EVERYTHING YOU NEED TO
KNOW ABOUT W-2G’S AND
HOW TO DO IT RIGHT
EVERY TIME
CONTENTS:
Cover
W-2G Introduction
Blank W-2g………………………………….…………………… Pg. 5
Regular W-2g – Handpay Ticket & ID-How-To……………….……Pg. 6 & 7
Withholding W-2g –Handpay Ticket & ID- How –To………..…… Pg. 8 & 9
Alien Withholding W-2g – Handpay Ticket & ID – How-To……….Pg. 10, 11 & 12
What To Do for Withholding If Missed at Cashing Station………..Pg. 13
OTB W-2g – How –To…………………………………………….. Pg. 14
Acceptable ID’s & W-9’s...…………………………………………. Pg. 15-20
Corrections……………………………………………………… Pg. 21
Scanning and Emailing………………………………………………Pg. 22-25
A Few Things Need to Know………………………………………Pg. 26
W-2G INTRODUCTION
W-2G is a form that is used to report gambling winnings to the federal government. In Pari-Mutuel wagering
(OTB and HHR) we are subject to the rules and regulations set forth by the federal government in the reporting
of certain gambling winnings and the following rules trigger a W-2G situation:
The winnings reduced, at the option of the payer, by the wager are:
a. $600 or more,
and
b. At least 300 times the amount of the wager,
or
The winnings are subject to federal income tax
withholding (either regular gambling withholding or backup
withholding).
As you read through the following pages please keep in mind that the majority of all jackpots and OTB
winnings are probably going to be signed for by a legal citizen of the United States. Approximately 1or 2% of
all taxable winnings are signed for by a foreign person and will be subject to a higher withholding rate of 30%.
THIS IS THE BLANK W-2G FORM THAT YOU
WILL USE FOR JACKPOT WINNINGS ON HHR
AND FOR WINNINGS ON OTB.
THIS FORM HAS 8 TOTAL PAGES.
PAGES 5 & 8 ARE INSTRUCTION PAGES.
• Have the winner sign the top 2
copies. We keep the first page, Copy
A, signed and dated by the winner
along with a copy of this page and the
accompanying ID’s and handpay
ticket (winning ticket and taxes ticket
for OTB).
• The winner receives all other
copies for their records.
JACKPOT HANDPAY TICKET FROM
CASHING STATION
W-2G FILLED OUT USING HANDPAY
TICKET
Date box #2
Transaction box # 5
Window box
#10
These are all the boxes that require
information from the handpay ticket for
a regular W-2g payout.
WINNER IDENTIFICATIONS
W-2G FILLED OUT USING HANDPAY
TICKET
Social Security # in boxes 9 & 12
Name and Address
On DL last name is listed
first then the first name and
middle name or initial.
These are all the boxes that require information
from the Driver’s License and Social Security Card .
The amount in box #1 is the total amount of the
winnings. The amount in box # 4 is the federal
withholding calculated at 24%. The rest of the
form is filled out like normal.
The federal income tax withheld shows
up on the handpay ticket when you touch
the ticket on the screen and the tell the
system to withhold the taxes.
24% FEDERAL INCOME TAX MUST BE
WITHHELD ON WINNINGS OF $5000 OR
HIGHER.
*30% for Alien Withholding*
This is ONLY for JACKPOT HANDPAY
tickets.
NOT for cancelled credit handpays.
To calculate the Alien withholding you must run the
handpay out and then calculate the withholding at 30% of
the winnings and handwrite the information on the
handpay ticket.
If this person had a Cuban driver’s license that would be used
along with the passport as it would show his address in Cuba
Alien withholding must be done on all jackpots subject
to taxation.
This is 30% withholding on any taxable amount and
must be done if the winner is not a citizen of the United
States only the following will be accepted as proof of
identity:
• FOREIGN PASSPORT/DRIVER’S ID – Only has
a foreign passport or driver’s license with photo
• *Please see pages 14-16 for details*
As you can see here the
withholding was not done at the
cashing station.
However, if you catch this BEFORE
filling out the W-2g you can make
the corrections on the ticket itself
and fill out the form accordingly.
*Please see page 10 for making a
correction on the handpay ticket.*
**PLEASE NOTE AS OF JANUARY 2018
THE WITHHOLDING AMOUNT WAS
CHANGED TO 24% WHICH IS NOT
REFLECTED ON THE HANDPAY TICKET
PICTURED HERE.**
When a taxable winnings is hit for OTB the manned terminal will
tell you by asking for the winners Tax ID when you put the ticket
into the machine to pay. At that time you will type in the winner’s
social security number, hit enter and the terminal will read the
winning ticket and issue 2 TAXES tickets.
All the information you will need for the form is contained on the
TAXES ticket. We keep the winning ticket and 1 of the TAXES
ticket with the signed form. The other TAXES ticket goes to the
winner with their copies of the W-2g.
ACCEPTABLE ID’S – U.S. ID’s
THE IRS REQUIRES 2 FORMS OF IDENTIFICATION TO SIGN FOR A W-2G:
Except for a payee of winnings of a state-conducted lottery, a
payee of gambling winnings meeting the withholding thresholds
from horse racing, dog racing, jai alai, sweepstakes, wagering
pools, lotteries, and certain other wagering transactions must
present two forms of identification, one of which must include the
payee's photo. A completed and signed Form W-9 is acceptable
as the other form of identification.
NEVER, AT ANY TIME, WILL A PHOTO COPY OF AN ID OR SOCIAL CARD BE
ACCEPTED AS PROOF OF ANYTHING.
The only “photo copy” that would be accepted is of a driver’s license that has been given
to that person until their new permanent license arrives in the mail.
**PLEASE NOTE: All W-9 forms MUST be filled out and signed by the winner.
We can type in their name and address but the remainder MUST be filled in by the
winner themselves and signed and dated for the W-9 to be valid-NO EXCEPTIONS.**
W-9 is used when a Social Security card
or other proof of social is not available.
This form must be filled out and signed
by the winner, including the social. As
you can see here the name and address
were typed in but the social and
signature and date are done
*NOT TO BE USED FOR ALIEN
WITHHOLDING!*
State Issued Drivers License
Non Expired
Acceptable forms of picture ID-U.S.
Included in this would be any photo
ID that has been issued by a governing
body, either federal, state or county is
acceptable.
State Issued Identification Card
Non Expired
US Gov’t Issued Passport
Non Expired
ALL OF THESE
EXAMPLES ARE
ACCEPTABLE FOR
SOCIAL SECURITY
PROOF
If a social security card or an
item issued by a governing
authority such as federal,
state or county is not
available a W-9 is acceptable.
Medicare Cards are only acceptable
if the claim number on the card
does not end with the letter “D”
This is a Green Card issued by
the United States Government
showing a resident status. As long
as this person has a social security
card or proof of social (photo
copy of a social card is not
acceptable) we would not need to
withhold 30%.
If this card is expired and the
winner has no social security card
to show with this we would have
to do 30% alien withholding.
ID’S SIGNALING
ALIEN
WITHHOLDING
A picture ID is all that is
required for alien
withholding.
DO NOT USE FORM W-9!
When making corrections
to a form that has already
been signed by the winner
you MUST do the
following:
• Check the
CORRECTED box at
the top of the form
• Either cross out or
draw a line through the
items that are
incorrect.
• Write in the correct
information.
• MUST DO THIS TO
ALL COPIES WE
HAVE
• Make a copy of the
corrected form and get
it to the winner for
their records.
• Re-scan and re-email.
When it is all done and ready to go you will need to email the finished W-2g and W-9’s
to the correct people.
Regular (non-withholding) W-2g’s need to be emailed to the following:
Tom Tucker @ tomptucker@gmail.com
Margaret Edwards @ margarete@wyominghorseracing.com
Nina Condos @ ninahorseracing@Hotmail.com
SUBJECT LINE: W-2G Last Name
ALL Withholding (including and particularly Alien withholding) W-2g’s email to:
Tom Tucker @ tomptucker@gmail.com
Maggie Skiver @ maggies@wyominghorseracing.com
Eugene Joyce @ eugenej@wyominghorseracing.com
Margaret Edwards @ margarete@wyominghorseracing.com
Tim Lattner @ timl@wyominghorseracing.com
Nina Condos @ ninahorseracing@Hotmail.com
SUBJECT LINE: W-2G Withholding Last Name
***PLEASE NOTE IF A CORRECTION TO A W-2G IS NEEDED PLEASE REEMAIL TO THE CORRECT PEOPLE LISTED ABOVE.****
This is a shot looking down on the
scanner glass from above.
The social security card and photo ID’s
are at the top of the glass, then the signed
form then the handpay ticket.
Everything is pushed to the to very top
edge of the scanner glass so that none of
the handpay ticket is cut off.
While the items are on the screen for
scanning make 2 copies of this. 1 for us
and 1 for the winner.
Here is the copy made from the items on the
scanner.
As you can see the drivers license and social are
easy to see and the signed form is intact with phone
number and the handpay ticket at the bottom isn’t
cut off.
We make 2 copies, 1 for us to keep and 1 for the
winner.
All easy to read at a glance.
Here is the finished and stapled W-2G ready
to be put in the safe.
The copy of the ID’s, form and handpay ticket
is on the bottom of the pile. Then the ½ page
of the original signed W-2g is on top and the
winning ticket is stapled on the very top of the
page.
*PLEASE NOTE*
If you have a W-9 you would put that form on
the bottom of the pile.
HERE ARE A FEW THINGS THAT YOU NEED TO KNOW ABOUT W-2G’S:
First, this is a Federal document and any falsification in any way can be considered fraud and comes with some harsh penalties
courtesy of the federal Government and Wyoming Horse Racing LLC.
FALSIFICATIONS INCLUDE: Knowingly allowing someone else to sign for the actual winner. Changing of any of the
information on a signed form WITHOUT checking the corrections box at the top of the form and/or not getting a corrected
form to the winner. Penalties Include: Immediate termination for knowingly allowing someone else to sign for the actual
winner. Verbal write up for changing any information without checking the corrections box and not getting the corrected copies
to the winner or the company.
Second, when making a correction to a form that is already signed for by the winner you MUST check the Corrected box at the
top of the form. Then you MUST get a copy to the winner (even if you have to snail mail it). You MUST correct all copies you
have with the changed information. You must email that corrected form to the correct people *see page 21*
With the following SUBJECT LINE: *Corrected W-2g Last Name
Third, we (Wyoming Horse Racing LLC) are responsible for all the information contained on the W-2g’s and that information is
sensitive (social security #, address etc..). Therefore it is EXTREMELY important that we secure that information correctly by
putting all W-2g’s and W-9’s in a secure spot (either the safe or locking filing cabinet) please consult your site Manager or
Assistant Manager for where the form needs to be stored. ALL W-2g’s must be snail mailed to the corporate office in Evanston
(PO Box 3210, Evanston, WY 82931) where they will be kept for 1 calendar year. The Manager or Assistant Manager are
responsible for sending the W-2g’s to the Corporate office every month, if you get too many and are afraid of losing some please
send them in batches throughout the month or however many times a month to keep them from being lost or torn up.