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FINANCIAL OPERATIONS & BUSINESS TECHNOLOGY

Year-End Information

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Subject: 2015 W-2 Form Information

The figure that appears in box 1 (wages, tips, and other compensation) is your reportable Federal taxable income. Actual gross wages may not appear on the W-2 form if you have various tax shelters which reduce taxable income and/or additions to gross pay such as taxable group term life or fringe benefit income throughout the tax year. This figure has your individual tax sheltered items such as tax sheltered health insurance, retirement, and Flex Benefits already deducted from it and various taxable fringe benefits added to it.

Social Security contributions have been separated on the W-2 form for the retirement portion (Social Security Wages - box 3) and the health insurance portion (Medicare Wages - box 5). In 2015, the Social Security wage base was $118,500.00 with a maximum payout of $7,347.00, or 6.2%. The Medicare wage base had no maximum pay out in 2015 and computed as 1.45% of your covered wages. If your Medicare wages exceeded $200,000.00, there was an additional .9% tax withheld.

Mandatory tax sheltered annuities are not required to be listed on the W-2 form, but have already been subtracted from Federal taxable wages - box 1, and State taxable wages - box 16. The pension plan is checked in box 13 if you have TSA, VTSA, or KPERS retirement plans. If you have a dollar figure listed in box 12e, this is your voluntary tax shelter, Section (403b) salary reduction agreement, and it has also been subtracted from Federal and State taxable wages. Box 12g shows your contributions to the Kansas Deferred Compensation Plan.

Box 12c, Group Life Insurance, is the taxable portion of insurance cost in excess of $50,000 coverage which has been reported by your employer. This is already added to Federal, State, Social Security and Medicare wages.

Box 12dd - It is a display item only and includes the total value of your employee plus employer paid health insurance. You should not need to include any of this figure on your tax return.

Box 14 - GHI (IRS Sec. 125), is the non taxable group health insurance which you paid. You should not itemize this as a deduction on your income tax return as it has already been subtracted from Federal, State, Social Security, and Medicare taxable wages on your W-2 form and throughout the calendar year on your paychecks.

If you contributed to KPERS, KPERS buy back, and/or Kansas Police & Fireman's retirement plans, this will show up in box 14 - KPERS. This has been subtracted from federal wages in box 1. KPERS, KP & F, and KPERS buy back are not State tax sheltered so box 16 (State wages) has not been reduced.

Nue-Synergy flexible spending account program (section 125) - funds to be used for medical health care deductions are reported in box 14 - HCARE. If you set money aside for Dependent Care benefits, this is reported in box 10. Both of these deductions are already subtracted from the Federal, State, Social Security and Medicare wages on the W-2 form.

Box 14-CHRTY reports to the IRS the after-tax United Way and Community Health Charities to which you have contributed.

Please read the back of copy B and C - Employee's Record!!! It also may be of help to you in understanding your form W-2. If you were employed by more than one State agency, all earnings should appear on one W-2 form.

We have included an example of how the different taxable wage figures have been computed throughout the year. This may assist you if you attempt to reconcile your wage statements with the State W-2 form.

We trust this will answer many of the questions you may have concerning your W-2 form this year. If you need additional assistance concerning the items on your W-2 form, please contact the Payroll department at Phone(316) 978-3074.
 

2015

W-2 Form Example

2015 W-2 wages will include 27 payrolls and includes time worked from 12/07/2014, paid 01/02/2015 and runs through time worked 12/19/2015, paid 12/31/2015.

Description

W-2 box #

Amount

Actual Gross Wages Paid
 
$140,000.00
Add: Group Life Insurance over $50,000
12c
500.00
Add: Fringe Benefit Income
(Value of personal use of company car)
 
1,000.00
Less: Before Tax group health insurance
14 GHI
(150.00)
Less: Health care flexible spending - Nue-Synergy
14 HCARE
(250.00)
Less: Dependent Care benefit plan - Nue-Synergy
10
(500.00)
Less: Before Tax Parking  
(100.00)
Total: Social Security wages (Note 1)
3
$118,500.00
(Maximum)
Total: Medicare wages & tips (Note 2)
5
$140,500.00
Less: Mandatory retirement plan - TSA Contributions (Note 3)
 
(6,325.00)
Less: Voluntary tax sheltered annuity - 403b
12e
(2,000.00)
Deferred compensation - Section 457 (b)
12g
0.00
Less: KPERS, KPF, KPERS buy back contributions
14 KPERS
(1,000.00)
Total: Federal reportable wages
1
$131,175.00
Add back: KPERS, KP&F, KPERS buy back contributions
14 KPERS
1,000.00
Total: State of Kansas reportable wages
16
$132,175.00
  • Note 1: On W-2 form, box 3 -will have a maximum of $118,500.00 reportable Maximum employee paid Social Security tax (box 4)=$7,347.00.
  • Note 2: On W-2 form, box 5 - will have no maximum payout in 2015.
  • Note 3: TSA retirement is not required to be reported separately on the W-2. Obtain TSA dollar amount from final pay stub of 12-31-2015 if needed.
 

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