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On line 5c, multiply taxable Medicare wages and tips by 0.029. You and your employee must both contribute 1.45% each paycheck for Medicare taxes.
The W-2 box 12 codes are: A ? Uncollected Social Security tax or Railroad Retirement Tax Act (RRTA) tax on tips. Include this tax on Form 1040 Schedule 2, line 13. B ? Uncollected Medicare tax on tips.
Ing to the IRS, ?fractions-of-cents? adjustments refer to the rounding differences related to the employee portions of Social Security and Medicare taxes.
Code DD is only information to you to tell you how much your employer spend for health coverage - you do nothing with it. Code D is the amount of salary deferrals to a 401(k) plan. You do nothing with than either other than enter it on the W-2 screen in box 12 just like it is on the paper W-2.