Cases: Hughes v. United States, 899 F.2d 1495 (6th Cir. 1990); National Restaurant Ass'n v. Simon, 411 F. Supp. 993 (D.D.C. 1976); Turner v. Unification Church, 473 F. Supp. 367 (D.R.I. 1978)
Forms: Form W-2; Form W-3; Form 941
Final rules 7
(a) Requirement Every person required to deduct and withhold from an employee a tax under section 3101 or 3402, or who would have been required to deduct and withhold a tax under section 3402 (determined without regard to subsection (n)) if the employee had claimed no more than one withholding exemption, or every employer engaged in a trade or business who pays remuneration for services performed by an employee, including the cash value of such remuneration paid in any medium other than cash, shall furnish to each such employee in respect of the remuneration paid by such person to such employee during the calendar year, on or before January 31 of the succeeding year, or, if his employment is terminated before the close of such calendar year, within 30 days after the date of receipt of a written request from the employee if such 30-day period ends before January 31, a written statement showing the following:
Amended 1956, 1961, 1965, 1968, 1969, 1972, 1974, 1976, 1977, 1982, 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 885(b)(1)(B), inserted at end of concluding provisions “In the case of the amounts required to be shown by paragraph (13), the Secretary may (by regulation) establish a minimum amount of deferrals below which paragraph (13) does not apply.”
- 1982 Pub. L. 97-362 Pub. L. 97–362 substituted “within 30 days after the date of receipt of a written request from the employee if such 30-day period ends before January 31” for “on the day on which the last payment of remuneration is made”.
- 1977 Pub. L. 95-216 Pub. L. 95–216 directed that the amounts required to be shown by par. (5) shall not include wages which are exempted pursuant to sections 3101(c) and 3111(c) from the taxes imposed by sections 3101 and 3111.
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(a)(5), struck out “and” at end of par. (6), necessitating no change in text, due to Pub. L. 92–603, which made identical amendment in 1972.
- 1974 Pub. L. 93-406 Pub. L. 93–406 inserted “or every employer engaged in a trade or business who pays remuneration for services performed by an employee, including the cash value of such remuneration paid in any medium other than cash,” after “exemption,”.
- 1972 Pub. L. 92-603 Pub. L. 92–603, § 293(a), struck out reference to section 3201 of this title in introductory text, par. (7), which required written statement to contain total amount of compensation with respect to which tax imposed by section 3201 was deducted, and par. (8), which required written statement to contain total amount deducted as tax under section 3201.
- 1969 Pub. L. 91-172 Pub. L. 91–172 inserted “(determined without regard to subsection (n))” after “withhold a tax under section 3402” in introductory provisions.
- 1968 Pub. L. 90-248 Pub. L. 90–248, § 502(c)(1), included reference to section 3201 in introductory provisions and added pars. (7) and (8).
- 1965 Pub. L. 89-97 Pub. L. 89–97, § 313(e)(1), inserted last sentence providing for inclusion of tips received by an employee in the course of his employment.
- 1961 Pub. L. 87-293 Pub. L. 87–293 provided a special rule with respect to the information to be contained on employees’ tax receipts in the case of remuneration paid to volunteers and volunteer leaders in the Peace Corps.
- 1956 Act Aug. 1, 1956, § 412(a), inserted provisions prescribing contents of statement in the case of compensation paid for service as a member of the uniformed services.
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(1) the name of such person,
(2) the name of the employee (and an identifying number for the employee if wages as defined in section 3121(a) have been paid),
Amended 2015
- 2015 Pub. L. 114-113 Pub. L. 114–113 substituted “an identifying number for the employee” for “his social security account number”.
(3) the total amount of wages as defined in section 3401(a),
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(4) the total amount deducted and withheld as tax under section 3402,
(5) the total amount of wages as defined in section 3121(a),
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(6) the total amount deducted and withheld as tax under section 3101,
[(7) Repealed. Pub. L. 111–226, title II, § 219(a)(3), Aug. 10, 2010, 124 Stat. 2403]
Amended 1978, 1988, 2010
- 2010 Pub. L. 111-226 Pub. L. 111–226 struck out par. (7) which read as follows: “the total amount paid to the employee under section 3507 (relating to advance payment of earned income credit),”.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 1018(u)(33), inserted a comma at end.
- 1978 Pub. L. 95-600 Pub. L. 95–600 added par. (7).
(8) the total amount of elective deferrals (within the meaning of section 402(g)(3)) and compensation deferred under section 457, including the amount of designated Roth contributions (as defined in section 402A),
Amended 1986, 2001
- 2001 Pub. L. 107-16 Pub. L. 107–16 inserted “, including the amount of designated Roth contributions (as defined in section 402A)” before comma at end.
- 1986 Pub. L. 99-514 Pub. L. 99–514 added par. (8).
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(9) the total amount incurred for dependent care assistance with respect to such employee under a dependent care assistance program described in section 129(d),
Amended 1988
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 1011B(c)(2)(B), added par. (9).
(10) in the case of an employee who is a member of the Armed Forces of the United States, such employee’s earned income as determined for purposes of section 32 (relating to earned income credit),
Amended 1994
- 1994 Pub. L. 103-465 Pub. L. 103–465 added par. (10).
(11) the amount contributed to any Archer MSA (as defined in section 220(d)) of such employee or such employee’s spouse,
Amended 1996, 2000
- 2000 Pub. L. 106-554 Pub. L. 106–554 substituted “Archer MSA” for “medical savings account”.
- 1996 Pub. L. 104-191 Pub. L. 104–191 added par. (11).
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(12) the amount contributed to any health savings account (as defined in section 223(d)) of such employee or such employee’s spouse,
Amended 2003
- 2003 Pub. L. 108-173 Pub. L. 108–173 added par. (12).
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(13) the total amount of deferrals for the year under a nonqualified deferred compensation plan (within the meaning of section 409A(d)),
Amended 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 885(b)(1)(A), added par. (13).
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(14) the aggregate cost (determined under rules similar to the rules of section 4980B(f)(4)) of applicable employer-sponsored coverage (as defined in subsection (g)), except that this paragraph shall not apply to—
Amended 2010, 2019
- 2019 Pub. L. 116-94 Pub. L. 116–94, § 503(b)(1)(A), substituted “subsection (g)” for “section 4980I(d)(1)” in introductory provisions.
- 2010 Pub. L. 111-148 Pub. L. 111–148 added par. (14).
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(A) coverage to which paragraphs (11) and (12) apply, or
(B) the amount of any salary reduction contributions to a flexible spending arrangement (within the meaning of section 125),
(15) the total amount of permitted benefit (as defined in section 9831(d)(3)(C)) for the year under a qualified small employer health reimbursement arrangement (as defined in section 9831(d)(2)) with respect to the employee,
Amended 2016
- 2016 Pub. L. 114-255 Pub. L. 114–255 added par. (15).
(16) the amount includible in gross income under subparagraph (A) of section 83(i)(1) with respect to an event described in subparagraph (B) of such section which occurs in such calendar year,
Amended 2017
- 2017 Pub. L. 115-97 Pub. L. 115–97 added pars. (16) and (17).
(17) the aggregate amount of income which is being deferred pursuant to elections under section 83(i), determined as of the close of the calendar year,
Amended 2017
- 2017 Pub. L. 115-97 Pub. L. 115–97 added pars. (16) and (17).
(18) the total amount of cash tips reported by the employee under section 6053(a) and the occupation described in section 224(d)(1) such person, and
Amended 2025
- 2025 Pub. L. 119-21 Pub. L. 119–21, § 70201(f)(4), added par. (18).
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(19) the total amount of qualified overtime compensation (as defined in section 225(c)).
Amended 2025
- 2025 Pub. L. 119-21 Pub. L. 119–21, § 70202(c)(1), added par. (19).
In the case of compensation paid for service as a member of a uniformed service, the statement shall show, in lieu of the amount required to be shown by paragraph (5), the total amount of wages as defined in section 3121(a), computed in accordance with such section and section 3121(i)(2). In the case of compensation paid for service as a volunteer or volunteer leader within the meaning of the Peace Corps Act, the statement shall show, in lieu of the amount required to be shown by paragraph (5), the total amount of wages as defined in section 3121(a), computed in accordance with such section and section 3121(i)(3). In the case of tips received by an employee in the course of his employment, the amounts required to be shown by paragraphs (3) and (5) shall include only such tips as are included in statements furnished to the employer pursuant to section 6053(a). The amounts required to be shown by paragraph (5) shall not include wages which are exempted pursuant to sections 3101(c) and 3111(c) from the taxes imposed by sections 3101 and 3111. In the case of the amounts required to be shown by paragraph (13), the Secretary may (by regulation) establish a minimum amount of deferrals below which paragraph (13) does not apply.
(b) Special rule as to compensation of members of Armed Forces In the case of compensation paid for service as a member of the Armed Forces, the statement required by subsection (a) shall be furnished if any tax was withheld during the calendar year under section 3402, or if any of the compensation paid during such year is includible in gross income under chapter 1, or if during the calendar year any amount was required to be withheld as tax under section 3101. In lieu of the amount required to be shown by paragraph (3) of subsection (a), such statement shall show as wages paid during the calendar year the amount of such compensation paid during the calendar year which is not excluded from gross income under chapter 1 (whether or not such compensation constituted wages as defined in section 3401(a)).
Amended 1956
- 1956 Act Aug. 1, 1956, § 412(b), required the furnishing of a statement if during the calendar year any amount was required to be withheld as tax under section 3101 of this title.
(c) Additional requirements The statements required to be furnished pursuant to this section in respect of any remuneration shall be furnished at such other times, shall contain such other information, and shall be in such form as the Secretary may by regulations prescribe. The statements required under this section shall also show the proportion of the total amount withheld as tax under section 3101 which is for financing the cost of hospital insurance benefits under part A of title XVIII of the Social Security Act.
Amended 1965, 1968, 1972, 1976
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing.
- 1972 Pub. L. 92-603 Pub. L. 92–603, § 293(b), struck out reference to section 3201 of this title.
- 1968 Pub. L. 90-248 Pub. L. 90–248, § 502(c)(2), included reference to section 3201 in second sentence.
- 1965 Pub. L. 89-97 Pub. L. 89–97, § 107, required the statements to show the proportion of the total amount withheld as tax under section 3101 which is for financing the cost of hospital insurance benefits under part A of title XVIII of the Social Security Act.
(d) Statements to constitute information returns A duplicate of any statement made pursuant to this section and in accordance with regulations prescribed by the Secretary shall, when required by such regulations, be filed with the Secretary.
Amended 1976
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing.
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(e) Railroad employees
Amended 1972
- 1972 Pub. L. 92-603 Pub. L. 92–603, § 293(c), added subsec. (e).
(1) Additional requirement Every person required to deduct and withhold tax under section 3201 from an employee shall include on or with the statement required to be furnished such employee under subsection (a) a notice concerning the provisions of this title with respect to the allowance of a credit or refund of the tax on wages imposed by section 3101(b) and the tax on compensation imposed by section 3201 or 3211 which is treated as a tax on wages imposed by section 3101(b).
(2) Information to be supplied to employees Each person required to deduct and withhold tax under section 3201 during any year from an employee who has also received wages during such year subject to the tax imposed by section 3101(b) shall, upon request of such employee, furnish to him a written statement showing—
(A) the total amount of compensation with respect to which the tax imposed by section 3201 was deducted,
(B) the total amount deducted as tax under section 3201, and
(C) the portion of the total amount deducted as tax under section 3201 which is for financing the cost of hospital insurance under part A of title XVIII of the Social Security Act.
(f) Statements required in case of sick pay paid by third parties
Amended 1980
- 1980 Pub. L. 96-601 Pub. L. 96–601 added subsec. (f).
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(1) Statements required from payor
(A) In general If, during any calendar year, any person makes a payment of third-party sick pay to an employee, such person shall, on or before January 15 of the succeeding year, furnish a written statement to the employer in respect of whom such payment was made showing—
Amended 1982, 1983
- 1983 Pub. L. 98-67 Pub. L. 98–67 repealed amendments made by Pub. L. 97–248. See 1982 Amendment note below.
- 1982 Pub. L. 97-248 Pub. L. 97–248 provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, par. (1)(A) is amended by inserting “subchapter A of” before “chapter 24”. Section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted.
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(i) the name and, if there is withholding under section 3402(o), the social security number of such employee,
(ii) the total amount of the third-party sick pay paid to such employee during the calendar year, and
(iii) the total amount (if any) deducted and withheld from such sick pay under section 3402.
For purposes of the preceding sentence, the term “third-party sick pay” means any sick pay (as defined in section 3402(o)(2)(C)) which does not constitute wages for purposes of chapter 24 (determined without regard to section 3402(o)(1)).
(B) Special rules
(i) Statements are in lieu of other reporting requirements The reporting requirements of subparagraph (A) with respect to any payments shall, with respect to such payments, be in lieu of the requirements of subsection (a) and of section 6041.
(ii) Penalties made applicable For purposes of sections 6674 and 7204, the statements required to be furnished by subparagraph (A) shall be treated as statements required under this section to be furnished to employees.
(2) Information required to be furnished by employer Every employer who receives a statement under paragraph (1)(A) with respect to sick pay paid to any employee during any calendar year shall, on or before January 31 of the succeeding year, furnish a written statement to such employee showing—
(A) the information shown on the statement furnished under paragraph (1)(A), and
(B) if any portion of the sick pay is excludable from gross income under section 104(a)(3), the portion which is not so excludable and the portion which is so excludable.
To the extent practicable, the information required under the preceding sentence shall be furnished on or with the statement (if any) required under subsection (a).
(g) Applicable employer-sponsored coverage For purposes of subsection (a)(14)—
Amended 2019
- 2019 Pub. L. 116-94 Pub. L. 116–94, § 503(b)(1)(B), added subsec. (g).
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(1) In general The term “applicable employer-sponsored coverage” means, with respect to any employee, coverage under any group health plan made available to the employee by an employer which is excludable from the employee’s gross income under section 106, or would be so excludable if it were employer-provided coverage (within the meaning of such section 106).
(2) Exceptions The term “applicable employer-sponsored coverage” shall not include—
(A) any coverage (whether through insurance or otherwise) described in section 9832(c)(1) (other than subparagraph (G) thereof) or for long-term care,
(B) any coverage under a separate policy, certificate, or contract of insurance which provides benefits substantially all of which are for treatment of the mouth (including any organ or structure within the mouth) or for treatment of the eye, or
(C) any coverage described in section 9832(c)(3) the payment for which is not excludable from gross income and for which a deduction under section 162(l) is not allowable.
(3) Coverage includes employee paid portion Coverage shall be treated as applicable employer-sponsored coverage without regard to whether the employer or employee pays for the coverage.
(4) Governmental plans included Applicable employer-sponsored coverage shall include coverage under any group health plan established and maintained primarily for its civilian employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any such government.