Puerto Rico has released Publication 17-04, which contains the specifications for Form 499R-2/W-2PR reporting. There are a number of changes from last year’s release:
Modified Fields
- Exempt Salaries Code (Box 16), (RS State Record, positions 442-443).
- Blank field (RS State Record, positions 444-449), (can be filled with blanks or zeros).
Updated Reporting Requirements
- When reporting three exempt salaries codes in Box 16A, the following combinations are possible:
- AB, AG, or BG
- You can now report up to 4 exempt salaries codes
- Box 16 must only include one of these combination of two codes: EG or FG
- Box 16A must only include this combination of two codes: AB
Other Changes
- A new Exempt Salaries Code was added: G. Disaster Assistance Qualified Payment according to Administrative Determination No. 17-21.
- Exempt Salaries [(RS State Record, positions 431-441) and (RV State Total Record, positions 63-77)] paid for any of the following concepts indicated in Exempt Salaries Code (RS State Record, positions 442-443) must be informed with the applicable code(s):
- Public employees’ wages for overtime worked during emergency situations under Act 324-2004;
- Income from overtime worked by a Puerto Rico Police member under Section 1031.02(a)(34) of the Code;
- Stipends received by certain physicians during the internship period under Section 1031.02(a)(9) of the Code;
- Compensation paid to an eligible researcher or scientist for services rendered under Section 1031.02(a)(26) of the Code;
- Salary not over $40,000 per year under Section 1031.02(a)(36) of the Code (Employees between ages of 16 and 26);
- Vacation and sick leave liquidation payment to public employees under Act 211-2015; or
- Disaster Assistance Qualified Payment according to Administrative Determination No. 17-21.
- The Social Security Wage Base for Tax Year 2017 is $127,200.
- RW-Employee Wage Record Changes
- Social Security Tax Withheld field should not exceed $7,886.40 for TY2017
To view the new Publication, please click here.
