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File 2010 taxes online late 2. File 2010 taxes online late   Foreclosures and Repossessions Table of Contents Amount realized and ordinary income on a recourse debt. File 2010 taxes online late Amount realized on a nonrecourse debt. File 2010 taxes online late If you do not make payments you owe on a loan secured by property, the lender may foreclose on the loan or repossess the property. File 2010 taxes online late The foreclosure or repossession is treated as a sale from which you may realize gain or loss. File 2010 taxes online late This is true even if you voluntarily return the property to the lender. File 2010 taxes online late If the outstanding loan balance was more than the FMV of the property and the lender cancels all or part of the remaining loan balance, you also may realize ordinary income from the cancellation of debt. File 2010 taxes online late You must report this income on your return unless certain exceptions or exclusions apply. File 2010 taxes online late See chapter 1 for more details. File 2010 taxes online late Borrower's gain or loss. File 2010 taxes online late    You figure and report gain or loss from a foreclosure or repossession in the same way as gain or loss from a sale. File 2010 taxes online late The gain is the difference between the amount realized and your adjusted basis in the transferred property (amount realized minus adjusted basis). File 2010 taxes online late The loss is the difference between your adjusted basis in the transferred property and the amount realized (adjusted basis minus amount realized). File 2010 taxes online late For more information on figuring gain or loss from the sale of property, see Gain or Loss From Sales and Exchanges in Publication 544. File 2010 taxes online late You can use Table 1-1 to figure your ordinary income from the cancellation of debt and your gain or loss from a foreclosure or repossession. File 2010 taxes online late Amount realized and ordinary income on a recourse debt. File 2010 taxes online late    If you are personally liable for the debt, the amount realized on the foreclosure or repossession includes the smaller of: The outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, or The FMV of the transferred property. File 2010 taxes online late The amount realized also includes any proceeds you received from the foreclosure sale. File 2010 taxes online late If the FMV of the transferred property is less than the total outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, the difference is ordinary income from the cancellation of debt. File 2010 taxes online late You must report this income on your return unless certain exceptions or exclusions apply. File 2010 taxes online late See chapter 1 for more details. File 2010 taxes online late       Example 1. File 2010 taxes online late Tara bought a new car for $15,000. File 2010 taxes online late She made a $2,000 downpayment and borrowed the remaining $13,000 from the dealer's credit company. File 2010 taxes online late Tara is personally liable for the loan (recourse debt) and the car is pledged as security for the loan. File 2010 taxes online late On August 1, 2013, the credit company repossessed the car because Tara had stopped making loan payments. File 2010 taxes online late The balance due after taking into account the payments Tara made was $10,000. File 2010 taxes online late The FMV of the car when it was repossessed was $9,000. File 2010 taxes online late On November 15, 2013, the credit company forgave the remaining $1,000 balance on the loan due to insufficient assets. File 2010 taxes online late In this case, the amount Tara realizes is $9,000. File 2010 taxes online late This is the smaller of: The $10,000 outstanding debt immediately before the repossession reduced by the $1,000 for which she remains personally liable immediately after the repossession ($10,000 − $1,000 = $9,000), or The $9,000 FMV of the car. File 2010 taxes online late Tara figures her gain or loss on the repossession by comparing the $9,000 amount realized with her $15,000 adjusted basis. File 2010 taxes online late She has a $6,000 nondeductible loss. File 2010 taxes online late After the cancellation of the remaining balance on the loan in November, Tara also has ordinary income from cancellation of debt in the amount of $1,000 (the remaining balance on the $10,000 loan after the $9,000 amount satisfied by the FMV of the repossessed car). File 2010 taxes online late Tara must report this $1,000 on her return unless one of the exceptions or exclusions described in chapter 1 applies. File 2010 taxes online late Example 2. File 2010 taxes online late Lili paid $200,000 for her home. File 2010 taxes online late She made a $15,000 downpayment and borrowed the remaining $185,000 from a bank. File 2010 taxes online late Lili is personally liable for the mortgage loan and the house secures the loan. File 2010 taxes online late In 2013, the bank foreclosed on the mortgage because Lili stopped making payments. File 2010 taxes online late When the bank foreclosed the mortgage, the balance due was $180,000, the FMV of the house was $170,000, and Lili's adjusted basis was $175,000 due to a casualty loss she had deducted. File 2010 taxes online late At the time of the foreclosure, the bank forgave $2,000 of the $10,000 debt in excess of the FMV ($180,000 minus $170,000). File 2010 taxes online late She remained personally liable for the $8,000 balance. File 2010 taxes online late In this case, Lili has ordinary income from the cancellation of debt in the amount of $2,000. File 2010 taxes online late The $2,000 income from the cancellation of debt is figured by subtracting the $170,000 FMV of the house from the $172,000 difference between her total outstanding debt immediately before the transfer of property and the amount for which she remains personally liable immediately after the transfer ($180,000 minus $8,000). File 2010 taxes online late She is able to exclude the $2,000 of canceled debt from her income under the qualified principal residence indebtedness rules discussed earlier. File 2010 taxes online late Lili must also determine her gain or loss from the foreclosure. File 2010 taxes online late In this case, the amount that she realizes is $170,000. File 2010 taxes online late This is the smaller of: (a) the $180,000 outstanding debt immediately before the transfer reduced by the $8,000 for which she remains personally liable immediately after the transfer ($180,000 − $8,000 = $172,000) or (b) the $170,000 FMV of the house. File 2010 taxes online late Lili figures her gain or loss on the foreclosure by comparing the $170,000 amount realized with her $175,000 adjusted basis. File 2010 taxes online late She has a $5,000 nondeductible loss. File 2010 taxes online late Table 1-1. File 2010 taxes online late Worksheet for Foreclosures and Repossessions Part 1. File 2010 taxes online late Complete Part 1 only if you were personally liable for the debt (even if none of the debt was canceled). File 2010 taxes online late Otherwise, go to Part 2. File 2010 taxes online late 1. File 2010 taxes online late Enter the amount of outstanding debt immediately before the transfer of property reduced by any amount for which you remain personally liable immediately after the transfer of property   2. File 2010 taxes online late Enter the fair market value of the transferred property   3. File 2010 taxes online late Ordinary income from the cancellation of debt upon foreclosure or repossession. File 2010 taxes online late * Subtract line 2 from line 1. File 2010 taxes online late If less than zero, enter zero. File 2010 taxes online late Next, go to Part 2   Part 2. File 2010 taxes online late Gain or loss from foreclosure or repossession. File 2010 taxes online late   4. File 2010 taxes online late Enter the smaller of line 1 or line 2. File 2010 taxes online late If you did not complete Part 1 (because you were not personally liable for the debt), enter the amount of outstanding debt immediately before the transfer of property   5. File 2010 taxes online late Enter any proceeds you received from the foreclosure sale   6. File 2010 taxes online late Add line 4 and line 5   7. File 2010 taxes online late Enter the adjusted basis of the transferred property   8. File 2010 taxes online late Gain or loss from foreclosure or repossession. File 2010 taxes online late Subtract line 7 from line 6   * The income may not be taxable. File 2010 taxes online late See chapter 1 for more details. File 2010 taxes online late Amount realized on a nonrecourse debt. File 2010 taxes online late    If you are not personally liable for repaying the debt secured by the transferred property, the amount you realize includes the full amount of the outstanding debt immediately before the transfer. File 2010 taxes online late This is true even if the FMV of the property is less than the outstanding debt immediately before the transfer. File 2010 taxes online late Example 1. File 2010 taxes online late Tara bought a new car for $15,000. File 2010 taxes online late She made a $2,000 downpayment and borrowed the remaining $13,000 from the dealer's credit company. File 2010 taxes online late Tara is not personally liable for the loan (nonrecourse), but pledged the new car as security for the loan. File 2010 taxes online late On August 1, 2013, the credit company repossessed the car because Tara had stopped making loan payments. File 2010 taxes online late The balance due after taking into account the payments Tara made was $10,000. File 2010 taxes online late The FMV of the car when it was repossessed was $9,000. File 2010 taxes online late The amount Tara realized on the repossession is $10,000. File 2010 taxes online late That is the outstanding amount of debt immediately before the repossession, even though the FMV of the car is less than $10,000. File 2010 taxes online late Tara figures her gain or loss on the repossession by comparing the $10,000 amount realized with her $15,000 adjusted basis. File 2010 taxes online late Tara has a $5,000 nondeductible loss. File 2010 taxes online late Example 2. File 2010 taxes online late Lili paid $200,000 for her home. File 2010 taxes online late She made a $15,000 downpayment and borrowed the remaining $185,000 from a bank. File 2010 taxes online late She is not personally liable for the loan, but grants the bank a mortgage. File 2010 taxes online late The bank foreclosed on the mortgage because Lili stopped making payments. File 2010 taxes online late When the bank foreclosed on the mortgage, the balance due was $180,000, the FMV of the house was $170,000, and Lili's adjusted basis was $175,000 due to a casualty loss she had deducted. File 2010 taxes online late The amount Lili realized on the foreclosure is $180,000, the outstanding debt immediately before the foreclosure. File 2010 taxes online late She figures her gain or loss by comparing the $180,000 amount realized with her $175,000 adjusted basis. File 2010 taxes online late Lili has a $5,000 realized gain. File 2010 taxes online late See Publication 523 to figure and report any taxable amount. File 2010 taxes online late Forms 1099-A and 1099-C. File 2010 taxes online late    A lender who acquires an interest in your property in a foreclosure or repossession should send you Form 1099-A, Acquisition or Abandonment of Secured Property, showing information you need to figure your gain or loss. File 2010 taxes online late However, if the lender also cancels part of your debt and must file Form 1099-C, the lender can include the information about the foreclosure or repossession on that form instead of on Form 1099-A. File 2010 taxes online late The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. File 2010 taxes online late For foreclosures or repossessions occurring in 2013, these forms should be sent to you by January 31, 2014. File 2010 taxes online late Prev  Up  Next   Home   More Online Publications
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File 2010 taxes online late Publication 957 - Main Content Table of Contents 1. File 2010 taxes online late What is Back Pay?Reporting Back Pay Back Pay Under a Statute Nonstatutory Back Pay Format for Report to the SSA Questions 2. File 2010 taxes online late Special Wage PaymentsReporting Special Wage Payments Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments Nonqualified Deferred Compensation and Section 457 Plans Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) PlansSpecial rule for box 11 of Form W-2 (distributions and deferral in the same year). File 2010 taxes online late 1. File 2010 taxes online late What is Back Pay? Back pay is pay received in a tax year(s) for actual or deemed employment in an earlier tax year(s). File 2010 taxes online late For social security coverage and benefit purposes, all back pay, whether or not under a statute, is wages if it is payment for covered employment. File 2010 taxes online late Damages for personal injury, interest, penalties, and legal fees included with back pay awards are not wages. File 2010 taxes online late Report all back pay. File 2010 taxes online late However, the tax year(s) for which back pay is credited as wages for social security purposes is different if it is awarded under a statute. File 2010 taxes online late See Back Pay Under a Statute , later, for more information. File 2010 taxes online late Reporting Back Pay The Internal Revenue Service (IRS) and the SSA consider back pay awards to be wages. File 2010 taxes online late However, for income tax purposes, the IRS treats all back pay as wages in the year paid. File 2010 taxes online late Employers should use Form W-2, Wage and Tax Statement, or electronic wage reports to report back pay as wages in the year they actually pay the employee. File 2010 taxes online late The SSA no longer accepts reports on tapes, cartridges, and diskettes. File 2010 taxes online late Example. File 2010 taxes online late In 2012, Terry Morris earned wages of $50,000. File 2010 taxes online late In the same year, she received $100,000 in settlement of a back pay case against her employer that covered the periods January 2007 through December 2011. File 2010 taxes online late Her employer properly reflected social security wages of $110,100 and Medicare wages of $150,000 on her 2012 Form W-2. File 2010 taxes online late However, if an employer did not include back pay wages on a previously filed Form W-2, magnetic media, or electronically filed wage report, the employer should prepare a wage correction report, Form W-2c, Corrected Wage and Tax Statement, or electronically filed report, to add the back pay award to the wages previously reported. File 2010 taxes online late Example. File 2010 taxes online late If, in the above example, Terry Morris' employer had prepared her 2012 Form W-2 reporting social security and Medicare wages of only $50,000 each, the employer would have to correct that report. File 2010 taxes online late A Form W-2c correcting the 2012 Form W-2 would show previously reported social security and Medicare wages of $50,000 and the correct amount of $110,100 for social security wages and $150,000 for Medicare wages. File 2010 taxes online late SSA treatment of back pay under a statute. File 2010 taxes online late   Under the law, the SSA credits back pay awarded under a statute to an individual's earnings record in the period(s) the wages should have been paid. File 2010 taxes online late This is important because wages not credited to the proper year may result in lower social security benefits or failure to meet the requirements for benefits. File 2010 taxes online late   However, back pay under statute payments will remain posted to the employee's social security earnings record in the year reported on Form W-2 (or Form W-2c) unless the employer or employee notifies the SSA (in a separate, special report) of the back pay under a statute payment. File 2010 taxes online late Then, the SSA can allocate the statutory back pay to the appropriate periods. File 2010 taxes online late   If a back pay award is not made under a statute, the SSA credits back pay as wages in the year paid. File 2010 taxes online late    If employers do notify the SSA of this payment, they should prepare a special report (with the information noted below) and send it to: Social Security Administration Attn: CPS Back Pay Staff 7-B-15 SWT 1500 Woodlawn Drive Baltimore, MD 21241-0001 Be sure to send this special report to the above address because the SSA handles it separately from other reports. File 2010 taxes online late    If you paid the back pay award in the same tax year to which it applies, report the wages on that year's Form W-2. File 2010 taxes online late No further action is necessary. File 2010 taxes online late Example. File 2010 taxes online late In 2012, Judy Wilson received a salary of $30,000 and a back pay under statute award of $2,000 for the period January through June 2012. File 2010 taxes online late Her employer properly reported wages of $32,000 for social security and Medicare on her 2012 Form W-2. File 2010 taxes online late No further action is necessary. File 2010 taxes online late Information the SSA needs to properly credit back pay under a statute (special report). File 2010 taxes online late   After you complete the special report, you or the employee should send it to the SSA when or after you submit the Form W-2 (on paper or electronically) to the SSA for the year you pay the statutory back pay to the employee. File 2010 taxes online late There is no statute of limitations on the filing of the special report to enable the SSA to allocate the wages. File 2010 taxes online late The special report must include the following information. File 2010 taxes online late The employer's name, address, and employer identification number (EIN). File 2010 taxes online late A signed statement citing the federal or state statute under which the payment was made. File 2010 taxes online late If the statute is not identified, the SSA will assume the payment was not under a statute and will not allocate to earlier period(s). File 2010 taxes online late The name and telephone number of a person to contact. File 2010 taxes online late The SSA may have additional questions concerning the back pay case or the individual employee's information. File 2010 taxes online late A list of employees receiving the payment and the following information for each employee: The tax year you paid and reported the back pay. File 2010 taxes online late The employee's social security number (SSN). File 2010 taxes online late The employee's name (as shown on his or her social security card). File 2010 taxes online late The amount of the back pay award excluding any amounts specifically designated otherwise, for example, damages for personal injury, interest, penalties, and legal fees. File 2010 taxes online late The period(s) the back pay award covers (beginning and ending dates—month and year). File 2010 taxes online late The other wages paid subject to social security and/or Medicare taxes and reported in the same year as the back pay award (if none, show zero)*. File 2010 taxes online late Do not include the back pay award shown in that wage report. File 2010 taxes online late If you originally submitted the report under an establishment number, show that number and the amount of money that is to remain under that establishment number. File 2010 taxes online late The amount to allocate to each reporting period*. File 2010 taxes online late This includes any amount you want allocated (if applicable) to the tax year of the award payment. File 2010 taxes online late If you do not give the SSA specific amounts to allocate, the SSA does the allocation by dividing the back pay award by the number of months or years covered by the award. File 2010 taxes online late *Note. File 2010 taxes online late   For periods before January 1, 1978 (before January 1, 1981, for state and local government employers covered by a Section 218 agreement), show the wage amounts for each calendar quarter ending March 31, June 30, September 30, and December 31. File 2010 taxes online late For all tax years, show and identify the social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) separately. File 2010 taxes online late MQGE is applicable to federal employees beginning in 1983, and for certain state and local government employees beginning in 1986. File 2010 taxes online late For tax years 1991 and later, list the social security and Medicare wages separately. File 2010 taxes online late If you originally reported the individual's wages under an establishment or payroll record unit number, show the amount of wages to remain in the award year for that number and furnish that number to the SSA along with the EIN. File 2010 taxes online late Back Pay Under a Statute Back pay awarded under a statute is a payment by an employer following an award, determination, or agreement approved or sanctioned by a court or government agency responsible for enforcing a federal or state statute that protects an employee's right to employment or wages. File 2010 taxes online late Examples of pertinent statutes include: Age Discrimination in Employment Act, Americans with Disabilities Act, Equal Pay Act, Fair Labor Standards Act, National Labor Relations Act, State minimum wage laws, and State statutes that protect rights to employment and wages. File 2010 taxes online late Payments based on laws that have a similar effect to those listed above also may qualify as payments made under a statute. File 2010 taxes online late Back pay awards, under some of the statutes listed above, may be compensation for personal injury and not pay for employment. File 2010 taxes online late Such awards are not wages for social security coverage purposes. File 2010 taxes online late If a court-approved or sanctioned settlement agreement states that the agreement is not an admission of discrimination, liability, or act of wrongdoing, the statement does not change the nature of a back pay award. File 2010 taxes online late The payments made in such a settlement may still be back pay and wages under the rules discussed here. File 2010 taxes online late Nonstatutory Back Pay A payment for back wages negotiated between an employer and employee without an award, determination, or agreement approved or sanctioned by a court or government agency, the payment is not made under a statute. File 2010 taxes online late Delayed wage payments and retroactive pay increases resulting from union negotiation or payments under local ordinances or regulations are back pay and are wages. File 2010 taxes online late However, they are not payments made under a statute. File 2010 taxes online late If you are uncertain whether the back pay award was under a qualified statute, you may need to contact your personnel department or legal counsel or the attorney who filed the suit. File 2010 taxes online late Format for Report to the SSA Use the format shown in Table 1, later, to send the SSA the information needed to properly credit back pay under a statute. File 2010 taxes online late In a cover letter, include: Name and address of the employer, Statute under which you paid the back pay, Name and telephone number of the employer contact, and Signature of the reporting official. File 2010 taxes online late Under certain circumstances, back pay may be a special wage payment and excluded from wages counted under the social security earnings test. File 2010 taxes online late If you pay back pay to an employee age 61 or older, report it to the SSA in accordance with this section. File 2010 taxes online late Read Special Wage Payments, later, for additional reporting instructions. File 2010 taxes online late Questions If you have questions concerning back pay under a statute, call the SSA at 1-800-772-6270. File 2010 taxes online late Exception. File 2010 taxes online late   If you are a state or local government employer who was covered by an agreement under Section 218 of the Social Security Act before January 1, 1987, and you paid a back pay award before January 1, 1987, which you did not report to the SSA, contact your state Social Security Administrator's office. File 2010 taxes online late Table 1. File 2010 taxes online late Format for Report (Under Covering Letter) to Request SSA to Allocate Back Pay Under Statute Wages Employer's EIN: xx-xxxxxxx Tax Year in Which Award Payment Was Paid: 2012 (1) SSN and Employee Name (2)1 Award Amount and Period(s) (3)2,3 Other Soc. File 2010 taxes online late Sec. File 2010 taxes online late /Med. File 2010 taxes online late Wages Paid In Award Year (4)3 Allocation     Soc. File 2010 taxes online late Sec. File 2010 taxes online late Med. File 2010 taxes online late /MQGE Year Soc. File 2010 taxes online late Sec. File 2010 taxes online late Med. File 2010 taxes online late /MQGE xxx-xx-xxxx HELEN T. File 2010 taxes online late SMITH $100,000 1/2009 - 12/2012 $40,000 $40,000 2009 2010 2011 2012 $20,000 25,000 27,000 28,000 $20,000 25,000 27,000 28,000 xxx-xx-xxxx SAM W. File 2010 taxes online late EVANS 30,000 7/89-12/91 -0- -0- 1989 1990 1991   6,000 12,000 12,000 xxx-xx-xxxx ROLAND S. File 2010 taxes online late ADAMS 15,000 7/80-12/81 -0- -0- 9/80 12/80 1981 3,500 3,500 8,000   1Exclude amounts specifically designated as damages, penalties, etc. File 2010 taxes online late  2Exclude the amount of back pay, if any, included in that amount. File 2010 taxes online late  3For periods before January 1, 1978 (and for state and local government (Section 218) employers before January 1, 1981), show the wage amounts by calendar quarters. File 2010 taxes online late The social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) must be shown separately FOR ALL YEARS. File 2010 taxes online late (Wages subject ONLY to MQGE would be shown in the Medicare/MQGE column; no wages would be shown in the Soc. File 2010 taxes online late Sec. File 2010 taxes online late column. File 2010 taxes online late ) For tax years 1991 and later, the social security and Medicare wages must be listed separately. File 2010 taxes online late Explanation of examples. File 2010 taxes online late Helen T. File 2010 taxes online late Smith–The back pay award, excluding interest, was $100,000 for the periods 1/2009-12/2012. File 2010 taxes online late In 2012, this employee was also paid $40,000 in other wages. File 2010 taxes online late (Her Form W-2 for 2012 reported $110,100 for social security and $140,000 for Medicare. File 2010 taxes online late The SSA allocation will result in adjusted posted wages of $68,000 for social security and $68,000 for Medicare for 2012. File 2010 taxes online late ) Sam W. File 2010 taxes online late Evans–The back pay award was $30,000 for the periods 7/89-12/91. File 2010 taxes online late This employee was hired in 1989 and was subject to MQGE only. File 2010 taxes online late He was no longer employed by this governmental employer in 2012. File 2010 taxes online late (His Form W-2 for 2012 reported $30,000 for social security and $30,000 for Medicare. File 2010 taxes online late After the SSA allocation, he will not have any net posted wages for 2012. File 2010 taxes online late ) Roland S. File 2010 taxes online late Adams–The back pay award was $15,000 for the periods 7/80-12/81. File 2010 taxes online late He was no longer employed by this state and local government (Section 218) employer in 2012. File 2010 taxes online late (His Form W-2 for 2012 reported $15,000 for social security and $15,000 for Medicare; after the SSA allocation, he will not have any net posted wages for 2012. File 2010 taxes online late ) If the state Social Security Administrator's office needs more information, they can contact the SSA at the following address:   Social Security Administration Office of Income Security Programs Office of Earnings and Program Integrity Policy 6401 Security Boulevard 2506 OPS Baltimore, MD 21235 2. File 2010 taxes online late Special Wage Payments A special wage payment (SWP) is an amount paid by an employer to an employee (or former employee) for services performed in a prior year. File 2010 taxes online late Employers should report to the SSA special wage payments made to employees and former employees who are recipients of social security retirement benefits. File 2010 taxes online late Special wage payments made to a retired employee receiving social security or to an employee who continues to work while receiving social security benefits may reduce the benefits the individual receives if not reported to the SSA. File 2010 taxes online late Special wage payments may include (but are not limited to): Accumulated sick and vacation pay, Back pay, Bonuses, Deferred compensation, Payments because of retirement, Sales commissions, Severance pay, and Stock options. File 2010 taxes online late Note. File 2010 taxes online late Payments made after retirement that are part of the normal payroll cycle should not be routinely reported as special wage payments. File 2010 taxes online late Earnings Test. File 2010 taxes online late   Benefits paid to a social security beneficiary under full retirement age may be reduced if the beneficiary continues to work. File 2010 taxes online late The SSA uses the information in boxes 1, 3, and 5 of Form W-2 to determine the beneficiary's current year earnings. File 2010 taxes online late Special wage payments, which are for services performed in a prior year, will increase the current year earnings on Form W-2, which also may result in a reduction in the beneficiary's benefits. File 2010 taxes online late If a benefit is reduced because of a special wage payment, the beneficiary must get documentation from the employer before the SSA can restore the deducted portion. File 2010 taxes online late Therefore, employer reports of special wage payments help prevent incorrect benefit reductions. File 2010 taxes online late Reporting Special Wage Payments Employers must report special wage payments for income tax purposes and social security and Medicare taxes in the year received. File 2010 taxes online late Report income, social security, and/or Medicare taxes for special wage payments on Form W-2. File 2010 taxes online late See Nonqualified Deferred Compensation and Section 457 Plans, later, for reporting nonqualified deferred compensation plan deferrals and payments on Form W-2. File 2010 taxes online late In addition, report to the SSA special wage payments made during the reporting year to retired employees and employees who continue to work while receiving social security benefits. File 2010 taxes online late Submit reports after the close of the tax year. File 2010 taxes online late To avoid delays in processing, submit reports in time to reach the SSA by April 1. File 2010 taxes online late Use one of the following reporting methods. File 2010 taxes online late Electronic reporting. File 2010 taxes online late   Special wage payment files can be sent electronically by logging onto Business Services Online (BSO) via the socialsecurity. File 2010 taxes online late gov website. File 2010 taxes online late BSO enables organizations and authorized individuals to conduct business with and submit confidential information to the Social Security Administration. File 2010 taxes online late You must register to use this website. File 2010 taxes online late The web address is www. File 2010 taxes online late socialsecurity. File 2010 taxes online late gov/bso/bsowelcome. File 2010 taxes online late htm. File 2010 taxes online late   Use the specifications and record layout shown in  Table 2, later. File 2010 taxes online late Only one file at a time may be submitted. File 2010 taxes online late If your file is large (>10MB), or you have a slow internet connection, the transmission will be faster if the file is zipped. File 2010 taxes online late A zipped file contains a file that has been compressed to reduce its file size. File 2010 taxes online late WinZip and PKZIP are examples of acceptable compression packages. File 2010 taxes online late   Electronic submissions not meeting the specifications in Table 2 will be rejected. File 2010 taxes online late Paper listing. File 2010 taxes online late   A paper listing can be used to report special wage payments to several employees. File 2010 taxes online late Use the format shown in Table 3, later. File 2010 taxes online late Submit paper listings to the local SSA office nearest your place of business. File 2010 taxes online late Visit www. File 2010 taxes online late socialsecurity. File 2010 taxes online late gov/locator to find a Social Security office near you. File 2010 taxes online late Form SSA-131. File 2010 taxes online late   Use Form SSA-131 to report special wage payments made to an employee. File 2010 taxes online late Also use this form to report nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in box 11 of Form W-2. File 2010 taxes online late    This image is too large to be displayed in the current screen. File 2010 taxes online late Please click the link to view the image. File 2010 taxes online late Publication 957 Reporting Back Pay to the Social Security Administration Instructions for Form SSA–131   EMPLOYER INSTRUCTIONS FOR COMPLETING SPECIAL WAGE PAYMENT FORM 1. File 2010 taxes online late Provide the EIN that was used or will be used to report the employee's wages on the Form W-2. File 2010 taxes online late 2. File 2010 taxes online late Enter the date the employee retired. File 2010 taxes online late Enter “Not Retired” if the employee has not retired. File 2010 taxes online late 3. File 2010 taxes online late Enter the date that the employee last performed services; was not expected to return to work; and was not subject to recall to render additional services. File 2010 taxes online late This date should be the same as or earlier than the date in item “2”. File 2010 taxes online late Enter “Not Retired” if the employee has not retired. File 2010 taxes online late 4. File 2010 taxes online late Enter the wages that were paid to the employee in the tax year that were for services that were performed in years prior to the tax year or that were paid on account of retirement. File 2010 taxes online late  Examples (not all inclusive) of payments to be included: Payments in lieu of vacation that were earned in a year prior to the tax year. File 2010 taxes online late Accumulated sick payments which were paid in a lump sum based on “retirement” as the sole condition of payment. File 2010 taxes online late Accumulated sick payments paid at or after the date in item 3, which were earned in a year prior to the tax year. File 2010 taxes online late Payments “on account of retirement”–dismissal, severance or termination pay paid because of retirement. File 2010 taxes online late Bonuses which are paid pursuant to a prior contract, agreement or promise causing the employee to expect such payments regularly; or announced to induce the employee to work more steadily, rapidly or efficiently or to remain with the employer. File 2010 taxes online late Stock Options. File 2010 taxes online late   Do not include in item “4” payments: For annual, sick, holiday, or vacation pay if used (absence from work) prior to the date of retirement (earlier of items “2” or “3”). File 2010 taxes online late That were reported or will be reported under “Nonqualified Plans” on the Form W-2. File 2010 taxes online late That were deducted from the employee's wages and paid to a deferred compensation plan (e. File 2010 taxes online late g. File 2010 taxes online late , 401k). File 2010 taxes online late Employees health and dental plan benefits (non-covered/non-taxable for Social Security Wages). File 2010 taxes online late Bonuses earned and paid in the tax year. File 2010 taxes online late 5. File 2010 taxes online late Check whether payments listed in item 4 will be made for years after the tax year. File 2010 taxes online late If yes, please show the amounts and years in which these will be paid, if known. File 2010 taxes online late 6. File 2010 taxes online late Nonqualified deferred compensation and section 457 plans only. File 2010 taxes online late If you were unable to report nonqualified deferred compensation or section 457 plan payments and deferrals (contributions) on Form W-2 because both payments and deferrals occurred during the year, show the amount of wages earned by the employee during the tax year. File 2010 taxes online late Generally, the wages earned will be the compensation reported in block 1 of Form W-2 less payments from a nonqualified deferred compensation (or 457) plan, but including any amounts deferred under the plan during the tax year (See IRS Publication 957). File 2010 taxes online late Paperwork/Privacy Act Notice: This report is authorized by regulation 20 CFR 404. File 2010 taxes online late 702. File 2010 taxes online late The information that you provide will be used in making a determination regarding the amount of Social Security benefits payable to the above named individual. File 2010 taxes online late While your response is voluntary, if you do not respond we may not be able to make a correct determination regarding the amount of Social Security benefits payable to the above named individual for the year in question. File 2010 taxes online late We may also use the information you give us when we match records by computer. File 2010 taxes online late Matching programs compare our records with those of other Federal, State, or local government agencies. File 2010 taxes online late Many agencies may use matching programs to find or prove that a person qualifies for benefits paid by the Federal Government. File 2010 taxes online late The law allows us to do this even if you do not agree to it. File 2010 taxes online late Explanations about these and other reasons why information you provide us may be used or given out are available in Social Security Offices. File 2010 taxes online late If you want to learn more about this, contact any Social Security Office. File 2010 taxes online late The Paperwork Reduction Act: This information collection meets the clearance requirements of 44 U. File 2010 taxes online late S. File 2010 taxes online late C. File 2010 taxes online late §3507, as amended by Section 2 of the Paperwork Reduction Act of 1995. File 2010 taxes online late You are not required to answer these questions unless we display a valid Office of Management and Budget control number. File 2010 taxes online late We estimate that it will take you about 20 minutes to read the instructions, gather the necessary facts, and answer the questions. File 2010 taxes online late Form SSA-131 (8-2001) EF (06-2002)   Submit Form SSA-131 to the SSA office nearest your place of business. File 2010 taxes online late Or, the employee can submit it to the SSA office handling the claim. File 2010 taxes online late You or the employee must submit this form before the SSA can exclude the special wage payments for purposes of the earnings test. File 2010 taxes online late If reporting on more than one employee, complete a separate Form SSA-131 for each employee or use the paper listing format (except for reporting nonqualified and section 457 plan deferrals and payments) in Table 3. File 2010 taxes online late Do not report payments from nonqualified deferred compensation or section 457 plans that were reported in box 11 of Form W-2. File 2010 taxes online late Use Form SSA-131 if deferrals to and payments from nonqualified or section 457 plans occurred during the tax year. File 2010 taxes online late Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments A nonstatutory (nonqualified) option to purchase stock which is exercised in a year after the year in which the option was earned is a special wage payment. File 2010 taxes online late It should not count for the social security earnings test. File 2010 taxes online late Nonstatutory (nonqualified) options exercised as special wage payments by retired employees or employees who continue to work while receiving social security benefits should be reported by employers using the above reporting methods. File 2010 taxes online late Nonqualified Deferred Compensation and Section 457 Plans A nonqualified deferred compensation plan is a plan or arrangement established and maintained by an employer for one or more of its employees that provides for the deferral of compensation, but does not meet the requirements for a tax-qualified deferred compensation plan. File 2010 taxes online late For social security and Medicare purposes, deferred compensation plans for employees of state and local governments (section 457 plans) are treated the same as nonqualified plans. File 2010 taxes online late Nonqualified and section 457 plans are reported differently than other special wage payments. File 2010 taxes online late See Reporting Amounts Deferred to Nonqualified and Section 457 Plans below for specific instructions. File 2010 taxes online late Reporting Amounts Deferred to Nonqualified and Section 457 Plans Generally, when the related services are performed, nonqualified deferred compensation is subject to social security and Medicare tax when deferred. File 2010 taxes online late However, if nonqualified and section 457 plans contain provisions that delay the employee's right to receive payments from the plan, a period of substantial risk of forfeiture exists. File 2010 taxes online late The plans' deferrals, or contributions, are not subject to social security and Medicare taxes until the period of substantial risk of forfeiture ends. File 2010 taxes online late No risk of forfeiture. File 2010 taxes online late   If there is no risk of forfeiture, report wage amounts deferred to a nonqualified deferred compensation or section 457 plan in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. File 2010 taxes online late Example. File 2010 taxes online late Company X's nonqualified deferred compensation plan allows the deferral of up to $20,000 of employee salaries each year. File 2010 taxes online late The plan has no risk of forfeiture. File 2010 taxes online late In 2012, Employee A defers $20,000 to the plan from a total salary of $200,000. File 2010 taxes online late Form W-2 Completion Amount Box 1 $200,000 Box 3* 110,100 Box 5 200,000 *Wage base maximum for tax year 2012 Risk of forfeiture lapses before retirement. File 2010 taxes online late   If the substantial risk of forfeiture lapses before the employee retires, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. File 2010 taxes online late The accumulated deferrals are reported along with any other social security and Medicare wages earned during the year. File 2010 taxes online late   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. File 2010 taxes online late If the employee continues working, future deferrals are social security and Medicare wages when they are earned. File 2010 taxes online late    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. File 2010 taxes online late Risk of forfeiture lapses at retirement. File 2010 taxes online late   When an employee's right to a payment is contingent upon working until retirement, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, as social security and/or Medicare wages in the year of retirement. File 2010 taxes online late Add the amount to other wages paid in that year, and enter in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. File 2010 taxes online late   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. File 2010 taxes online late    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. File 2010 taxes online late Example—risk of forfeiture. File 2010 taxes online late At the end of the risk-of-forfeiture period for Company Y's nonqualified deferred compensation plan, Employee B's accumulated deferrals, plus interest earned by the plan, are $120,000, not including B's $20,000 deferral for this year. File 2010 taxes online late B's wages, including this year's deferred amount, are $80,000. File 2010 taxes online late Form W-2 Completion Amount Box 1 $60,000 Box 3* 110,100 Box 5 200,000 Box 11 120,000 *Wage base maximum for tax year 2012 Reporting Payments From Nonqualified and Nongovernmental Section 457 Plans When an employee or former employee retires and begins receiving payments (distributions) from a nonqualified or nongovernmental section 457 plan, report the payments in boxes 1 and 11 of Form W-2. File 2010 taxes online late Report payments (distributions) from a governmental section 457 plan on Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. File 2010 taxes online late Example. File 2010 taxes online late Employee D retired from the XYZ company and began receiving social security benefits. File 2010 taxes online late XYZ paid D a $12,000 bonus upon retirement for sales made in a prior year, and D received $25,000 in payments from XYZ's nonqualified deferred compensation plan. File 2010 taxes online late In addition, D agreed to continue performing services for XYZ, but on a part-time basis for wages of $15,000 per year. File 2010 taxes online late D made no deferrals to the nonqualified plan this year. File 2010 taxes online late Form W-2 Completion Amount Box 1 $52,000 Box 3 27,000 Box 5 27,000 Box 11 25,000 Report the $12,000 bonus to the SSA using electronic reporting, a paper listing, or Form SSA-131. File 2010 taxes online late For more information, see Reporting Special Wage Payments , earlier. File 2010 taxes online late Reporting Payments and Deferrals in the Same Year Do not complete box 11 when payments (distributions) are made from a nonqualified plan and deferrals are reported in boxes 3 and/or 5 of Form W-2 (including current year deferrals). File 2010 taxes online late Report to the SSA on Form SSA-131 the total amount the employee earned during the tax year. File 2010 taxes online late Normally, the amount earned is the amount reported in box 1 of Form W-2 less payments from a nonqualified or section 457 plan, but including any amounts deferred under the plan during the tax year. File 2010 taxes online late See Form SSA-131 and its instructions, earlier. File 2010 taxes online late Example. File 2010 taxes online late Employee K retired this year from Company XYZ and began receiving social security benefits. File 2010 taxes online late During the year he earned wages of $50,000 and deferred $35,000 of the wages into the company's nonqualified deferred compensation plan. File 2010 taxes online late K also received $75,000 in payments from the company's nonqualified plan. File 2010 taxes online late Form W-2 Completion Amount Special Wage Payment $75,000 Wages 50,000 Minus: deferral 35,000 Total reported in Box 1 $90,000     Wages including deferral reported in  Boxes 3 and 5 $50,000     Leave Box 11 blank. File 2010 taxes online late File Form SSA-131 -0-     Form SSA-131 Completion Amount from Box 1 of Form W-2 $90,000 Minus: payments from a nonqualified plan 75,000 Plus: amounts deferred into the plan during the year 35,000 Total wages earned for purposes of Form SSA-131 (item 6) $50,000 Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) Plans It is not necessary to show amounts deferred during the year under an NQDC plan subject to section 409A. File 2010 taxes online late If you report section 409A deferrals, show the amount in box 12 of Form W-2 using code Y. File 2010 taxes online late For more information, see Notice 2008-115, 2008-52 I. File 2010 taxes online late R. File 2010 taxes online late B. File 2010 taxes online late 1367, available at www. File 2010 taxes online late irs. File 2010 taxes online late gov/irb/2008-52_IRB/ar10. File 2010 taxes online late html. File 2010 taxes online late Special reporting rules apply when an NQDC plan is not compliant with section 409A (when there has been a “plan failure”). File 2010 taxes online late Income included under section 409A from an NQDC plan is reported in box 1 and box 12 of Form W-2 using code Z. File 2010 taxes online late See Notice 2008-115. File 2010 taxes online late The following examples use small dollar amounts for illustrative purposes. File 2010 taxes online late However, the amount reported in box 3 of Form W-2 is always limited by the social security earnings wage base (for example, $110,100 for 2012). File 2010 taxes online late The term “vested” in the following examples means that the amount deferred is not subject to a substantial risk of forfeiture. File 2010 taxes online late Conversely, the term “not vested” means that the amount deferred is subject to a substantial risk of forfeiture. File 2010 taxes online late The examples assume that the NQDC plan is in compliance with section 409A, and that amounts deferred under the plan are not includible in gross income as they are deferred. File 2010 taxes online late For purposes of the examples, it is assumed that the regular pay of the employee is remuneration for employment and wages for employment tax purposes except to the extent the deferral of a portion of the regular pay results in a reduction in wages. File 2010 taxes online late Example 1: Deferral that is immediately vested (no substantial risk of forfeiture) with no distributions and no vesting of prior-year deferrals. File 2010 taxes online late For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into her employer’s NQDC plan. File 2010 taxes online late The deferral of $20 was vested upon deferral and there was an employer match of $10 under the plan, which was also vested. File 2010 taxes online late Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10. File 2010 taxes online late Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 vested deferral) $180 Box 3 ($200 Regular pay plus $10 Employer match, vested) 210 Box 5 ($200 Regular pay plus $10 Employer match, vested) 210 Box 11 -0- Example 2: Deferral with delayed vesting (substantial risk of forfeiture) of employee and employer portions (no distributions and no vesting of prior-year deferrals). File 2010 taxes online late For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. File 2010 taxes online late The deferral of $20 was not vested upon deferral, and there was an employer match of $10 under the plan, which was also not vested. File 2010 taxes online late Regular pay = $200; Deferral, not vested = $20; Employer match, not vested = $10. File 2010 taxes online late Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, not vested) $180 Box 3 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 5 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 11 -0- Example 3: Deferral that is immediately vested with prior-year deferrals and investment earnings on the prior-year deferrals that are now vesting (no distributions). File 2010 taxes online late For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. File 2010 taxes online late The deferral of $20 was vested upon deferral. File 2010 taxes online late During the year, $100 of prior-year deferrals and $15 of investment earnings on the $100 of prior-year deferrals became vested. File 2010 taxes online late Regular pay = $200; Deferral, vested = $20; Vesting of prior-year deferrals = $100; Vesting of investment earnings on $100 of prior-year deferral = $15. File 2010 taxes online late Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, vested) $180 Box 3 ($200 Regular pay plus $100 vested prior-year deferral plus $15 earnings on deferral) 315 Box 5 ($200 Regular pay plus $100 vested prior-year deferral plus $15 vested investment earnings on prior year deferral) 315 Box 11 ($100 vested prior-year deferral plus $15 earnings) 115 Example 4: No deferrals but there are distributions (no vesting of prior-year deferrals). File 2010 taxes online late For the year, the employee’s regular pay was $100, and the employee deferred no pay into the employer’s NQDC plan. File 2010 taxes online late There was no vesting of prior-year deferrals under the plan. File 2010 taxes online late During the year, there were total distributions of $50 from the plan to the employee. File 2010 taxes online late Regular pay = $100; Distribution = $50. File 2010 taxes online late Form W-2 Completion Amount Box 1 ($100 Regular pay plus $50 Distribution) $150 Box 3 ($100 Regular pay ) 100 Box 5 ($100 Regular pay) 100 Box 11 ($50 Distribution) 50 Special rule for box 11 of Form W-2 (distributions and deferral in the same year). File 2010 taxes online late   If, in the same year, there are NQDC distributions and there are deferrals that are reportable in boxes 3 and/or 5 (current or prior-year deferrals) of Form W-2, do not complete box 11. File 2010 taxes online late Instead, report on Form SSA-131 the total amount the employee earned during the year. File 2010 taxes online late * Submit the SSA-131 to the nearest SSA office or give it to the employee. File 2010 taxes online late   *Generally, the amount earned by the employee during the tax year for purposes of item 6 of Form SSA-131 is the amount reported in box 1 of Form W-2 plus current-year deferrals that are vested (employee and employer portions) less distributions. File 2010 taxes online late Do not consider prior-year deferrals that are vesting in the current year. File 2010 taxes online late If there was a plan failure, the box 1 amount in this calculation should be as if there were no plan failure. File 2010 taxes online late Example 5: Deferral that is immediately vested and there are distributions (no vesting of prior-year deferrals). File 2010 taxes online late For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. File 2010 taxes online late There was also an employer match of $10. File 2010 taxes online late The deferral and employer match were vested upon deferral. File 2010 taxes online late There was no vesting of prior-year deferrals under the plan. File 2010 taxes online late During the year, there were total distributions of $50 from the plan to the employee. File 2010 taxes online late Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10; Distribution = $50. File 2010 taxes online late Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, vested) $230 Boxes 3 and 5 ($200 Regular pay plus $10 vested employer match) 210 Leave Box 11 blank. File 2010 taxes online late File Form SSA-131 -0-     Form SSA-131 Completion Item 6 - amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $30 vested current year employee deferral and employer match) $210 Example 6: Deferral with delayed vesting and there are distributions (no vesting of prior-year deferrals). File 2010 taxes online late For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. File 2010 taxes online late The deferral was not vested upon deferral. File 2010 taxes online late There was no vesting of prior-year deferrals under the plan. File 2010 taxes online late During the year, there were total distributions of $50 from the plan to the employee. File 2010 taxes online late Regular pay = $200; Deferral, not vested = $20; Distribution = $50. File 2010 taxes online late Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay minus $20 deferral that is not vested) 180 Box 11 ($50 Distribution). File 2010 taxes online late 50 Example 7: Deferral that is immediately vested and there are distributions (also vesting of prior-year deferrals and earnings on those prior-year deferrals). File 2010 taxes online late For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. File 2010 taxes online late The deferral was vested upon deferral. File 2010 taxes online late There was vesting of $100 of prior-year deferrals and $15 of earnings on the $100 prior-year deferral under the plan. File 2010 taxes online late During the year, there were total distributions of $50 from the plan to the employee. File 2010 taxes online late Regular pay = $200; Deferral, vested = $20; Distribution = $50; Vesting of prior-year deferrals ($100) and earnings on those prior-year deferrals ($15) = $115. File 2010 taxes online late Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 vested deferral $230 Boxes 3 and 5 ($200 Regular pay Plus $115 vested prior deferral (with vested earnings on the deferral)) 315 Leave Box 11 blank. File 2010 taxes online late File Form SSA-131 -0-     Form SSA-131 Completion Item 6, amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $20 vested current year deferral) $200 Example 8: Deferral with delayed vesting and there are distributions (vesting of prior-year deferrals, including employer matches, and earnings on those deferrals). File 2010 taxes online late For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. File 2010 taxes online late The deferral was not vested upon deferral. File 2010 taxes online late There was also vesting of prior-year deferrals and employer matches and earnings on these amounts under the plan ($115). File 2010 taxes online late During the year, there were total distributions of $50 from the plan to the employee. File 2010 taxes online late Regular pay = $200; Deferral, not vested = $20; Distribution = $50; Vesting of prior-year deferrals and employer match = $100 plus earnings on that $100 of $15. File 2010 taxes online late Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay plus $115 vested prior-year deferral and prior year employer match and earning on the prior year amounts minus $20 deferral that is not vested) 295 Leave Box 11 blank. File 2010 taxes online late File Form SSA-131 -0-     Form SSA-131 Completion Item 6 ($230 Amount from Box 1 of Form W-2 minus $50 Distribution) $180 Table 2. File 2010 taxes online late Specifications for Electronic Reporting of Special Wage Payments Record Position  Field Size   Description Start End 1 3 3 Record Type—must include only the capital letters “SWP” 4 12 9 SSN—must be numeric and may not be all zeros 13 27 15 Last Name—all capitals and no punctuation; may have blanks on right only 28 38 11 First Name—all capitals and no punctuation; may have blanks on right only 39 39 1 Middle Initial—must be either a capital letter or blank 40 48 9 EIN—must be numeric and may not be all zeros 49 59 11 Payment—must be numeric; may not be all zeros; last two digits on right are assumed to be cents; no period or dollar sign 60 63 4 Payment Year—must be only a four-digit year 64 66 3 SSA Office Code—must be numeric and may be all zeros 67 67 1 Payment Type Code—must be the capital letter “T” 68 117 50 Filler  The record format is a fixed length of 117. File 2010 taxes online late  The file format is ASCII. File 2010 taxes online late  Submit only one file at a time. File 2010 taxes online late   Table 3. File 2010 taxes online late Sample—Paper Listing for Reporting Special Wage Payments to Several Employees Report of Special Wage PaymentsTax Year: Page of A. File 2010 taxes online late Employer Name: EIN:   Address: Contact Name:     Phone: ( )   . File 2010 taxes online late 1) B. File 2010 taxes online late Employee Name: (Last) (First) (MI)   C. File 2010 taxes online late SSN: D. File 2010 taxes online late SWP:$ E. File 2010 taxes online late Type: Other: 2) B. File 2010 taxes online late Employee Name: (Last) (First) (MI)   C. File 2010 taxes online late SSN: D. File 2010 taxes online late SWP:$ E. File 2010 taxes online late Type: Other: 3) B. File 2010 taxes online late Employee Name: (Last) (First) (MI)   C. File 2010 taxes online late SSN: D. File 2010 taxes online late SWP:$ E. File 2010 taxes online late Type: Other: 4) B. File 2010 taxes online late Employee Name: (Last) (First) (MI)   C. File 2010 taxes online late SSN: D. File 2010 taxes online late SWP:$ E. File 2010 taxes online late Type: Other: 5) B. File 2010 taxes online late Employee Name: (Last) (First) (MI)   C. File 2010 taxes online late SSN: D. File 2010 taxes online late SWP:$ E. File 2010 taxes online late Type: Other:     INSTRUCTIONS:   Enter tax year and page number. File 2010 taxes online late   A. File 2010 taxes online late Employer name, employer identification number (EIN), address, the name of a contact person, and a phone number where the contact person can be reached during normal business hours. File 2010 taxes online late   B. File 2010 taxes online late Employee's name. File 2010 taxes online late   C. File 2010 taxes online late Employee's social security number (SSN). File 2010 taxes online late   D. File 2010 taxes online late Total amount of special wage payments made to the employee. File 2010 taxes online late   E. File 2010 taxes online late Type of special wage payment from the following list: (1) Vacation Pay, (2) Sick Pay, (3) Severance Pay,  (4) Bonus, (5) Deferred Compensation, (6) Stock Options, and (7) Other—Please explain. File 2010 taxes online late   Do not use a paper listing for nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in block 11 of Form W-2. File 2010 taxes online late (Get Form SSA-131. File 2010 taxes online late )                 Prev  Up  Next   Home   More Online Publications