Employees during 2014 will receive an IRS Form W-2 by the end of January 2015. In addition to showing gross Federal taxable wages, income subject to Social Security, income subject to Medicare, and income subject to state and local taxes where applicable, the dollar amount of payroll tax withheld for each income category is disclosed.

There are more than 20 boxes on this form provide information regarding Deferred Compensation, Other Compensation, social and medicare taxes on tips, group term life insurance, non-taxable salary deferrals, non-taxable sick pay, non-taxable reimbursements for employee moving expenses, non-taxable combat pay, employer contributions to health insurance costs, and so on.

The information reported on the Form W-2 is shared by the Internal Revenue Service, the Social Security Administration, and various state and local governments, where applicable.

For an employer accurate preparation and issuance of Forms W-2 may not be easy process. Much of the non salaried data contained in the detail boxes will be reported on the employee’s Federal Income Tax return, Form 1040.