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Why is there a difference between Box 1 and Boxes 3 & 5 on my W-2 Form?

April 26, 2017Box boxes difference form W-2

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Why is there a difference between Box 1 and Boxes 3 & 5 on my W-2 Form?

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Contributions to the TRS & ORP Retirement Plans, Tax Sheltered Annuity, and Deferred Compensation plans are exempt from Federal Income Taxes but are not exempt from Social Security and Medicare tax withholding; therefore, the Social Security and Medicare wages reported in Boxes 3 & 5 of your W-2 will tend to be higher than the Federal Income taxable wages reported in Box 1.