W-2 Reporting on Wraparound Plans

[DTH]

Form W-2 does not make reference to the reporting of nonqualified wraparound plans. If an individual makes deferrals to the nonqualified plan in 2002, those deferrals will be reflected in the 2002 W-2.

Box 1 Wages -The deferrals will not be included

Box 3 SS Wages - Are the deferrals included or not included???

Box 5 Medicare - Deferrals included

Box 12a - No Code so not included

If in Box 3 the deferrals are included and FICA taxes paid, the ER really doesn't need to reissue a W-2.

If in Box 3 the deferrals are not included, you would need to reissue the 2002 W-2 since 401(k) deferrals are subject to SS. The SS taxes will be paid in 2003 and will be reflected in the 2003 W-2???

In 2003 when the ADP test is run, the ER will need to reissue the 2002 W-2 in oder to correctly reflect the deferrals that were moved from the nonqualified plan to the 401(k) plan.

Box 1 Wages - Not included

Box 3 - Included

Box 5 - Included

Box 12a - Code D and $ amount

Any clear guidance on how to fill out the form will be very appreciative.