Q1 - Why are my W2 Wages different from the YTD wages on my last check stub?
Q2 - Why are my box 1 wages less than my social security wages (box 3)?
Q3 - Why are my social security wages less than the wages in box 1?
Q4-A - My social security tax withheld is more than 6.2% of my social security wages. Why?
Q4-B - My tax software is telling me that Social Security taxes have been over-withheld. Why?
Q6 - My state and/or federal withholding taxes look wrong (too little/too much). Why?
Q7 - What are these items reported in box 12?
Q8 - I need changes made to some (non-financial) data on my W-2. Do I need a reprint?
A1 - W2 Wages do not match YTD on check stub - Top
W2 wages are reduced by pre-tax deductions for benefits under 125c before being reported. The YTD wages reported on a check stub are not. Also, it is possible that some disbursements included in gross on a check stub are non-taxable and not reportable as wages. If an employee had deductions for benefits and/or had non-taxable disbursements on his/her check, this will cause a discrepancy between the check stub and the W-2.
A2 - Box 1 wages < Social Security Wages - Top
A difference between box 1 wages and social security wages is most likely the result of deductions for a 401k or similar retirement plan. 401k deductions are reported in box 12 using code “D”. This amount should reflect the difference between box 1 and box 3 wages. Deductions for other types of retirement plans (i.e. SIMPLE IRA) may also be reported in box 12 using a different code (i.e. S for Simple IRA’s).
A3 - Box 1 wages > Social Security Wages - Top
This is generally due to the maximum social security wage limit being met (87,900).
A4 - Social Security Withholding looks wrong (>6.2%) / Tax software says Social Security Tax over-withheld - Top
Employees reporting cash tips during the year have social security wages reported in two parts on the W2. The tips portion is reported in box 7 (Social Security tips). The balance of social security wages is reported in box 3. The two must be added together to determine the taxable wage base for social security.
A5 - Withholding still looks wrong after adding Box 3 and Box 7 (Medicare wrong too) - Top
In some rare cases, an employee reporting cash tips has insufficient other income to pay all of the Social Security and/or Medicare taxes on those tips. The uncollected taxes are reported in box 12 using code “A” or code “B”. Only the amount actually withheld from checks is reported in boxes 4 and 6.
A6 - State/Federal withholding taxes are too little/too much. - Top
Income tax withholding is based upon elections made by the employee on his/her W-4. Considerable effort is made to ensure that our systems withholding formulas are current and accurate. The payroll department can confirm the employee’s W-4 elections and the actual amounts withheld from pay checks.
A7 - Box 12 reported items - Top
IRS requires that certain items be reported in this box. A guide to these codes and amounts can be found on the back of the employee’s W-2.
A8 - The name, address or social security number on my W2 is incorrect - Top
Per instructions found on the back of the W-2, an employee may manually make changes to name, address and social security number. No reprint is required. However, it is important to record these corrections in our own system. If Teamworks has already submitted its annual W-2 report to SSA (usually around the end of March), then a W-2C should be prepared.