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Do your W-2 forms need to be updated?

In preparation for year-end and the generation of employee Wage and Tax Statements, form W-2, by the State Controller’s Office, employees are requested to submit address changes to District Administrative Offices or Human Resource Services.

Employees who have moved or made address changes and who have not yet submitted that information should complete a new W-4 and submit it to District Administration Offices or Human Resources by Dec. 23, to guarantee system change.

All wage and tax statements, form W-2, are mailed to the most current system address. If the address is not correct, the W-2 is returned to Division of Statewide Payroll by the U.S. Post Office. It is not forwarded.

If the employee does not receive his or her W-2, he or she can request an informational copy or a duplicate W-2 form that can be used in the filing of income taxes. In the event he or she requests a “duplicate W-2 form,” the request must be accompanied with a $5 fee. All requests for duplicate W-2 forms or informational copies must be made in writing and signed by the employee.

Currently, the State Controller’s Office is working on a project to create an electronic copy of the W-2. With the new electronic version of the W-2, employees will have the ability to print their W-2 directly from the Internet. SCO plans to have this ready in January for the 2005 W-2s. More information will be sent out as the project gets closer to completion.
Keep in mind that the state is again allowing W-2 information to be downloaded into participating tax preparation packages for 2005. The calendar year 2005 W-2 download file again be will available on the Internet in late January.

Earned Income Credit
Employees eligible for earned income credit must complete and sign both a 2006 W-5 form and a new EIS-EIC form for the upcoming year. The State Controller’s Office will be unable to accept 2005 W-5 forms that have been altered to read 2006.

Social Security Wage Base Changing
The Social Security wage base (SSDI) for calendar year 2006 will increase to $94,200 with the tax rate remaining at the current 6.2 percent. There continues to be no wage base limitation on Medicare wages (SSHI), and the tax rate remains at 1.45 percent. The 2006 employee contribution limit for the 401(k), 403(b) and 457 plans has increased to $15,000, and the catch-up contribution limit for participants aged 50 or older has increased to $5,000.

Withholding and/or Beneficiary Designation Changes
The end of the year also is a good time to review your state and federal tax withholdings and beneficiary designations for life insurance and/or PERSI. If you need to make changes or review your current designations, please see your district personnel technician or Carla Anderson in Human Resource Services.

Published 11-18-05