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Draft 2024 Form W-2 Instructions Note E-Filing Threshold Change and New Box 12 Code

Checkpoint Payroll Update Staff  

· 5 minute read

Checkpoint Payroll Update Staff  

· 5 minute read

The draft 2024 IRS Form W-2Wage and Tax Statement, instructions note the threshold change for the electronic filing of several information returns and a new Box 12 code on Form W-2.

Forms W-2 must be filed with the IRS if an employer has one or more employees to whom payments were made (including noncash payments) for the employees’ services during a calendar year. Anyone required to file Form W-2 must file Form W-3 to transmit Copy A of the form to the IRS, unless electronic filing is required. For information on Forms W-2, see Payroll Guide ¶4260.

E-filing threshold.

The draft instructions for the 2024 Form W-2, which is due by January 31, 2025, note that recent regulations reduced the e-filing threshold to 10 or more returns in the aggregate. This new threshold became effective for information returns required to be filed in calendar years beginning with 2024 (tax year 2023 Forms W-2). For information regarding the electronic filing of W-2s, see Payroll Guide ¶4261.

Corrected returns.

Corrected information returns are treated separately and are not included in calculating the number of information returns to determine the e-filing threshold. However, if an employer was required to electronically file the original Form W-2, it must also e-file any Form W-2c correcting that form. Conversely, if the original Form W-2 was permitted to be filed on paper, the employer must also file any Form W-2c correcting that form. For information regarding filing corrected W-2s, see Payroll Guide ¶4262.

New Box 12 code.

The 2024 draft instructions also noted a new Box 12 code for Medicaid waiver payments excluded from gross income for federal income tax purposes under Notice 2014-7. The new code is II and Medicaid waiver payments excluded from Box 1 of Form W-2 should be reported in Box 12 with Code II. For information regarding Box 12 codes of Form W-2, see Payroll Guide ¶4259.


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