NC W-2s A-OK

February 20, 2003 ( - There's nothing like a potential problem with the Internal Revenue Service (IRS) to stir things up in the workplace, but North Carolina state employees can apparently relax.

The W-2 Forms issued to state workers are correct after all, at least according to a press release from North Carolina State Controller Robert Powell.   At issue was a decision not to include state employees’ pension contributions on their W-2 forms (see  Incomplete W-2 Could Cost North Carolina Workers Saver’s Credit ).  

However, the W-2 reporting decision has been validated by the IRS, according to the state controller’s office, which notes that “contributions by state employees to state sponsored retirement plans are pre-tax, mandatory, and do not qualify for the Employer Savings Retirement Accounts (ERSA).”   However, contributions to 401(k), 457, and other voluntary retirement plans by state employees are, and are apparently appropriately reflected in Box 12 of Form W-2.  

State Controller Powell stated, “This Office has been flooded with calls from concerned state and local government employees about this issue. While we stand ready to assist all North Carolinians with any fiscal issue of the State, we are concerned about the anxiety that inaccurate news articles have created among our work force.   I hope that this clarification will help ease the minds of those employees by assuring them that their W-2 information is correct as reported.”