W-2 Box 13 — Statutory employee · Retirement plan · Third-party sick pay
Three checkboxes (not dollar amounts): Statutory employee, Retirement plan coverage, Third-party sick pay. Each has separate tax-return implications.
At a glance — Box 13
- Box name
- Statutory employee · Retirement plan · Third-party sick pay
- Reports to
- Varies — statutory employee amounts go to Schedule C; retirement plan box affects IRA deductibility.
- Check against
- Your employment classification and plan membership — check with HR if uncertain.
What Box 13 means
Box 13 is three separate checkboxes on the W-2, each triggered by a specific situation. Statutory employee means you are a W-2 employee for FICA purposes but an independent contractor for income tax purposes — your Box 1 wages go on Schedule C (where you can deduct related business expenses) instead of Line 1a of the 1040.
Retirement plan marks you as an 'active participant' in an employer-sponsored retirement plan for any part of the year. This triggers the traditional IRA deduction phase-out under §219(g): if covered, your IRA deduction phases down to zero over an income range that is indexed annually by the IRS — see IRS Publication 590-A for the current year's MAGI thresholds.
Third-party sick pay indicates that some or all of your W-2 wages came from an insurance company paying short-term or long-term disability — relevant for state disability benefits and federal income tax treatment.
Tax return implications
- Statutory employee: Box 1 goes to Schedule C Line 1 (allowing deductions); FICA already paid is NOT additionally taxed on Schedule SE.
- Retirement plan: triggers IRA deduction phase-outs on Form 1040 Schedule 1, Line 20.
- Third-party sick pay: typically taxable and federal income tax may not have been withheld — check Form 1040 carefully.
Common pitfalls & things to check
- Statutory employee status applies only to four categories: agent-drivers, full-time life insurance salespeople, home-workers following employer specifications, and full-time traveling or city salespeople. It is not 'independent contractor with a W-2'.
- Even being covered for one day in a year triggers the Retirement plan box — and the IRA phase-out — so check your W-4 / HR record if uncertain.
- Third-party sick pay boxes sometimes have incomplete income-tax withholding; expect to owe at filing time unless you sent Form W-4S to the payer.
Related W-2 boxes
Box 14 — Other (state disability, union dues, RRTA, NYC SDI, and more)
Free-form 'Other' box used by employers for items not covered elsewhere — state disability insurance, union dues, uniform allowances, educational assistance above $5,250, etc.
Box 1 — Wages, tips, other compensation
Your taxable federal wages for the year — gross pay minus pre-tax deductions like traditional 401(k), Section 125 cafeteria plan contributions, and pre-tax HSA.
Box 2 — Federal income tax withheld
Total federal income tax your employer withheld from your paychecks during the year, based on your Form W-4 elections.
Box 3 — Social security wages
Your wages subject to Social Security tax, capped at the annual wage base. Differs from Box 1 because traditional 401(k) deferrals are not excluded.
Reconciling your W-2 at tax time? Use the paycheck calculator to verify expected federal, Social Security, and Medicare withholdings on your salary, and the federal income tax calculator to estimate your refund or balance owing before you file.
Related Calculators
Paycheck Calculator
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Federal Income Tax Calculator
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W-4 Withholding Optimizer
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FICA & Social Security
6.2% SS to $176,100, 1.45% Medicare, 0.9% additional Medicare
Tax Refund Estimator
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401(k) Calculator
Contribution limits, employer match, tax-deferred growth
Sources
W-2 box definitions per IRS General Instructions for Forms W-2 and W-3 and IRC §6051. Rates and thresholds current for tax year 2025 (file by April 15, 2026); 2026 figures included where published.