What are the changes being made to Form W-2 for the 2023 tax year?
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Last modified 11/3/2023 5:47:37 AM EST |
Added by TaxBandits Team
The IRS has updated the Form W-2 for the 2023 tax year. Employers should be aware of the following updates.
Updates to the employee section:
The SSA has increased the social security wage limit from $147,000 to $160,200 for the tax year 2023. Therefore, total of Box 3 (Social Security wages) and Box 7 (Social Security Tips) should not exceed $160,200.
Box 4:
Since the Social Security wages limit has been increased to $160,200, the Social Security tax withheld should not exceed $9,932.40 ($160,200 × 6.2%).
Penalty Changes:
The IRS has increased penalties for failure to file Forms W-2 to account for inflation. For more detailed information information about W2 penalty rates, click here.