What are the changes being made to Form W-2 for the 2024 tax year?

Last modified 11/3/2023 5:46:16 AM EST

The IRS has made several updates to the Form W-2 for the 2024 tax year. Employers should be aware of the following updates.

• IRS Adds BOX 12 Code II for Medicaid Waiver Payments
  For the 2024 Tax Year, the IRS Adds Box 12 Code II for Income from the Exclusion of Medicaid Waiver Payments (IEMWP-II).

• Updates to Social Security wage limit
  The SSA has increased the social security wage limit from $160,200 to $168,600 for the tax year 2024. Therefore, you must ensure the following when completing W-2.

  • The total of Box 3 (Social Security wages) and Box 7 (Social Security Tips) should not exceed $168,600.

  • Box 4, the Social Security tax withheld, should not exceed $10,453.20 ($168,600 × 6.2%).

• Penalty Change
  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.