U.S. · Payroll & tax forms
W-2 box 13, the three checkboxes.
Statutory employee, retirement plan, third-party sick pay: what each box means.
Box 13 has three independent checkboxes. Statutory employee marks certain workers who are treated as employees for Social Security and Medicare but have no income tax withholding. Retirement plan means you were an active participant in a qualifying plan for any part of the year, not that you are vested or contributed. Third-party sick pay is a payer flag. Check all that apply.
Should the retirement plan box be checked?
Result
Statutory employee
Check this box for statutory employees: workers whose earnings are subject to Social Security and Medicare taxes but not to federal income tax withholding. Do not check it for common-law employees. These are people who would be independent contractors under the common-law rules but are treated as employees by statute. The instructions list four groups.
| Statutory employee type | Description in the instructions |
|---|---|
| Delivery driver | A driver who distributes beverages (other than milk) or meat, vegetable, fruit or bakery products, or who picks up and delivers laundry or dry cleaning, if the driver is your agent or is paid on commission |
| Life insurance agent | A full-time agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company |
| Home worker | An individual who works at home on materials or goods that the payer supplies and that must be returned, if the payer also furnishes specifications for the work |
| Traveling salesperson | A full-time traveling or city salesperson who turns in orders from wholesalers, retailers, contractors or hotels, restaurants and similar establishments, for merchandise for resale or supplies used in the buyer’s business, as their principal business activity |
Payments to statutory employees go in box 1 as other compensation. The instructions send you to Pub. 15-A, section 1, for the detail.
Situations at a glance
| Situation | Retirement plan box? | Note |
|---|---|---|
| Defined benefit plan (such as a traditional pension) and you qualify for employer funding by age or years of service | Yes | Even if you are not vested and may never collect benefits. |
| 401(k) or 403(b) (including Roth): eligible to contribute, but you elect nothing | No | Unless the employer contributes funds (see below). |
| 401(k) or 403(b) (including Roth): eligible and you elect to contribute this year | Yes | Any contribution by you during the year counts. |
| 401(k) or 403(b): you contribute nothing, but the employer contributes funds | Yes | Employer contributions make you an active participant. |
| 401(k) or 403(b): you contributed in past years, not this year | No | Even if the account value grows from investment gains. |
| Profit-sharing plan with a grace period after plan year-end for contributions | Yes | Unless the employer contribution is purely discretionary and none is made by the end of the plan year. |
| Contributions only to a section 457(b) or nonqualified plan | No | Do not check the box for these plans. |
Retirement plan
The retirement plan box applies if you were an active participant, for any part of the year, in a qualified pension, profit-sharing or stock-bonus plan under section 401(a) (including a 401(k)), a section 403(a) annuity, a section 403(b) annuity or custodial account, a SEP, a SIMPLE retirement account, a section 501(c)(18) trust, or a government plan other than a section 457(b). A defined benefit plan counts for any year you are eligible to participate. A defined contribution plan counts for any year employer or employee contributions, or forfeitures, are added to your account. The instructions send readers to section 219(g)(5) and Pub. 590-A for the active participant rules, which are IRA-contribution rules.
Third-party sick pay
This box is checked only by a third-party sick pay payer filing a W-2 for an insured’s employee, or by an employer reporting sick pay paid by a third party (see Pub. 15-A, section 6). On Form W-3 the same indicator does not create a separate kind of payer.
Worked example
Dev works for a company with a 401(k). He elected no contributions in 2026, but the company made a matching contribution on his behalf anyway. By the IRS chart, an eligible employee who contributes nothing but whose employer does contribute is an active participant, so the retirement plan box is checked on his W-2. A colleague who put money in during 2022 and nothing since, with no employer money going in, would have the box unchecked.
Fixing a wrong checkbox
If your employer checked the retirement plan box by mistake, the correction goes on Form W-2c. The instructions say box 13 is checked under “Previously reported” as the original was, and under “Correct information” as it should have been.
More W-2 box guides
Other pages in this set: W-2 Box 11 Nonqualified Plans, W-2 Box 10 Dependent Care Benefits, W-2 Box 7 Social Security Tips, W-2 Box 8 Allocated Tips. For box 12 codes, use the W-2 box 12 lookup.
Sources
- General Instructions for Forms W-2 and W-3 (2026). Read November 2, 2026.
IRS pages last reviewed April 30, 2026. Wage-base and exclusion figures are stated for the tax year named where they appear.
Frequently asked questions
What are the three checkboxes in box 13?
Statutory employee, retirement plan and third-party sick pay. Check all that apply.
Does the retirement plan box mean I am vested?
No. For a defined benefit plan the box is checked if you qualify for employer funding by age or years of service, even if you are not vested or never collect benefits.
Why is the retirement plan box unchecked on my W-2 if I have a 401(k)?
If you were eligible but contributed nothing this year and the employer put nothing in, the IRS chart says the box is not checked.
Who is a statutory employee?
A worker treated as an employee by statute for Social Security and Medicare, such as certain delivery drivers, full-time life insurance agents, home workers and traveling salespeople. Payments go in box 1 without income tax withholding.
Who checks the third-party sick pay box?
Only a third-party sick pay payer filing a W-2 for an insured’s employee, or an employer reporting sick pay paid by a third party.
Not tax advice
This page summarizes IRS instructions, mostly written for the employers who prepare the form, and is not tax, legal or financial advice. Your payer, a CPA or an enrolled agent can confirm what a box means for your return. Everything runs in your browser; nothing you enter is sent anywhere.