FOR USE IN COMMUNICATIONS ASSIGNMENTS ONLY
|c Employer's Name
|1 Wages, tips, other
|2 Federal Income Tax Withheld
|3 Social Security
|4 Social Security Tax Withheld
|b Student's social security
|18 State Income Tax Withheld
|19 State Disability
|d Student's Name
|This is a simplified version of FORM W2 OMB No. 1545-0008 BPR125A 10/93|
SIMPLIFIED FORM W2 1998Wage and Tax Statement
Would be filed with the student's Federal Tax Return
Department of the Treasury - IRS
This information would be furnished to the IRS and appropriate State officials
BOX CONTENT EXPLANATIONS
This is the total amount of money you "earned" as a student in the class in 1998.
We would have taken this amount from what you earned, and paid it to the federal government instead of you. The law requires that this be done to make sure that you don't spend what you'll owe in taxes at the end of the year. This process is called WITHHOLDING.
This is the amount of your overall wages subject to Social Security taxes. The maximum is currently $68,400 per year.
We would have "withheld" this amount from your paycheck and paid it to the federal government to go into the SOCIAL SECURITY TRUST FUND. After paying into this fund for several years, you (and/or your family) are entitled to collect retirement and/or disability benefits when you become eligible. In addition, because you'd also pay withholding to the MEDICARE trust fund (not shown on the simplified W2 form above), you will become eligible to collect MEDICARE benefits should you ever need them. As an employer, we would have to send an amount equal to your withholding for both trust funds as an additional contribution to your account.
This amount is withheld from your pay and sent to the state government to go toward any state income tax you'll owe at the end of the year.
This amount is withheld from your pay and sent to the state government's DISABILITY INSURANCE FUND, often called WORKER'S COMPENSATION. Workers injured on the job, who are paying into this fund, can draw from it to help cover their expenses while they are unable to work.