TAX AND TOPI LETTER NO. 17 Issuing W-2 frms fr IMRF mmbrs IMRF is a Qualifi Plan unr sctin 401(a) f th Intrnal Rvnu (IR), an IMRF mmbr cntributins ar tax-frr unr IR 414(h)(2). Plas cnsir th infrmatin in this lttr whn issuing W-2s fr IMRF mmbrs. This lttr supplmnts infrmatin fun in IRS publicatins (s pag 3.) Bx 1 an Bx 16 -Taxabl Wags Subtract rquir IMRF cntributins Mmbr IMRF cntributins ar tax-frr. Ths cntributins ar n f th amunts yu shul subtract frm a mmbr s grss wags whn calculating th taxabl wag amunt. (Yu shul als subtract any thr frr cmpnsatin, taxabl fring bnfits, an tax-frr cntributins t thr qualifi pnsin plans an caftria plans.) D nt subtract IMRF Vluntary Aitinal ntributins Vluntary Aitinal ntributins (VA) ar nt tax-frr, thy ar aftr tax. If yu hav a mmbr making VA t IMRF, nt subtract ths cntributins whn calculating th taxabl wag amunt. Whn an mplyr pays fr mmbr csts If yur mplyr pays fr a mmbr s IMRF cntributins, past srvic cst, Scial Scurity, Micar r thr itms that ar nrmally uct frm th mmbr, yu shul rviw Tax Lttr 15, Whn an Emplyr Pays fr Mmbr Past Srvic r ERI sts. Paying ths itms is th quivalnt f giving a bnus an thrfr incrass th mmbr s taxabl wags. Bx 3 - Scial Scurity Wags D nt subtract IMRF cntributins frm Scial Scurity Wags D nt autmatically ntr th sam wag amunt in Bx 1 (Wags), Bx 3 (Scial Scurity Wags), Bx 5 (Micar Wags), an Bx 16 (Stat Wags). Yu shul nt subtract IMRF mmbr cntributins r thr frr cmpnsatin plan amunts frm Scial Scurity wags. Hwvr, yu shul subtract any cntributins t a qualifi 125 (caftria) plan frm th Scial Scurity wags. Almst all IMRF mmbrs shul hav an amunt rprt in Bx 3. (An xcptin xists fr a small numbr f public safty fficrs in crtain citis, twns, an villags.) Rv. 06/2016 www.imrf.rg 1-800-ASK-IMRF (275-4673) 1
Tax an Tpic lttr #17 Issuing W-2 frms fr IMRF mmbrs, cntinu Maximum Scial Scurity Wag Bas Th amunt rprt as Scial Scurity wags shul nt xc th annual maximum. (Th sum f th amunts in Bx 3 an Bx 7 ar cnsir Scial Scurity wags, s th ttal f Bx 3 an Bx 7 tgthr shul nt xc th maximum.) Rfr t Appnix A in th Authriz Agnt s manual fr a list f annual Scial Scurity wag bas maximum amunts. Bx 5 - Micar Wags Thr is n maximum wag fr Micar. Fr mmbrs cvr by Micar, all wags ar subjct t Micar tax an matching mplyr Micar cntributins. Th amunt rprt in this bx may b iffrnt frm th amunt rprt in Bx 3. Bx 12 - Dfrr mpnsatin/elctiv Dfrrals IMRF mmbr cntributins ar nt cnsir frr cmpnsatin fr th purps f Bx 12. Thy ar als nt an lctiv frral sinc IMRF is manatry fr mmbrs in a qualifying psitin. Th W-2 instructins spcify that rquir mply cntributins (such as IMRF) ar nt lctiv frrals an shul nt b rprt in Bx 12. If a mmbr als participats in a 401(k), 403(b), 408(k)(6), 457, r 501(c)(18)(D) plan, shw that amunt in Bx 12. (S IRS Publicatin 393; rfr t instructins fr Bx 12.) Bx 13 - Rtirmnt Plan hck Bx 13 fr any mply wh is participating in IMRF r ligibl t participat in IMRF. Eligibl t participat mans that mplyrs shul als chck this bx fr lct fficials an city hspital wrkrs wh ar ligibl, but lct nt t participat with IMRF. Th IRS cnsirs ths mplys as bing cvr by a pnsin plan sinc thy ha an ptin t participat. (Rfr t IRS Publicatin 590-A, Iniviual Rtirmnt Arrangmnts [IRAs]. ) Bx 14 - Othr An ntry in this bx is nt rquir. Hwvr, yu may wish t shw mmbr IMRF cntributins (an VA if applicabl) in this bx. Fr xampl: Bx 14 IMRF $XXX.XX VA $XXX.XX Rv. 06/2016 www.imrf.rg 1-800-ASK-IMRF (275-4673) 2
Tax an Tpic lttr #17 Issuing W-2 frms fr IMRF mmbrs, cntinu Fr mr infrmatin Tw IRS publicatins that cntain tail infrmatin abut th guilins in this lttr ar: 1. IRS Publicatin 393, Fral Emplymnt Tax Frms. This publicatin cntains instructins fr cmplting Frms W-2, W-3 an 941. 2. IRS Publicatin 15, ircular E, Emplyr s Tax Gui. This publicatin xplains th mplyr s rspnsibility fr withhling, psiting, rprting an paying taxs. Aitinal qustins If yu hav aitinal qustins, plas call an IMRF Mmbr Srvics Rprsntativ at 1-800-ASK-IMRF (1-800-275-4673). Yu may als cntact th IRS fr aitinal incm tax infrmatin at 1 800 829 1040, r visit thir wbsit at www.irs.gv. Attachmnts: Manual fr Authriz Agnts Appnix B-1: mplt W-2 Wag an Tax Statmnt (Emplyr HAS fil rslutin t inclu Sctin 125 (caftria) amunts in IMRF arnings) Manual fr Authriz Agnts Appnix B-2: mplt W-2 Wag an Tax Statmnt (Emplyr has NOT fil rslutin t inclu Sctin 125 (caftria) amunts in IMRF arnings) Rv. 06/2016 www.imrf.rg 1-800-ASK-IMRF (275-4673) 3
Tax an Tpic lttr #17 Issuing IRS W-2 frms t IMRF mmbrs, cntinu Appnix B-1 mplt W-2 Wag an Tax Statmnt Emplyr HAS fil rslutin t inclu Sctin 125 (caftria) amunts in IMRF arnings Vi a Emply s scial scurity numbr 22222 001-01-1111 b Emplyr intificatin numbr (EIN) 36-600xxxx c Emplyr s nam, arss, an ZIP c ITY OF ANYWHERE 123 MAIN STREET ntrl numbr Fr Official Us Only OMB N. 1545-0008 1 Wags, tips, thr cmpnsatin 8,977.25 866.58 2 Fral incm tax withhl 3 Scial scurity wags 4 Scial scurity tax withhl 612.81 5 Micar wags an tips 6 Micar tax withhl 143.32 7 Scial scurity tips 8 Allcat tips 9 Avanc EI paymnt 10 Dpnnt car bnfits Emply s first nam an initiallast Nam JOHN J. DOE IL 36-600xxxx 8,977.25 179.31 Suff. 11 Nnqualifi plans 12a S instructins fr bx 12 13 Statutry Rtirmnt Thir-party 12b mply plan sick pay 145 ELM STREET X 14 Othr 12c G 450.00 IMRF 456.75 12 f Emply s arss an ZIP c 15 Stat Emplyr s Stat ID numbr 16 Stat wags, tips, tc. 17 Stat incm tax 18 Lcal wags, tips, tc. 19 Lcal incm tax 20 Lcality nam Wag an Tax Dpartmnt f th Trasury Intrnal Rvnu Srvic Frm W2 Statmnt 2013 Fr Privacy Act an Paprwrk Ructin py A Fr Scial Scurity Aministratin Sn this ntir pag with Act Ntic, s back f py D. Frm W-3 t th Scial Scurity Aministratin; phtcpis ar nt Optinal at. N. 10134D accptabl. D Nt ut, Fl, r Stapl Frms n This Pag D Nt ut, Fl, r Stapl Frms n This Pag Sampl calculatin fr an mplyr that has fil a rslutin t inclu Sctin 125 (caftria) amunts in IMRF arnings W-2 IMRF alculatin alculatin Grss Salary $ 10,000.00 $10,000.00 Sctin 125 (caftria r salary ructin plan) -266.00 Prsnal us f aut +150.00 +150.00 Scial Scurity an Micar wags (Bx 3 & 5) 9,884.00 IMRF Earnings 10,150.00 IMRF cntributins (4.5%) - 456.75 Dfrr mpnsatin (Bx 12) -450.00 IMRF ntributins (Bx 14) - 456.75 Taxabl Wags (Bx 1 & 16) $ 8,977.25
Tax an Tpic lttr #17 Issuing IRS W-2 frms t IMRF mmbrs, cntinu Appnix B-2 mplt W-2 Wag an Tax Statmnt Emplyr Has NOT fil rslutin t inclu Sctin 125 (caftria) amunts in IMRF arnings a Emply s scial scurity numbr 22222 Vi 001-01-1111 b Emplyr intificatin numbr (EIN) 36-600xxxx c Emplyr s nam, arss, an ZIP c ITY OF ANYWHERE 123 MAIN STREET ntrl numbr Fr Official Us Only OMB N. 1545-0008 1 Wags, tips, thr cmpnsatin2 Fral incm tax withhl 8989.22 868.38 3 Scial scurity wags 4 Scial scurity tax withhl 612.81 5 Micar wags an tips 6 Micar tax withhl 143.32 7 Scial scurity tips 8 Allcat tips 9 Avanc EI paymnt 10 Dpnnt car bnfits Emply s first nam an initiallast Nam JOHN J. 145 ELM STREET f Emply s arss an ZIP c DOE IL 36-600xxxx 8989.22 179.67 Suff. 11 Nnqualifi plans 12a S instructins fr bx 12 13 Statutry Rtirmnt mply plan 14 Othr 15 Stat Emplyr s Stat ID numbr 16 Stat wags, tips, tc. 17 Stat incm tax 18 Lcal wags, tips, tc. 19 Lcal incm tax 20 Lcality nam X Thir-party sick pay IMRF 444.78 G 12b 12c 12 450.00 Wag an Tax Dpartmnt f th Trasury Intrnal Rvnu Srvic Frm W2 Statmnt 2013 Fr Privacy Act an Paprwrk Ructin py A Fr Scial Scurity Aministratin Sn this ntir pag with Act Ntic, s back f py D. Frm W-3 t th Scial Scurity Aministratin; phtcpis ar nt Optinal at. N. 10134D accptabl. D Nt ut, Fl, r Stapl Frms n This Pag D Nt ut, Fl, r Stapl Frms n This Pag Sampl calculatin fr an mplyr that has NOT fil a rslutin t inclu sctin 125 (caftria) amunts in IMRF arning W-2 IMRF alculatin alculatin Grss Salary $ 10,000.00 $ 10,000.00 Sctin 125 (caftria r salary ructin plan) -266.00-266.00 Prsnal us f aut +150.00 +150.00 Scial Scurity an Micar wags (Bx 3 & 5) 9,884.00 IMRF Earnings 9,884.00 IMRF cntributins (4.5%) - 444.78 Dfrr mpnsatin (Bx 12) -450.00 IMRF ntributins (Bx 14) -444.78 Taxabl Wags (Bx 1 & 16) $ 8,989.22