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FAQs - Auto Enrollment - How does an employer report an employee's automatic enrollment contributions to a retirement plan?

An employer reports automatic enrollment contributions deducted from an employee’s wages on the employee’s Form W-2, Wage and Tax Statement, in accordance with this form’s instructions. Even though automatic enrollment contributions from an employee’s pre-tax wages are not treated as current income for federal or some states’ income tax purposes, they are included as wages subject to social security (FICA), Medicare and federal unemployment taxes (FUTA). Any automatic enrollment contributions deducted from an employee’s after-tax wages are current income for purposes of FICA, Medicare, FUTA, and federal and state income tax purposes.

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Page Last Reviewed or Updated: 11-Feb-2014