• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Taxes and W-2 reporting after death?

by on
in Office Management,Payroll Management

Question: We owe wages to a former employee who died this year. To whom do we make the check payable? What about filing a W-2?

Answer: The check should be made payable to the deceased employee’s estate or beneficiary. The deceased employee’s accrued wages and benefits paid in the same calendar year as death are subject to FICA withholding and reporting only. On this employee’s final W-2, show the payment in Boxes 3 and 5, and the taxes withheld in Boxes 4 and 6. The estate or beneficiary must receive Form 1099-MISC. Report the payment in Box 3. It seems like duplicate reporting, but it’s not. The Social Security Administration uses this information to calculate benefits; the IRS needs the payment information because the estate or beneficiary has income.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/28382/taxes-and-w-2-reporting-after-death "

Leave a Comment