W-2, 1099 & Year-End Reporting Flashcards

An employee receives both regular wages and a company car for personal use. How is the personal use value of the company car reported on the W-2?

Answer: It is included in Box 1 wages and also reported in Box 14

The fair market value of personal use of a company car is taxable compensation included in Box 1 wages, and employers typically also report it in Box 14 for employee information.

What is the deadline for furnishing W-2 forms to employees for the prior tax year?

Answer: January 31

Employers must furnish W-2 forms to employees by January 31 of the year following the tax year reported.

A 1099-NEC must be filed for payments to a non-employee totaling at least how much in a calendar year?

Answer: $600

Payers must issue a 1099-NEC to non-employees who received $600 or more in non-employee compensation during the calendar year.

Which W-2 box reports the total amount of Social Security wages subject to the Social Security tax?

Answer: Box 3

Box 3 reports Social Security wages, which may differ from Box 1 wages due to items like Section 125 cafeteria plan deductions.

An employer discovers a W-2 error after filing. Which form is used to correct the error?

Answer: W-2C

Form W-2C (Corrected Wage and Tax Statement) is used to correct errors on previously filed W-2 forms.

For 1099-MISC reporting, which box is used to report rent payments made to a landlord?

Answer: Box 1

Rent payments of $600 or more are reported in Box 1 of Form 1099-MISC.

What is the purpose of Form W-3 in year-end reporting?

Answer: To transmit Copy A of all W-2 forms to the Social Security Administration

Form W-3 is the transmittal form that summarizes all W-2s filed and accompanies Copy A submissions to the Social Security Administration.