Why is the employees W-2 wages different than what was on the paycheck stub?
W-2 Box 1 shows Gross Taxable Wages that are reported to the IRS. The employee paycheck stub has both Gross Wages and Gross Taxable Wages. If the employee had any pre-taxed deductions there may be a difference. For example, deductions such as 125 cafeteria, 401(k)’s, and Simple IRA are tax-exempt. These deductions are subtracted from the employee’s total gross wages, to give gross taxable wages.
Related Questions
- On my Form W-2, why would line 1, wages, tips, other compensation, be different from line 3, social security wages, and line 5, medicare wages and tips?
- My wages on my W-2 do not match my final check stub of the year. What is the problem?
- Why is the employees W-2 wages different than what was on the paycheck stub?
