If your company is set up with Qualified Pension and if you have some employees without year-to-date wages and have the Qualified Pension indicator marked as “Yes”; then those employees will receive a blank Form W-2, with the Retirement plan box checked.
Box 13 on Form W-2
The Retirement plan indicator populates Box 13 on Form W-2 and shows whether an employee is an active participant in your company's plan.
Please keep in mind that:
· An “X” in Box 13 indicates an employee is an active participant and is automatically displayed for anyone who has deferred compensation within the current year.
· Your employees’ Qualified Pension status is displayed on the Personnel section of the Master Control and should be reviewed for accuracy.
Note: Any employee coded with Qualified Pension for 2021, even without wages, will receive a Form W-2 with an “X” in the Retirement plan box, and the information will be reported to the IRS.
For additional retirement plan information, please visit the IRS website at https://www.irs.gov/retirement-plans/common-errors-on-form-w2-codes-for-retirement-plans.
Incorrect Forms W-2
If an employee’s Form W-2 is not correct because it has the Retirement plan box marked, an amendment may be required. This may affect your employees if they have already filed their income tax returns. Please carefully audit your Qualified Pension coding to ensure the information in Box 13 on Forms W-2 is accurate.
Submitting Qualified Pension Corrections:
If you have employees without earnings and do not want them to receive a blank Form W-2 with only the retirement plan box checked, please contact your ADP Service Representative as soon as possible.
For more detailed information on any of the topics above, you can select the individual titles to go to a more detailed communication. Or you can access various resources in My ADP Resource by going to FormSource > Year End Processing and viewing the following PDFs:
· Quarter & Year End Library
· W-2 Accuracy: Viewing Forms W-2 or Preview Forms W-2 in iReports
· W-2 Boxes Explained
· And much more!
If you have any questions, we’re here to help you.