CPP Year-End Reporting & W-2 Processing 1 — Questions and Answers
Question 1: What is the deadline for employers to furnish W-2 forms to employees?
- January 31 (Correct answer)
- February 28
- March 15
- December 31
Correct answer: January 31
The IRS requires employers to furnish W-2 forms to employees by January 31 of the year following the tax year.
Question 2: Which box on Form W-2 reports Social Security wages?
- Box 1
- Box 3 (Correct answer)
- Box 5
- Box 7
Correct answer: Box 3
Box 3 reports total wages subject to Social Security tax, which may differ from Box 1 wages due to pre-tax deductions.
Question 3: What is the penalty per form for W-2 forms filed more than 30 days late but before August 1?
- $60 per form
- $120 per form (Correct answer)
- $310 per form
- $570 per form
Correct answer: $120 per form
The IRS imposes a $120 penalty per W-2 form filed more than 30 days after the due date but before August 1 of the filing year.
Question 4: What Box 12 code is used on Form W-2 to report elective deferrals to a 401(k) plan?
- Code A
- Code D (Correct answer)
- Code E
- Code G
Correct answer: Code D
Code D in Box 12 reports elective deferrals under a Section 401(k) cash or deferred arrangement.
Question 5: Which form is filed with the Social Security Administration to transmit Copy A of W-2 forms?
- Form W-3 (Correct answer)
- Form 1096
- Form 945
- Form 944
Correct answer: Form W-3
Form W-3 (Transmittal of Wage and Tax Statements) is filed with the SSA to summarize and transmit all Copy A W-2 forms.
Question 6: What information is reported in Box 8 of Form W-2?
- Dependent care benefits
- Allocated tips (Correct answer)
- Nonqualified deferred compensation
- Employer HSA contributions
Correct answer: Allocated tips
Box 8 reports allocated tips, which employers assign to employees whose reported tips fall below the minimum required percentage of gross receipts.
Question 7: Form 944 may be used instead of Form 941 by employers who expect their annual employment tax liability to be no more than:
- $1,000 (Correct answer)
- $2,500
- $5,000
- $10,000
Correct answer: $1,000
The IRS allows eligible employers to file Form 944 annually instead of Form 941 quarterly when their expected annual employment tax liability is $1,000 or less.
CPP Year-End Reporting & W-2 Processing 1
What is the deadline for employers to furnish W-2 forms to employees?