The National Directory of Certified Public Accountants

Ask A CPA - Form W-2

W-2 - Box 13 Checkbox'S

If the recipient is a statutory employee, wage income and expenses are reportable on Schedule C. Earnings are not subject to income tax withholding but are subject to SS and Medicare taxes. Covered by a retirement plan box being X'd means the recipient is subject to the phase-out rules for IRA deductions. Income reportable as 3rd party sick pay has this checkbox X'd.

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