Center for Human Resources
Payroll and Compensation

Tax and IRS Information

Form W-2 Frequently Asked Questions

Below are answers to frequently asked questions regarding Form W-2:

1. The Form W-2 reflects wages paid by warrants/direct deposit payments that were issued during the 2003 tax year, regardless of the pay period in which the wages were earned. The 2003 Form W-2 includes warrants/payments issue dated Jan. 1, 2003 through Dec. 31, 2003. The Form W-2 contains all wages and tax information for an employee regardless of the number of state agencies/campuses for which they worked during the tax year.
   
   
2. The year-to-date gross on the final earnings statement/direct deposit advice for 2003 may not agree with Box 1 (Wages, Tips, Other Compensation), due to the following:
   Accounts Receivable deductions
   Non-USPS Adjustments
   Deferred Compensation deductions
   Pre-Tax Benefit deductions (POP/TAPP)
   Pre-Tax Parking deduction
   Flex Benefit deductions
   Retirement/PST Contributions
   Labor Code 4800 payments
   Tax Sheltered Annuity deductions
   Consolidated Benefits
   
   
3. Non-Industrial Disability Leave, Temporary Disability and Industrial Disability Leave Supplementation payments are considered wages and are included in Box 1.
   
   
4. Industrial Disability Leave (IDL) payments are considered employee benefits rather than wages and are not included in Box 1. Additionally, IDL payments are not subject to Social Security/Medicare wages and will not be reflected in Box 3 (Social Security Wages) or Box 5 (Medicare Wages and Tips).
   
   
5. Box 4 (Social Security Tax Withheld) was computed based upon the 2003 rate of 6.20 percent of wages subject to Social Security. The 2003 maximum wages subject to Social Security was $87,000.
   
   
6. Box 6 (Medicare Tax Withheld) was computed based upon the 2003 rate of 1.45 percent of wages subject to Medicare. There is no maximum amount of wages subject to Medicare.
   
   
7. Box 13 (not titled, but used to identify if employee is in a pension plan) will have an “X” indicated for all employees who were members of either the Public Employees’, State Teachers’, Judges’ or Legislators’ Retirement System. Employees in the Part-time, Seasonal and Temporary retirement plan will not have an “X” indicated.
   
   
8. Box 1 and Box 3 or 5 may not agree due to the following items:
   Accounts Receivable deductions
   Reaching Social Security maximum wages
   Deferred Compensation deductions
   Retirement/PST Contributions
   Flex Benefit deductions
   Tax Sheltered Annuity deductions
   Pre-Tax Benefit deductions (POP/TAPP)
   Pre-Tax Parking deduction
   Consolidated Benefits
   
   
9. Dependent Care deduction amounts withheld in 2003 will be reported in Box 10 (Dependent Care Benefits). The 2003 Dependent Care maximum contribution was $5,000.
   
   
10. Fringe Benefits will be reported in Boxes 1 and 14 (Other). This amount will also be included in Boxes 3 and 5, applicable.
    
    
11. Employees who had Deferred Compensation or Tax Sheltered Annuity deductions withheld will have the deduction amounts indicated in Box 12 with codes “D” for 401(k), “G” for 457 and “E” for 403(b).
    
    
12. Employees who are Part time, Seasonal and Temporary and have contributed to the PST Retirement Plan or University of California Deferred Compensation Retirement Plan will have the deduction amount indicated in Box 12 with code “G”.
    
    
13. The non-taxable Standard Mileage Reimbursement amounts up to the State’s allowances will be indicated in Box 12 with code “L”. The non-taxable portion of Moving Expense Mileage Reimbursements will be indicated in Box 12 with code “P”.
    
    
14. The qualified (non-taxable) reimbursement amount of Moving Relocation Expenses will be indicated in Box 12 with code “P”
    
    
15. The imputed value of Group Term Life Insurance coverage in excess of $50,000 will be indicated in Box 12 with code “C”.
    
    
16. If an employee receives a Form W-2 with an incorrect social security number or two or more Forms W-2 with different social security numbers, the employee’s Employment History record must be corrected. Submit a PAR/PPT to correct the record. Payroll Operation’s W-2. Unit will then send a Form W-2c (Corrected Wage and Tax Statement) to the department/campus for the affected employee.
    
    
17. Duplicate Form W-2 may be requested by completing Form Std. 436 (see California State Controller). There is a $8.50 processing fee for each tax year a duplicate Form W-2 is requested. For those employees currently employed, payment for the duplicate Form W-2 must be made via payroll deduction and the appropriate option must be checked on the Std. 436. For those employees in positions which do not allow voluntary deductions (i.e., retired annuitant, student assistant, youth aide) or the employee has separated from their state employment, payment must be made via a money order or cashier’s check made payable to the State Controller’s Office. Personal checks will no longer be accepted.
    
    

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Last updated March 6, 2007
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