IRS Releases 2018 Instructions for Forms W-2 and W-3

September 4, 2018 Gerry Nelligan

The IRS has released the 2018 Instructions for Forms W-2 and W-3. Form W-2 is used by employers to report employee wage information to the IRS.

There are a number of changes from the previous revision:

  • Two new codes (Codes GG and HH)
    • Code GG- Income from qualified equity grants under section 83
    • Code HH- Aggregate deferrals under section 83elections as of the close of the calendar year
  • Leave-based donation programs to aid victims of Hurricanes and Tropical Storms Harvey, Irma, and Maria, and the 2017 California Wildfires
    • Employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2019, to qualified tax-exempt organizations providing relief for the victims of Hurricane Harvey and Tropical Storm Harvey, Hurricane Irma and Tropical Storm Irma, Hurricane Maria and Tropical Storm Maria, and the California Wildfires that began on October 8, 2017
  • Suspension of exclusion for qualified moving expense reimbursements
  • The Tax Cuts and Jobs Act also temporarily makes the Sinai Peninsula of Egypt a qualified hazardous duty area. Treat this hazardous duty area as a combat zone for the exclusion from income of certain combat pay under section 112 and exclusion from wages under section 3401(a)(1)
  • New qualified equity grants under section 83
  • New section for “Qualified small employer health reimbursement arrangement”
  • Penalties have increased due to inflation
  • FSA limit has increased

To view the Instructions for Forms W-2 and W-3, please click here.

About the Author

Gerry  Nelligan

Gerry Nelligan is a Regulatory Analysis Supervisor at Sovos, leading a team of counsels covering information reporting, including 10-Series IRS reporting, Affordable Care Act (ACA) reporting and Automatic Exchange of Information (AEOI). Gerry received his J.D. from Suffolk University Law School and his B.A. from Providence College. He is a licensed attorney in the state of Massachusetts.

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