FICA (Social Security) and Medicare
How are FICA and Medicare tax calculated?
FICA is 4.2 percent of taxable gross.
Medicare 1.45 percent of taxable gross.
Example: Bi-weekly earnings for an employee = $1,500
FICA deduction: $1,500 x 4.2% = $63
Medicare deduction: $1,500 x 1.45% = $21.75
What is the FICA cap for 2011?
2011 — $106,800 (no change)
2010 — $106,800
Please refer to Publication 15 available at the IRS website if you have additional questions.
An employee who has worked for one company, the state of New York (NYS) or the City University of New York (CUNY) during the year will receive only one Form W-2. Employees who worked in more than one company (for example, both CUNY and NYS) will receive a Form W-2 for each company.
The information that will appear on the Form W-2 Statement is described below:
Box 1 — Wages, Tips and Other Compensation
The amount in this box is the federal taxable gross wages.
Box 2 — Federal Income Tax Withheld
The amount in this box is the federal income tax withheld.
Box 3 — Social Security Wages
The amount in this box is the wages subject to Social Security taxes, not to exceed $106,800.
Box 4 — Social Security Tax Withheld
The amount in this box is the Social Security tax withheld, not to exceed $6,621.60.
Box 5 — Medicare Wages
The amount in this box is the wages subject to Medicare withholding.
Box 6 — Medicare Tax Withheld
The amount in this box is the Medicare tax withheld.
Box 9 — Advance EIC Payments
The amount in this box is the total Earned Income Credit payments.
Box 10 — Dependent Care Benefits
The amount in this box is the total dependent care benefit.
Box 12 — Codes
Elected deferrals, certain deductions and/or reimbursed amounts. These amounts are not included in Box 1.
- CC — HIRE exempt wages and tips (This is an employer credit only for City and State Universities of New York who hired qualified employees.)
- E — Section 403(b) contributions
- G — Section 457(b) deferred compensation plan
- P — Excludable moving expense reimbursements (not included in boxes 3 and 5)
Box 13 — Checkboxes
A check mark is placed in the Retirement Plan box and/or the Third-party Sick Pay box if you are eligible to participate in a retirement plan and/or have received Third-party Sick Pay benefits.
Box 14 — Other
Amounts to be reported:
- TPS — The amount of sick pay paid by a third-party provider.
- CPA — The amount of Chaplains Parsonage Allowance.
- 414(h) — All nontaxable retirement contributions made to New York State, City Retirement Systems or TIAA/CREF. This amount must be reported for state and local taxes. If there is a minus sign (-) with this amount, state and local taxes have already been paid.
- UTA — Uniform/Tool Allowance.
- EXP — Taxable Expense. This code is used for payments of “lieu of expenses,” non-overnight meal allowances, excess per diem reimbursements or personal car mileage.
- FRB — Taxable Fringe Benefit. This code is used for the taxable value of personal use of an employer-provided vehicle and/or Certification and Licensure Exam Fee Reimbursement.
- EDA — Educational Assistance Payments.
- TXP — Taxable transportation fringe benefits (parking) in excess of IRS excludable amounts.
- PPL — Prepaid Legal Expense.
- IMP — Imputed Income. The value of the employer's contributions for employees with Domestic Partner Health Insurance.
- WCX — Workers’ Compensation excluded amount. This is the amount awarded by the NYS Workers' Compensation Board, which is excluded from the current-year gross pay for a work-related injury.
- IRC125 — For City University of New York (CUNY) employees only. This amount includes dependent care, flexible spending account and nontaxable health insurance and is excludable for federal income tax, FICA and Medicare taxes. It is not included in boxes 1, 3 and 5. This amount must be reported for state and local taxes.
- MNA — The amount of military pay exempt from New York State income tax as provided by New York Tax Law. Note: This is applicable to members of the New York State organized militia only and paid in Agencies 01071 and/or 01072.
Box 15 — State
A two-letter code from the list below indicating which state income taxes were withheld:
- CA — California
- DC — District of Columbia
- FL — Florida
- GA — Georgia
- IL — Illinois
- MA — Massachusetts
- MD — Maryland
- NJ — New Jersey
- NY — New York
- PA — Pennsylvania
- PR — Puerto Rico
- SC — South Carolina
- TX — Texas
- VA — Virginia
Box 16 — State Wages
The state wages reported are the same as the amount of federal wages required to be reported in Box 1 — Wages, Tips and Other Compensation.
Box 17 — State Income Tax
The amount in this box is the state tax withheld.
Box 18 — Local Wages
The amount in this box is the local wages.
Box 19 — Local Income Tax
The amount in this box is the local taxes withheld.
Box 20 — Name of Locality
The name of the locality if local taxes were withheld and the corresponding code.
- New York City — P0001
- Yonkers — 84000
- Anne Arundel — 003
- Philadelphia City — 1510012M
- Wilkes-Barre — 851521
Employer's Name and Address
This information will be printed on all copies of the Form W-2. The box will include the Federal Employer Identification Number for the following companies:
- New York State — 14-6013200
- City University — 13-3893536
- New York State Environmental Facilities Corporation — 14-1499804
- New York State Foundation for Science, Technology and Innovation — 86-1167163
- SUNY Construction Fund — 14-6019701
- Industrial Exhibit Authority — 16-1332929
Additional Employee Information
Employees should retain their last paycheck stub/direct deposit advice statement for 2010 for a record of nontaxable health insurance paid in 2010. Employees participating in the New York State Ride Transportation Benefit Program should retain their last paycheck stub/direct deposit advice statement for 2010 for a record of participation in the program and verification of the amount paid. These amounts are excluded from boxes 1, 3 and 5 to calculate the taxable gross wages for federal income tax, Social Security and Medicare taxes. However, the amounts for the health insurance and the NYS-Ride Transportation Program do not appear on the Form W-2. CUNY employees with deductions for the pre-tax and after-tax transit benefit should retain their last paycheck stub/direct deposit advice statement for 2010 for a record of participation and the amount paid in the CUNY Transit Benefit Transportation Spending Account Program.
The pre-tax transit benefit deduction is excluded from boxes 1, 3 and 5 to calculate the taxable gross wages for federal income tax, Social Security and Medicare taxes. However, the pre-tax and after-tax transit benefit amounts do not appear on the Form W-2.
Deductions for dependent care, health care flexible spending account and nontaxable health insurance for CUNY employees are reported as IRC 125 in Box 14.