The two are the sum of the respective numbers on the W-2's, so if they are wrong it is in turn because one or more of the W-2's are wrong. Same occupation, different pay: How wages vary - Bureau of Labor Statistics So I have an employee who works just over the border in another state. You have clicked a link to a site outside of the QuickBooks or ProFile Communities. <> I'm here to help. Press Ctrl+E while in the field (1) Wages, Tips, Other Compensation. Box 17: State income tax withheld. If you received any scholarship, stipend, housing allowance, royalty payments, or other types of award that is paid to a nonresident, this is generally recorded on a 1042-S form. How can nonresident aliens get an ITIN before tax season? Income tax laws vary by state, but it's fairly common for the state where you're employed to want income tax (in states that have income tax) regardless of where you live. Is there a generic term for these trajectories? Complaints, Appeals, and Investigations. In certain States, items that can be excluded from federal wages (for instance contributions to some types of retirement accounts) are not deducted from state salaries. To determine Social Security and Medicare taxable wages on your W-2, again begin with the Gross Pay YTD from your final pay stub and make the following adjustments if applicable: Social Security and Medicare Taxable Wage Adjustments to Gross Pay YTD: Before-Tax Dental deductions YTD Before-Tax Vision deductions YTD Before-Tax FSA Health deductions YTD Before-Tax FSA Dependent Care deductions YTD Before-Tax HSA deductions YTD Before-Tax Parking deductions YTD Before-Tax T Pass deductions YTD, Add GTL imputed income from Box 12C on your W2. 32 . Did the Golden Gate Bridge 'flatten' under the weight of 300,000 people in 1987? You may see boxes 1, 3 and 5 have different amounts and wonder if this is wrong. Take care, and I wish you continued success, 2020 General Instructions for Forms W-2 and W-3, General Instructions for Forms W-2 and W-3, Year-end checklist for QuickBooks Desktop Payroll, QuickBooks Community Chatter Series: Episode 1, Federal income wages and tax amount withheld. My CA state wages are $6,000 lower than the federal because my employer paid benefits for my domestic partner that are taxed by the federal government but not the state. W-2 Displays the following income items: Federal 30,000, Arkansas 12,000, Kentucky 16,000, and Ohio 31,000, Enter this information accordingly:In the field, (1) Wages, tips, etc. ;u{|nMcClDT;]D'h&4[$YI'tvw0.t7^t%qG"VWp;FZo>@g,)p Z-sU8r2*j:qRn$H(caQ6xitd&:r)( 4s_8?/iVT6l"}ld/iLF%Vu=ZPB*|GyNBR6-kMIy#$|@KtoZZ$?a0+n!BOpF6MG~P@@@_a Spicemas Launch 28th April, 2023 - Facebook In most cases the Wage Base for Federal and State taxes will be the same. The amount reported with code DD is not taxable. I don't know of cities or counties that doe this (they normally key off of the state income), but we don't know which state and which locality you are talking about. So NOW what do you suggest I do, QB help? In such a case, federal wages and state wages reported on W-2 form would differ. You should only use the (16) Stage wages, if different field on Screen 10, Wages, Salaries, Tips for multi-state W-2s if the amount of wages for the resident state is more or less than the federal amount. For example, you may need to use this field if the home state doesn't recognize pretax deductions to taxable wages, so the state taxable wages are greater than the federal wages that do recognize pretax deductions. Hi there, @superiordry. I'll definitely reach out to my employer and check the city tax website - that's something I hadn't thought about. Lets look at an example of an employee who has a 125 health insurance plan.The employee made $75,000 and contributed $5000 to their health insurance this year.
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