CPP Year-End Reporting & W-2 Processing

Question 1

What is the deadline for employers to furnish W-2 forms to employees?

Accepted Answer

January 31

Answer

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?

Accepted Answer

Box 3

Answer

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?

Accepted Answer

$120 per form

Answer

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?

Accepted Answer

Code D

Answer

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?

Accepted Answer

Form W-3

Answer

Form W-3 (Transmittal of Wage and Tax Statements) is filed with the SSA to summarize and transmit all Copy A W-2 forms.

CPP - Certified Payroll Professional Practice Test