one box may be selected if applicable.
Employers use Box 14 to report details such as but not limited to:
Note: use this box for any other information that you want to give to your employee
State & Local Information:
These boxes allow reporting of wages and taxes for two states or localities. They should be entered on separate lines.
Include the employer's state and state tax identification number.
Report State Wages and Tips (only complete if applicable).
Enter State income tax (only complete if applicable).
Enter Local Wages and Tips (only complete if applicable).
Enter local income tax (only complete if applicable).
Enter locality name (only complete if applicable).
You can import your data as Excel, XML, or use files from popular payroll providers like QuickBooks, UKG, ADP, and many more.
We walk you through the process with no complicated jargon. You can also live chat with a real person as you work on your filing for hands-on help.
Once your data is loaded, you can e-file and distribute employee copies in minutes.
There is no additional fee for filing prior-year W-2 tax forms with BoomTax; you can e-file at the same affordable rate as current-year forms.
BoomTax is an IRS-approved e-file provider that supports electronic filing for various business tax forms, including Forms W-2, 1099 Forms, ACA Forms, and more.
Form W-2 must be distributed by the employer to the recipient on or before January 31st
Form W-2 must be mailed or E-Filed to the SSA on or before January 31st
Note: The deadline is typically the next business day if the deadline falls on a weekend or federal holiday.
Note: SSA recommends that payers utilize the e-file option over paper filing for faster processing and immediate updates.
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BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.