Rachel_W
Expert Alumni

Retirement tax questions

As you mentioned in your question, Form W-2 Box 13 has 3 Different "Check Boxes".  Below is an explanation of each:

  • Statutory Employee: If this box is checked, you are treated as Self-Employed for tax purposes and must report your income and expenses on Schedule C.  This status usually applies to Employees working on Commission like Real Estate Agents, Life Insurance Salespersons, and Direct Sellers.
  • Retirement Plan: If this box is checked, it means you had access to a Retirement Plan through your Employer during the year such as a 401(k). A check in this box may limit your ability to get other tax incentives for retirements plans like deductible IRA Contributions.
  • Third Party Sick Pay: If this box is checked, you received payments for sick-pay from a company other than your employer, usually an insurance company.  Generally, these payments are not included as Wages in Box 1 of your Form W2.