Puerto Rico has released Publication 17-04, which contains the specifications for Form 499R-2/W-2PR reporting. There are a number of changes from last year’s release:
- Exempt Salaries Code (Box 16), (RS State Record, positions 442-443).
- Blank field (RS State Record, positions 444-449), (can be filled with blanks or zeros).
Updated Reporting Requirements
- When reporting three exempt salaries codes in Box 16A, the following combinations are possible:
- AB, AG, or BG
- You can now report up to 4 exempt salaries codes
- Box 16 must only include one of these combination of two codes: EG or FG
- Box 16A must only include this combination of two codes: AB
- A new Exempt Salaries Code was added: G. Disaster Assistance Qualified Payment according to Administrative Determination No. 17-21.
- Exempt Salaries [(RS State Record, positions 431-441) and (RV State Total Record, positions 63-77)] paid for any of the following concepts indicated in Exempt Salaries Code (RS State Record, positions 442-443) must be informed with the applicable code(s):
- Public employees’ wages for overtime worked during emergency situations under Act 324-2004;
- Income from overtime worked by a Puerto Rico Police member under Section 1031.02(a)(34) of the Code;
- Stipends received by certain physicians during the internship period under Section 1031.02(a)(9) of the Code;
- Compensation paid to an eligible researcher or scientist for services rendered under Section 1031.02(a)(26) of the Code;
- Salary not over $40,000 per year under Section 1031.02(a)(36) of the Code (Employees between ages of 16 and 26);
- Vacation and sick leave liquidation payment to public employees under Act 211-2015; or
- Disaster Assistance Qualified Payment according to Administrative Determination No. 17-21.
- The Social Security Wage Base for Tax Year 2017 is $127,200.
- RW-Employee Wage Record Changes
- Social Security Tax Withheld field should not exceed $7,886.40 for TY2017
To view the new Publication, please click here.
About the Author
Adam Rivera is a member of the Regulatory Analysis Team's Direct Tax division at Sovos. His main areas of focus are Federal and State Tax Withholding and Affordable Care Act (ACA) Reporting. Prior to Sovos, Adam worked as a legislative aide in the Florida House of Representatives. He also has experience in securities law, focusing on securities litigation and researching emerging crowdfunding methods of raising capital. Adam is a member of both the Massachusetts and Florida Bars. He earned his B.A. from the University of Florida and his J.D. from the University of Miami.More Content by Adam Rivera