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American Payroll Association (APA) Basic Guide to Payroll, 2013 Edition
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CCH® PAYROLL — 04/27/10

IRS issues 2010 Forms W-2 and W-3

The IRS has issued Forms W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements together with Instructions for 2010. A few items to note include:

HIRE wages and tips paid to qualified employees

The Hiring Incentives to Restore Employment (HIRE) Act exempts employers from the employer’s share of social security tax (referred to as the payroll tax exemption) on wages paid to qualified employees from March 19, 2010, through December 31, 2010. For employers to report the amount of wages and tips covered by the payroll tax exemption, the IRS added a new code for box 12, code CC, for HIRE exempt wages and tips. The total of code CC is reported in new box 12b on Form W-3. The total of deferred compensation amounts, previously reported in box 12, is now reported in new box 12a on Form W-3.

Military differential pay

Employers paying their employees while they are on Active duty in the US uniformed services should treat these payments as wages subject to income tax withholding. The forms are also posted on the IRS Internet site at http://www.irs.ustreas.gov/formspubs/index.html. (2010 Instructions for Forms W-2 and W-3.)

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