There are situations that will result in having more than one W-2. The most common is you changed your state/county/city tax withholding during the year. In this case you will see different information in boxes 15-20 on the W-2. You will need to report both W-2s when you file your taxes.
If that is not the case, contact the HR Support Center (insert solution article on call center contact information) for guidance.
- The most common reason for this to occur is you received an award, or awards, with a net total of $1,000 or more during the calendar year.
- Awards are “grossed up.” What this means is that at the end of the year if an associate meets the parameter above, the Exchange will determine the appropriate taxes, at a 25% rate, and pay those taxes for the employee.
- Since award payments of $1,000 or greater are considered taxable income, the amount of the award AND the computed amount of the taxes paid must be added to the associate’s income (displayed on the W-2).
- As a result, the amount of income and taxes paid will be higher on the W-2.
- FICA (Social Security) is computed at 6.2% of the taxable gross wages and MEDICARE is computed at 1.45%.
- For associates overseas, IRS Publication 516 has information regarding what is considered taxable, https://www.irs.gov/pub/irs-pdf/p516.pdf.