IRS updates substitute forms W-2/W-3 guidance

The IRS has released the general rules for filing and reproducing paper substitutes for Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, for wages paid during the 2018 calendar year. Form W-2 (Copy A) or any other copies of a substitute Form W-2 or a substitute Form W-3 must conform to the specifications in the newly released guidance to be acceptable to the IRS and the SSA. IRS offices are not authorized to allow deviations from the specification.

What’s New?

(1) New Box 12 Code GG. A new box 12 Code GG has been added for employers with employees who have qualified equity grants that must report the amount includible in gross income under section 83(i) for an event that occurs in the calendar year. See P.L. 115-97, section 13603, for more information.

(2) New Box 12 Code HH. A new box 12 Code HH has been added for employers that must report the aggregate amount of income that employees elect to defer under section 83(i) as of the close of the calendar year. See P.L. 115=97, section 13603, for more information.

(3) Editorial changes. The IRS made editorial changes. Redundancies were eliminated as much as possible. (Rev. Proc. 2018-37, IRB 2018-29, IRS Publication 1141, July 16, 2018.)

Visit our News Library to read more news stories.