W-2 Statement Explanation
The following is a brief description of the information printed in Boxes 1 - 20 on your Form W-2:
1. Wages, tips, other compensation - Your total gross wages including bonuses, cash awards and cash prizes less (a) insurances and pre-tax parking and (b) retirement and annuities.
2. Federal income tax withheld - Your total federal income tax withheld for the year.
3. Social Security wages - Your Social Security (OASDI) wages are your total gross wages less any insurances and pre-tax parking.
4. Social Security taxes withheld - For 2005 your social security taxes will be equal to 6.2% of your total social security wages up to a maximum wage base of $90,000.
5. Medicare wages and tips - The wages subject to Medicare (HI) tax are the same as the social security wages.
6. Medicare tax withheld. - Medicare taxes are 1.45% of the Medicare wages but with no maximum wage base.
7. Social security tips - NA
8. Allocated tips - NA
9. Advance EIC Payment - The total paid to the employee as advance earned income credit payments as the result of eligibility to file Form W-5.
10. Dependent Care Benefits - The total amount you contributed to a dependent care assistance program under the NC Flex program.
11. Nonqualified plans - NA
12. Codes:
- D. Contributions to a 401(k) plan.
- E. Contributions to a 403(b) plan.
- G. Contributions to a 457(b) plan.
- P. Excludable moving expense reimbursements paid directly to the Employee - (Deductible moving expenses.)
13. Checkboxes:
- Statutory employee - NA
- Retirement plan checkbox - Checked if employee was an active participant for any part of the year in a qualified pension or profit-sharing plan or a 403(b) annuity.
14. Other - NA
15. State / Employer's state ID number - The state to which the state taxes will be paid. This is usually the state where the employee is actually working. The state ID number is the number assigned to NC State by said state for reporting purposes.
16. State wages, tips, etc. - This will normally be the same amount as Box 1 for NC.
17. State income tax - The amount of tax withheld from State wages. Some states do not have a state withholding tax so this box would be blank or report zeros.
18. Local wages, tips, etc. - The amount of income earned while living or working in a state that requires local income tax withholding and reporting. Some examples of states that require this are Pennsylvania, Kentucky, Ohio and Maryland.
19. Local income tax - Local income taxes withheld from your pay.
20. Locality name - Locality where income taxes were reported and paid to and to whom you may have to file a tax return.
