SEC. 2. NATURE OF CHANGES

.01 The text and exhibits were updated for tax year 1997.

.02 Only 7 inch width Forms W–2 and W–3 are acceptable for SSA processing. The exhibits for the printing of 7.5 and 8 inch width Forms W–2 and W–3 have been removed because 7.5 and 8 inch forms cannot be put through SSA scanning equipment. Keying from the paper documents will be necessary for any 7.5 and 8 inch forms submitted to SSA.

.03 Information has been added that will require businesses terminat- ing operations to give their employees Form W–2 when the employer files the final Form 941, Employer’s Quar- terly Federal Tax Return. This also changes the filing date Form W–2 must be sent to SSA. See Part A, Section 3.06 below for new informa- tion.

.04 The Void Box on Form W–2, Copy A, was enlarged and set with bold rules. This was requested by SSA to bring more attention to voided forms so void totals are not included in subtotals and total on Forms W–2 and W–3.

.05 Form W–2, Box 13, added codes R, S, and T for medical savings, SIMPLE retirement account, and adoption assistance payment. More details about these new codes can be found beginning in Part B, Sec. 1.04.16 below. .06 New paragraph was added to the paperwork reduction act notice at the direction of OMB.

.07 Added information stating Household Employers with only one household employee must file Form W–3 with Form W–2. This is based on an agreement between SSA and IRS. See Part B, Section 1.10 below for new requirement.

.08 Form W–3, boxes 13 and 14, and their related instructions have been deleted. SSA says they no longer need this information. See Part A, Section 4.04.

.09 Changed the instructions for substitute forms W–2 to require that employers may provide multiple occurrences of box 13 but the boxes should use the same codes as those assigned by IRS. See Part B, Section 2.04.14 below for new information.

.10 Provided examples of the various types of information that should go in box 14, Form W–2. See Part B, Section 2.04.19 for details. .11 The section titled ‘‘Where to File’’ in the general instructions on the employer’s copy of the official Form W–3 must be printed in its entirety on all substitute Forms W–3.

.12 The tax year (1997) must be printed in non-reflective black ink on all copies of Form W–2 and Form W–3 using 24 pt OCR–A font. The forms identification numbers, e.g., 22222 or 33333, at the top of the forms must be printed in non-reflective black ink. It is imperative that SSA’s scanning equipment be able to recognize the form number so that, for example, a Form W–3 is recognized and is not scanned or keyed as a Form W–2. The form number ( W–2 and W–3), and the signature line information on Form W–3, must be printed in non-reflective black ink. The word ‘‘Form’’ as well as the form title(s), e.g., Wage and Tax Statement and Transmittal of Wage and Tax Statements, should be printed in red OCR drop-out ink.

.13 The correct scanable image depth of Form W–2, Copy A, must be 4.833 inches, instead of 5.5 inches as previously stated. The correct scannable image depth of Form W–3 on a page must be 4.167 inches, and not 4.4 inches as previously stated. See exhibits A and B.

.14 The Catalog Number, shown on the 1997 Form W–2 as ‘‘Cat. No. 10134D’’, and the Catalog Number shown on the 1996 Form W–3 as No. 10159Y, is used for IRS distribution purposes and should not be printed on substitute Forms W–3 or W–2 (Copy A or employee copies).

.15 Added information regarding extensions of time to file for more than 50

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.01 Employers MUST use magnetic media for filing with SSA if they prepare and file 250 or more 1997 Forms W–2 (Copy A). This requirement applies unless:

1. The employer can establish that filing on magnetic media will result in undue hardship, AND

2. The employer is granted a waiver of the requirement by IRS.

To request a waiver of the magnetic media filing requirement, for the current tax year only, submit Form 8508, Re- quest for Waiver From Filing Informa- tion Returns on Magnetic Media, to:

If by Postal Service:

Internal Revenue Service Martinsburg Computing Center P.O. Box 1359 Martinsburg, WV 25402 –1359

Or, if by truck or air freight: IRS—Martinsburg Computing Center Magnetic Media Reporting Route 9 and Needy Road Martinsburg, WV 25401. Forms may also be FAXED to the IRS/MCC at (304) 264–5602.

Form 8508 may be obtained through electronic options on the Internet at http://www.irs.ustreas.gov, or by calling 1–800–829–3676. Form 8508 also may be obtained directly from the IRS Martinsburg Computing Center (IRS/ MCC) at the above address or by calling (304)263–8700 (not a toll-free number). The number for Telecommunication Device for the Deaf (TDD) is (304)267– 3367 (not a toll-free number). It is recommended that completed requests for waivers (Form 8508) be submitted at least 45 days before but no later than the due date of the return (see Sec. 3.06,

employers. See Part A, Section 3.08, for the new information.

.16 The zip code for P.O. Box number reserved for the Information Returns Magnetic Media Reporting Program has changed. See Part A, Section 3.01.2, for the new zip code.

.17 The Earned Income Credit notification to employees has been removed from the back of Copy C, and must now be printed on the back of Copy B, Form W–2.

.18 Added information on how forms can be ordered through computer on-line services.

.19 Various editorial changes were made.