IRS Releases 2018 Instructions for Forms W-2 and W-3

The IRS has released the 2018 Instructions for Forms W-2 and W-3. Form W-2 is used by employers to report employee wage information to the IRS.

There are a number of changes from the previous revision:

  • Two new codes (Codes GG and HH)
    • Code GG- Income from qualified equity grants under section 83
    • Code HH- Aggregate deferrals under section 83elections as of the close of the calendar year
  • Leave-based donation programs to aid victims of Hurricanes and Tropical Storms Harvey, Irma, and Maria, and the 2017 California Wildfires
    • Employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2019, to qualified tax-exempt organizations providing relief for the victims of Hurricane Harvey and Tropical Storm Harvey, Hurricane Irma and Tropical Storm Irma, Hurricane Maria and Tropical Storm Maria, and the California Wildfires that began on October 8, 2017
  • Suspension of exclusion for qualified moving expense reimbursements
  • The Tax Cuts and Jobs Act also temporarily makes the Sinai Peninsula of Egypt a qualified hazardous duty area. Treat this hazardous duty area as a combat zone for the exclusion from income of certain combat pay under section 112 and exclusion from wages under section 3401(a)(1)
  • New qualified equity grants under section 83
  • New section for “Qualified small employer health reimbursement arrangement”
  • Penalties have increased due to inflation
  • FSA limit has increased

To view the Instructions for Forms W-2 and W-3, please click here.

Author

Sovos

Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern tax. As governments and businesses go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports 5,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.
Share This Post