Puerto Rico Releases Forms 499R-2 and 499R-2C for Tax Year 2018

October 17, 2018 Paul Ogawa

The Puerto Rico Hacienda recently released Forms 499R-2 and 499R-2C for Tax Year 2018. These forms are the Puerto Rico equivalent of the W-2 and W-2c (respectively), and must be filed with the Hacienda and the Social Security Administration by every employer that has paid wages with income tax withheld for Puerto Rico (or to correct any submissions in the case of the 499R-2C).

There are a number of changes to each form, which are as follows:

499R-2/W-2PR:

  • “Patron: - Employer”: Language in the box has changed.
    • Formerly language instructing submission to the IRS and to the payee;
    • Now includes instructions on payments:
      • Indicate if the remuneration includes payments to the employee for (a) Services rendered by a qualified physician under Act 14-2017; (b) Domestic Services; and (c) Others.
  • “Filing Date” and “Year” boxes are formatted differently in 2018 version.
  • “Exempt Salaries” added a subsection to the box, 16B:
    • Previously only two subsections were in this box.
  • The section “Specific Instructions for the Employer” (Instrucciones Especificas para el Patrono) was added in the 2018 version of this form.
    • A majority of the specific instructions for Boxes 5 & 12 were removed, while adding specific instructions for Boxes 6, 7 and 8, 9, 10, 13, 14, 15, and 16 a/b/c.
    • The instructions added provide greater clarity on the type of payments reported in the applicable boxes.
  • The section “Specific Instructions for the Employee” (Instrucciones Especificas para el Empleado) was added in the 2018 version of this form.
    • Box instructions have been added for Boxes 5, 6, 11, 12, 13, 14, 15, and 16 a/b/c.
    • Greater specificity was added for the purposes of defining Exempt Salaries in Boxes 16, 16a, and 16b.

Form 499R-2C/W-2cPR:

  • The Box “Indicate if the renumeration includes payments to the employee for:” (Indique si la remuneracion incluye pagos al empleado por) was added in the top right corner of the form.
    • This box is meant to indicate whether any of the forms’ applicable payments are for services rendered by a qualified physician under Act 14-2017, for domestic services, or other payments.
  • Two instructional boxes (red colored print in 2017 version) were removed from the bottom of the form:
    • Instructions on filing and sending copies to the SSA & recipients were removed.
  • Under the section “How to Complete Form 499R-2C/W-2CPR?” the bold print was amended to remove “Control Number of Original Withholding Statement” from the section.
    • Reminder now reads “Make sure the box for “Electronic Filing Confirmation Number” is completed before submitting the form to the employee.”

To review the 499R-2/W-2PR, please click here. To review the 499R-2C/W-2CPR, please click here.

About the Author

Paul Ogawa is a Junior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.

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