CPP Year-End Reporting & W-2 Processing 2

Question 1

What form is used to correct errors on a previously issued W-2?

Accepted Answer

Form W-2c

Answer

Form W-2c (Corrected Wage and Tax Statements) is used to correct errors on previously issued W-2 forms and is accompanied by Form W-3c when filed with the SSA.

Question 2

What Box 12 code on Form W-2 reports the cost of employer-sponsored health coverage under the ACA?

Accepted Answer

Code DD

Answer

Code DD in Box 12 reports the aggregate cost of employer-sponsored health coverage as required for informational purposes under the Affordable Care Act.

Question 3

Starting with tax year 2023, at what threshold are employers required to file W-2 forms electronically with the SSA?

Accepted Answer

10 or more forms

Answer

The Taxpayer First Act lowered the mandatory e-file threshold to 10 or more aggregate information returns, effective for returns filed after December 31, 2023.

Question 4

How long must an employer retain an undeliverable W-2 form that is returned by the postal service?

Accepted Answer

4 years

Answer

If a W-2 is returned as undeliverable, the employer must retain it for 4 years as part of its payroll records.

Question 5

What Box 12 code reports designated Roth contributions to a 401(k) plan?

Accepted Answer

Code AA

Answer

Code AA in Box 12 reports designated Roth contributions made to a 401(k) plan, which are after-tax deferrals to a Roth account within the plan.

CPP - Certified Payroll Professional Practice Test

CPP - Certified Payroll Professional Practice Test

CPP Year-End Reporting & W-2 Processing 2