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Table 1
Most Employees

Table 2
2% Shareholders

 
Where to Reporting Reimbursement and Benefits
on Form W-2
 
Table 1-
Not applicable to greater-than-2-percent shareholders or highly compensated employees		  
   
Employee Fringe Benefits
Report on Form W-2 in Box
1 3 & 5  10 12 Code  13 14
  Accident and Health Benefits (See Footnote 3)             
    Accident and health benefits other than              
    long-term care premiums  no  no  no  no  –  no  no 
    Long-term care premiums paid through a              
    cafeteria or flex spending account  yes  yes  no  no  –  no  no 
    Long-term care premiums not paid through            
    a cafeteria or flex spending account  no  no  no  no  –  no  no 
 
Non-Cash Achievement Awards (See Footnote 2) 		        
    Up to $1,600 from a qualified plan or              
    $400 from a non-qualified plan  no  no  no  no  –  no  optional 
    The amount over $1,600 from a qualified              
    plan or $400 from a non-qualified plan  yes  yes  no  no  –  no  – 
 
Adoption Assistance (See Footnote 1) 		        
    Paid from an adoption
assistance program 		 no  yes  no  yes  T  no  – 
    Paid or reimbursed from a
 cafeteria plan 		 no  yes  no  yes  T  no  – 
    Forfeited from a cafeteria plan  no  no  no  no  –  no  – 
 
Dependent Care Assistance Programs (See Footnote 1) 		        
    Cash reimbursements up to limits of $5,000            
    MFJ or $2,250 MFS or Single  no  no  yes  no  –  no  no 
    FMV of on-site facilities less the amount paid            
    by employee up to limits of $5,000 MFJ or              
    $2,250 MFS or Single  no  no  yes  no  –  no  no 
    Amount reimbursed or value in excess of              
    above stated limits  yes  yes  yes  no  –  no  optional 
 
Educational Assistance (See Footnote 2) 		      
    Up to $5,250 paid from a qualified plan to maintain or improve job skills  no  no  no  no  –  no  no 
    Excess of $5,250 or paid from a non-qualifying plan but considered a working condition fringe benefit  no  no  no  no  –  no  no 
    Paid as a working condition fringe benefit  no  no  no  no  –  no  no 
    Excess of $5,250 or paid from a non-qualifying plan and not considered a working condition fringe benefit  yes  yes  no  no  –  no  no 
 
Employee Discounts (See Footnote 2) 		        
    Discounts not in excess of 20 percent of services  no  no  no  no  –  no  no 
    Discounts not in excess of the employer’s cost  no  no  no  no  –  no  no 
    Discounts in excess of above limits  yes  yes  no  no  –  no  no 
 
Group-Term Life Insurance Premiums (See Footnotes 5 & 6) 		      
    Paid to current and former employees for up to $50,000 of coverage  no  no  no  no  –  no  no 
    Paid to current employees in excess of $50,000 of coverage up to FICA wage limit  yes  yes  no  yes  C  no  no 
    Paid to former employees in excess of $50,000 of coverage  yes  yes  no  yes  M&N  no  no 
 
Health Savings Accounts (HSAs)
(See Footnote 2)
Moving Expense Reimbursements
(See Footnote 4)		 no  no  no  yes  W  no  no 
 
Moving Expense Reimbursements (See Footnote 4)		      
    Paid or reimbursed deductible moving expenses  no  no  no  yes  P  no  no 
    Paid or reimbursed non-deductible moving expenses  yes  yes  no  no  –  no  optional 
 
Qualified Transportation Benefits (See Footnote 4) 		      
    Paid or reimbursed up to the following monthly limits:
3 $115 per month for combined commuter highway vehicle transportation and transit passes
3 $220 per month for qualified parking		 no  no  no  no  –  no  no 
    Paid or reimbursed in excess of the above monthly limits  yes  yes  no  no  –  no  optional 
                   
Reimbursements For
 Employee Business Expenses 
Report on Form W-2 in Box
1 3 & 5  10 12 Code  13 14
    Per diem, less than government rate (substantiated)  no  no  no  no  –  no  no 
    Per diem, equal to government rate (not substantiated)  no  no  no  no  –  no  no 
    Per diem, up to government rate (substantiated)  no  no  no  yes  –  no  no 
    Per diem, in excess of government rate (substantiated)  yes  yes  no  no  –  no  no 
    Any amount, other than a per diem amount (substantiated)  no  no  no  no  –  no  no 
    Any amount, other than a per diem amount (not substantiated)  yes  yes  no  no  –  no  no 
                   
Footnotes               
(1) For this exclusion, a highly compensated employee for 2008 is an employee who meets either of the following tests:
  The employee was a 5-percent owner at any time during the year or the preceding year.  
  The employee received more than $100,000 in pay for the preceding year.       
(2) For this exclusion, any employee who received more than $100,000 in pay for 2007 is a highly compensated employee. 
(3) A highly compensated employee for this exception is any of the following individuals:    
  One of the five highest paid officers              
  An employee who owns (directly or indirectly) more than 10 percent in value of the employer’s stock. 
  An employee who is among the highest paid 25 percent of all employees (other than those who can be excluded from the plan). 
(4) The highly compensated employee rules do not apply due to the nature of the benefit.   
(5) For this exclusion, a key employee during 2008 is an employee or former employee who is one of the following individuals:
  An officer having annual pay of more than $150,000            
  An individual who for 2008 was either of the following:           
    (a) A 5-percent owner of your business.               
    (b) A 1-percent owner of your business whose annual pay was more than $150,000.   
(6) Note that although the amount is included in Box 1, no federal income tax withholding is required. 
                   
                   
Table 2-
Applicable to greater-than-2-percent shareholders
               

Return to Table1
Employee Fringe Benefits
Report on Form W-2 in Box
1 3 & 5  10 12 Code  13 14
  Accident and Health Benefits (See Footnote 1)           
    Long-term care premiums paid through a cafeteria or flex spending account  yes  yes  no  no  –  no  no 
    Long-term care premiums not paid through a cafeteria or flex spending account  yes  no  no  no  –  no  no 
 
Non-Cash Achievement Awards 		              
    Up to $1,600 from a qualified plan or $400 from a non-qualified plan  no  no  no  no  –  no  optional 
    The amount over $1,600 from a qualified plan or $400 from a non-qualified plan  yes  yes  no  no  –  no  – 
 
Adoption Assistance 		              
    Paid from an adoption assistance program  yes  yes  no  no  –  no  – 
    Paid or reimbursed from a cafeteria plan  yes  yes  no  no  –  no  – 
 
Dependent Care Assistance Programs 		              
    Cash reimbursements up to limits of $5,000 MFJ or $2,250 MFS or Single  no  no  yes  no  –  no  no 
    FMV of on-site facilities less the amount paid by employee up to limits of $5,000 MFJ or $2,250 MFS or Single  no  no  yes  no  –  no  no 
    Amount reimbursed or value in excess of above stated limits  yes  yes  yes  no  –  no  optional 
 
Educational Assistance 		              
    Up to $5,250 paid from a qualified plan to maintain or improve job skills  no  no  no  no  –  no  no 
    Excess of $5,250 or paid from a non-qualifying plan but considered a working condition fringe benefit  no  no  no  no  –  no  no 
    Paid as a working condition fringe benefit  no  no  no  no  –  no  no 
    Excess of $5,250 or paid from a non-qualifying plan and not considered a working condition fringe benefit  yes  yes  no  no  –  no  no 
 
Employee Discounts 		              
    Discounts not in excess of 20 percent of services  no  no  no  no  –  no  no 
    Discounts not in excess of the employer’s cost  no  no  no  no  –  no  no 
    Discounts in excess of above limits  yes  yes  no  no  –  no  no 
 
Group-Term Life Insurance Premiums (See Footnote 1) 		          
    Paid to current and former employees up to $50,000 of coverage  yes  no  no  no  –  no  no 
    Paid to current employees in excess of $50,000 of coverage up to FICA wage limit  yes  yes  no  yes  C  no  no 
 
Health Savings Accounts (HSAs) 
yes 
no 
no 
yes 
W 
no 
no 
 
Moving Expense Reimbursements (See Footnote 2) 		        
    Paying as an employee: Paid or reimbursed deductible moving expenses  no  no  no  yes  P  no  no 
    Paying as an employee: Paid or reimbursed non-deductible moving expenses  yes  yes  no  no  –  no  optional 
    Paying as a partner: Paid or reimbursed deductible moving expenses  yes  yes  no  no  –  no  optional 
    Paying as a partner: Paid or reimbursed non-deductible moving expenses  yes  yes  no  no  –  no  optional 
 
Qualified Transportation Benefits 		              
    Monthly limits applied to employees do not apply to greater-than-2-percent shareholders  yes  yes  no  no  –  no  optional 
                   
Footnotes               
  (1) Note that although the amount is included in Box 1, no federal income tax withholding is required. 
  (2) IRS Pub. 15-B (Employer’s Tax Guide to Fringe Benefits) lists 2-percent shareholders as nonemployees for the moving expense reimbursement exclusion. However, the regulations do not define “employee” for purposes of this exclusion, and under §132(g), qualified moving expense reimbursements can be received by any individual, not just an employee. Therefore, it is not entirely clear if the IRS’ position is correct. 
 
 
 
                   
  (2) IRS Pub. 15-B (Employer’s Tax Guide to Fringe Benefits) lists 2-percent shareholders as nonemployees for the moving expense reimbursement exclusion. However, the regulations do not define “employee” for purposes of this exclusion, and under §132(g), qualified moving expense reimbursements can be received by any individual, not just an employee. Therefore, it is not entirely clear if the IRS’ position is correct. 
 
 
 
                   
 		  
     
   

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