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How Is the 2010 W-2 Form Different from the 2009 W-2 Form? What's Changed?

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Question: How Is the 2010 W-2 Form Different from the 2009 W-2 Form? What's Changed?
The 2010 HIRE ACT allows employers to receive an exemption from paying the employer portion of Social Security taxes for qualified employees hired in 2010. If you hired an employee who was previous unemployed and was "qualified" under the provisions of the HIRE Act, your company is exempt from the employer portion of the Social Security tax in FICA taxes (6.2% of employee's Social Security wages for the year).
Answer:

What is Different about the 2010 W-2 Form?
The difference in the 2010 W-2 Form (no longer available on the IRS website) is the change in Box 12. Use one of the sections of Box 12 to report Hire Act wages for a qualified employee. Enter Code "CC" (for employers only). Then enter the amount of wages in that section of Box 12. The code and the wage total should be the amount for the portion of employee wages that are exempt from the employer portion of the Social Security tax. The exempt wages (not the tax) are entered in this box. A couple of reminders:

  • Include only wages subject to the time period - March 19-31,2010 and April 1 – December 31, 2010, when the HIRE Act was in effect. For example, if you hired an employee January 1, 2010, you cannot include wages paid between January 1 and March 18, 2010 in Box 12.
  • Include only wages below $106,800 (the Social Security maximum for 2010).

Change in W-3 for 2010
Form W-3 Transmittal form is also different for 2010. In Box 12B enter the total amount of wages for all employees who are qualified under the HIRE Act.

Correcting W-2 and W-3 Information for this Change
If you have already provided a W-2 to an employee or sent W-3 to the Social Security Administration, and you need to make changes for the information discussed in this article, you will need to provide a W-2C to the employee(s) and a W-3C to the Social Security Administration.

Read more from the IRS about qualified employeesunder the HIRE Act

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