How to read your W-2

This amount includes total wages and other compensation paid during the calendar year. This includes taxable fringe benefits (e.g., the value of group-term life insurance in excess of $50,000, tuition benefits greater than $5,250.00, non-cash rewards, gifts and taxable moving reimbursements). Pretax deductions/ premiums, for insurance plans (health, dental and flexible spending accounts for health or dependent care benefits) and contributions to the retirement plan will reduce your total wages. This box reports your federal taxable wages.

Note: Wages exempt from tax under a Tax Treaty will not be included in Box 1 but will be reported in Box 2 of Form 1042-S. 

This is the amount of federal income tax withheld from your wages reported in Box 1. Your W-4 was used to determine the tax withholding rate. Your filing status is available on the employee portal and on your paystub (aka, your pay advice).

This amount includes total wages and other compensation plus fringe benefits, minus pre-tax deductions for health insurance and any flexible spending accounts up to the annual maximum Social Security wage base. This box can differ from Federal wages (Box 1) as retirement plan contributions do not reduce the Social Security wages reported in Box 3.

The following groups are exceptions and are not subject to Social Security:

• PERA employees
• Full-time undergraduate student employees (enrolled in at least six credit hours)
• Full-time graduate student employees (enrolled in at least three credit hours)
• Nonresident alien employees

This amount represents 6.2 percent of the Social Security wages (Box 3) withheld from Social Security wages during the year.

The wages subject to Medicare tax are the same as those subject to Social Security tax; however, there is no wage limit for the Medicare Tax.

This amount represents 1.45 percent of the total Medicare wages (Box 5) during the year. However, employees who earn more than $200,000 (single) or $250,000 (married filing jointly) are also subject to an additional 0.9 percent Medicare tax.

This amount is the total amount paid into your dependent care flexible spending account for the year.

Certain payments are reported in Box 12 along with alpha codes. The Notice to Employee on the back of your Form W-2 shows a complete listing of the codes used. The following codes are among the most common.

• 12 C - Taxable Cost of GTL (Group Term Life)
  The calculated value of group-term life insurance exceeding $50,000 that has been added into Box 1 as "other compensation"
   
• 12 E - Section 403(b) Salary Reductions
  Your total elective deferrals to your CU 403(b) Voluntary Retirement Plan
   
• 12 G - Section 457(b) Contributions
  Any amount you contributed to the 457 Plan
   
• 12 P - Excludable Moving Expense Reimbursements
  Non-taxable moving expenses for which you were reimbursed directly (not included in taxable wages in Box 1)
   
• 12 DD – Cost of Employer-Sponsored Health Coverage
  This is the cost of your employer-sponsored health coverage. The amount reported is not taxable. This figure includes both the employee- and employer-paid health insurance premiums, and is for informational purposes only.
  
  Note: Form W-2 only allows space to report four "Box 12" codes. Employees with more than four codes will receive two W-2 forms. The second form will only include additional Box 12 codes.

This box is checked when an employee is an active retirement plan participant (CU 401(a) Retirement Plan or the Public Employees' Retirement Association (PERA) Retirement Plan) for any part of the year. When checked, special limits may apply to the amount of IRA contributions that an employee may deduct.

This box is used to report miscellaneous information, such as:

• Vehicle - The taxable value of the personal use of company-provided vehicles
• PreTax - The total amount of pretax deductions from your cafeteria plan elections
• 14M - Moving expenses - Acard
• 14MT - Moving expense - Taxable
• 14N - Be Colorado's Brussels and Mussels program
• 14Q - Business Expense – Taxable
• 14V - Imputed Cash Award
• 14Y - Be Colorado Move. Payment
• 14Z - Weight Watchers Imputed Income

This amount equals Box 1 and should be used with your state income tax return.

This is the amount of state income tax withheld from your wages, reported in Box 16.

This amount is your local taxable wages.

This is the amount of local income tax withheld from your wages, reported in Box 19. You may receive multiple W-2 forms if you lived in more than one location within the tax year (e.g., Denver and Aurora).