Form W-2 Gets Code for Stock Options


The IRS announced that employers will use a new code in box 12 of the 2001 form W-2. Box 12 states the amount of benefits includable as wages on which the employee’s share of taxes has been paid. Code V will identify the amount of compensation related to the exercise of employer-provided nonstatutory stock options that are included in box 1—wages, tips and other compensation; box 3—Social Security wages (up to the SS wage base); and box 5—Medicare wages and tips. Currently, the IRS does not require employers to separately identify any taxable fringe benefits that are included in box 1.

Where to find July’s flipbook issue

The Journal of Accountancy is now completely digital. 

 

 

 

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