404.5 Form W-2 Instructions
UPDATED 01/07/2015
If your parish is utilizing the ConnectNow Payroll module, you can print the form W-2’s on blank
perforated paper that can be purchased at most office supply stores or you can submit your W-2’s
electronically. For more information about submitting your W-2’s and W-3 electronically through
ConnectNow Accounting Payroll go to http://vimeo.com/33744510.
Print 6 copies of each employee’s W-2:
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Copy A is for the Social Security Administration along with the W-3
Copy 1 is for the State of Iowa Department of Treasury
Copies B & C go to the employee
Copy D is retained by the employer for their records
Box 1: Wages, Tips, other Compensation:
Box 1 reports the federally taxable income of the employee. Wages in this box include the following:
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Total wages paid to the employee during the year.
Bonuses (including Christmas bonuses), prizes and awards paid to the employee during the year.
Box 1 excludes the following:
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Employee contributions to a 403b retirement plan
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Employee paid portions of health, dental, or vision insurance premiums
Employee contributions to a flex plan
Employee dependent care deductions
NOTE: Employee 403b contributions, employee portions of insurance premiums, flex contributions, and
dependent care payments are not subject to federal and state income tax. 403b monies are subject to
income tax only when withdrawn.
Box 2: Federal Income Tax Withheld:
Box 2 reports all Federal income tax which was withheld from the employee during the year.
Box 3: Social Security Wages:
Box 3 represents the employee’s social security taxable income. This box includes the following:
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Total wages paid to the employee during the year.
Bonuses (including signing bonuses and Christmas bonuses), prizes and awards paid to the
employee during the year.
Employee 403b retirement plan contributions
Box 3 excludes the following:
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Employee paid portions of health, dental, or vision insurance premiums
Employee contributions to a flex plan
Employee payments for dependent care plan
NOTE: Priests and Deacons are not subject to Social Security tax. Leave boxes 3 – 6 blank for all Priest
and Deacon W-2s.
Box 4: Social Security Tax Withheld:
Box 4 represents the amount withheld from the employee for Social Security taxes. Do NOT include the
employer paid portion of Social Security taxes on any W-2.
Box 5: Medicare Wages and tips:
Box 5 represents the employee’s Medicare taxable income.
Most likely, this number will equal the amount recorded in Box 4. These two figures will differ if the
employee makes more than the Social Security wage base limit ($117,000 for 2014). Individuals do not
pay Social Security tax on income over the Social Security wage base limit. If the employee makes less
than Social Security wage base limit in a year, Box 5 will be the same as Box 3.
See “Box 3 Social Security Wages” above for what is to be included and not included in Medicare Wages
and tips.
Box 6: Medicare Tax Withheld:
Box 6 represents the amount withheld from the employee for Medicare taxes.
Box 7: Social Security Tips
Box 8: Allocated Tips
Box 9: Advance EIC payment
Leave boxes 7 – 9 blank unless needed.
Box 10: Dependent Care Benefits:
Box 10 represents the amount the employee has paid toward Dependent Care benefits during the year.
If the employee does not participate in the Dependent Care plan, leave this box blank.
Box 11: Nonqualified Plans:
Leave Box 11 blank.
Box 12a – 12d:
Record here the amount contributed by the employee for a retirement plan. Boxes 12a – 12d require a
code to be in the first part of the box followed by the amount. For 403b retirement contributions, show
code E in Box 12a, followed by the amount withheld from the employee for retirement during the year.
In these cases, leave boxes 12b – 12d blank. If the employee does not participate in a retirement plan
through payroll deduction, leave boxes 12a – 12d blank.
Box 13: Checkboxes
If the employee has had money withheld for a 403b retirement plan during the year, check “Retirement
plan” in Box 13. If the employee had nothing withheld for a 403b, do not mark anything in this box.
Box 14: Other:
Use Box 14 for optional additional employee information. Label each item. Examples include health
insurance premiums deducted, or educational assistance payments.
Box 15: State:
Record “IA” in Box 15, along with the Parish’s/School’s Iowa state tax ID number.
Box 16: State Wages, tips etc.:
In Box 16 record the same amount as in Box 1. State Taxable wages are the same as federal taxable
wages.
Box 17: State Income Tax:
Box 17 represents the amount withheld from the employee during the year for State Income tax.
Box 18 – 20 Local Tax:
Complete boxes 18-20, if your community is subject to any local income tax.
404.6 Form W-3 Instructions
Box A: Control Number:
Leave this box blank.
Box B: Kind of Payer:
Check 941 in this box and kind of employer is 501c Non-Govt.
Box C: Total number of Forms W-2:
Record the number of employees who are receiving a W-2.
Box D: Establishment Number:
Leave blank.
Box E: Employer Identification Number:
Record the Federal Tax ID (EIN) number here.
Box F – Employer’s Name:
Enter the same name here as submitted on the most recent Form 941
Box G: Employer’s Address and ZIP code:
Box H: Other EIN used this year:
Leave blank.
Boxes 1 – 8:
Enter the figures reported in boxes 1 – 8 on all W-2 Forms.
Box 9: Leave Blank
Box 10:
Enter the figures reported in box 10 on all W-2’s.
Box 11:
Leave blank.
Box 12a:
Enter the figures reported in box 12a from all W-2’s. You do not need to record the E code here.
Box 12b, Box 13 and Box 14:
Leave blank
Box 15: State/Employer’s State Tax ID Number:
Enter “IA” and the Iowa State Tax ID Number.
Boxes 16 – 19:
Enter the total of state/local wages and income tax shown in the corresponding boxes on the W-2s
included with the W-3.
Verify the amount reported in each box is an accurate total of the Forms W-2. It is very important to
reconcile the amounts show in boxes 2, 3, 5, 7, and 9 for Form W-3 with the corresponding 941’s for the
same year.