It covers other types of income like rental income, investment income, and other fees and services that you might have paid for. Home. Ask questions, get answers, and join our large community of Intuit Accountants users. Sometimes employers use unused boxes for other information when they should not. !function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)? Box 12C: Group term life (GTL)Box 12E: 403B TDA deductionsBox 12G: 457 Plan deductions, Box 12M: Uncollected Social Security Tax on taxable GTL, Box 12N: Uncollected Medicare tax on taxable GTLBox 12P: Excludable moving expensesBox 12T: Adoption benefits, Box 12DD: Cost of employer sponsored Health InsuranceBox 12W: Employer contributions and employee elected contributions to HSA, Corporate CardEmployment Tax IssuesGLACIERPeoplesoftPCardTravel ReimbursementUniversity Tax Issues, 1033 Mass Avenue 2nd Floor Cambridge, MA 02138, Copyright 2023 The President and Fellows of Harvard College, Office of Financial Strategy and Planning. Box 16 reports the total amount If there are incorrect amounts or errors, you need to review your paychecks and the payroll items linked with them. The Social Security Wage Base for 2019 was $132,900. This amount may be 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. How the U.S., other countries differ in setting minimum wage | Pew It is common for state wages in NJ and CA to be higher than federal wages, because these state do not recognize some common federal deductions. Why does Acts not mention the deaths of Peter and Paul? Some states and localities do NOT recognize deductions which reduce the taxable salary, such as 401K or 403B contributions. I rented a car from AVIS, chose not to have to Loss Damage Waiver. Making statements based on opinion; back them up with references or personal experience. You may see boxes 1, 3 and 5 have different amounts and wonder if this is wrong. Worked in two states for same company, state taxes look odd on W-2 Get Support. Does your employee have any of the following? W2 Federal(box 1) and State(box 2) amounts different : r/tax - Reddit >> Box 16 (State Wages) shows the wages earned in that particular state? of taxable wages earned in that state. <> When you locate the difference, then consider if it is correct or not. It is subject to Social Security and Medicare taxes, so its included in Boxes 3 and 5. Browse other questions tagged, Start here for a quick overview of the site, Detailed answers to any questions you might have, Discuss the workings and policies of this site. Do you even have a local tax where you live? When preparing your tax return you will need to include some details from your income documents about the money you earned and taxes you paid in the US. Enter the wages and other information from Form W-2. Box 17 How do I use Form 8915 to report my 2020 COVID What's the difference between a conversion and Premier investment & rental property taxes. There are several types of employees who are not subject to some Federal taxes per IRS rules. Why are players required to record the moves in World Championship Classical games? Thanks for joining the thread. A little different though. California does not conform to federal law . Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type. My 401(k) contributions were being withheld/taxed at the local level, but not at the state level. The documents you receive will depend on the type of income you earned. This is a taxable fringe benefit known as Personal Use of Company Car (PUCC).The employee made $75,000 and the value of PUCC is $5000 for the year. If an employee elected to contribute to a pre-tax retirement plan, their W-2 Box 1 wages are likely lower than their Box 3 wages. Box 16&18 have different figures, I did not work in different locations, what do I do about box 18, should I add it to the box 16? GagaZA66N0tL-ESZ5wlAm/,M;${Udp~ip :=Ie0}s6O{AB,yC@t3Lxd| v;2iO)x@KmP9(_gw-V_\lZ4h\BGU^W[bK7Pp"|oGtpj#":uInL5.@mZJ'(;Y\O f}qo9 Because QBO again does not give it's operator any executive function, and therefore does not allow us to edit the W2s to correct them. Many do. If any of the W-2s are W-2Cs (corrected copies of the same W-2), only enter those one time each. To subscribe to this RSS feed, copy and paste this URL into your RSS reader. The second reason for this difference might be the fact that your wages are exempt from the tax treaty between your country and the USA. Box 17: State income tax withheld. To learn more about how Quickbooks defined each box and field on the W2/W3 Form, I recommend checking out these articles: I also recommend checking out the topics from this link for additional tips when preparing your year-end forms and taxes:Year-end checklist for QuickBooks Desktop Payroll. Please refer to the UC Berkeley Web Accessibility page if you are having difficulty accessing any of the information and/or content on our websites, or if you have an accessibility related question or comment. This is probably the least common income form for nonresidents. Ask questions and learn more about your taxes and finances. Code W: Employer Contributions (including amounts the employee lected to contribute using a section 125 (cafeteria plan) to your health savings account. Otherwise you'll have to ask your employer. ?0j^CFGjg'c@5J/+.A7B 'DM3Y^BIF-B\*[i?e_*Vn >i-_&gwNi2)n5j?A&Ezkz~-jm~;?/aG.^}^h,~#}@w>2Q\$OoN`",$$R My Box 18 (local wages) is higher than Box 5 which I always thought reflected my gross wages. He also rips off an arm to use as a sword. Code DD: Cost of employer-sponsored health coverage. So QBO payroll decides that I need to report him to both states. Which language's style guidelines should be used when writing code that is supposed to be called from another language? 2 0 obj 32 . Hand off your taxes, get expert help, or do it yourself. endobj 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. Can we please revisit this question in 2022. The difference can be significant if you get a substantial raise or reduction. Ask questions and learn more about your taxes and finances. If you worked for the same States can set their own minimum wages, and so can local governments. The author takes no responsibility for the accuracy of any information in this post.**. Check with your state labor market information office for additional data specific to where you live. For example, if you worked from Dec. 18, 2022, through Jan. 3, 2023, and were paid on Dec. 25, 2022, and Jan. 10, 2023, respectively . Why don't my state and local wages match on my W-2? Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. )Pre-retirement distributions from retirement plansProfit sharingUniform, automobile, moving & travel allowancesReimbursements in excess of deductible expensesEmployee contributions to costs of fringe benefitsEmployer provided educational assistance, and/or reimbursement (taxable to the same extent as for federal taxation)Royalties, if not derived from intangible propertyStock options (taxed when exercised, valued at market price less option price on the date the option is exercised)Employer paid premiums for group term life insurance (taxed to the same extent as for federal taxation)Compensation paid in goods or services orproperty usage (taxed at fair market value)Excess employee discountsIncome from wage continuation plans (including retirement incentive plans, severance pay and golden parachute payments)Income from guaranteed annual wage contractsPrizes and gifts if connected with employmentDirector feesIncome from jury dutyUnion steward feesDisability pay if received as a benefit of employment (includes third party plans)Income received as a result of a covenant not to compete. If the PA state wages and local wages are not the same or if no local wage (box 18) is reported or there is a higher wage figure listed in another income box, compare the wages reported in box 5 (Medicare wages) with box 16 (state wages-PA). 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. Wage and Hour Compliance - Government of New Jersey When I do not. Press Ctrl+E while in the field (1) Wages, Tips, Other Compensation. /Annots [9 0 R 10 0 R] Frequently Asked Questions. This employee is still subject to Federal Income Tax and their pay is included in Box 1 on the W-2. <> Enter US if the item pertains to the Federal amount, a return not being processed, or to a state with no income tax. Actually, no. You would have to ask your employer that. Understanding Your W-2 | Controller's Office Enter the amount of income for each state, that does not exceed the Federal total income. Did you work in different locations? Controller's Office1608 Fourth Street, Suite 201Berkeley, CA 94710-1749. PA - State Wages Not Flowing to the PA Individual Return (W2) We are a Michigan company with a few Wisconsin employees and on my W-2 it shows the Michigan & Wisconsin wages but it is duplicating the State wages on my W-3? This may help other users who experienced the same scenario as you with their W-2s in QuickBooks Online Payroll (QBOP). State Wages are simply the wages taxed for the state income tax item, the Wage Base in QuickBooks. By clicking "Continue", you will leave the Community and be taken to that site instead. After much wasted time, I see that the issue is that one employee, and on his W2, both states are listed. Box 1 is wages for federal taxes, Box 3 is wages for SS tax, Box 5 is wages for Medicare tax, Box 16 is wages for state income tax, and Box 18 is wage base for local taxes. The State of NJ site may contain optional links, information, services and/or content from other websites operated by third parties that are provided as a convenience, such as Google Translate. A state doesn't have to have a minimum wage law, but as of 2021, 29 states and Washington, D.C., did. My W-2 shows my state income broken up between the two states in box 16. Stack Exchange network consists of 181 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers. The employee made $40,000 in regular pay and $10,000 in tips this year. Site design / logo 2023 Stack Exchange Inc; user contributions licensed under CC BY-SA. https://www.askmehelpdesk.com/showthread.php?t=17149, Send a private message to AtlantaTaxExpert. Hello there, @lauralulu1. You have clicked a link to a site outside of the TurboTax Community. If you worked for the same I'm always ready to help. 4 0 obj This is because tips are included in the amounts in boxes 1 and 5. - Figure out why they are wrong by looking at the data. We'll help you get started or pick up where you left off. Berkeley Main PageOffice of the Vice Chancellor of Finance - Chief Financial Officer, Copyright 2023 UC Regents; all rights reserved, Office of the Vice Chancellor of Finance - Chief Financial Officer, Wages, bonuses, and other cash compensation (including prizes or awards), Taxable employee business expense reimbursements, Health care (HCRA) and Dependent care (DepCare) contributions. The city tax dept web site would be another place to check. Note: This is different from an employee claiming exempt on their W-4 for Federal Income Tax. aD59G^JwzQjzJgX]m~2>q{TiuPo\+VK\3QFU}/ Registration and Permits. So NOW what do you suggest I do, QB help? (Ctrl+W if multi-state) enter, 12,000 AR16,000 KY2,000 US.The total will show 30,000.Results: 30,000 will flow to Form 1040, line 7, 12,000 will flow to Arkansas, and 16,000 will flow to KentuckyIn the field, (16) State wages, if different enter31,000 OHResults: 31,000 will flow to the Ohio return. Understand Your W2 Wages | Office of the Controller - Harvard University entertainment, news presenter | 4.8K views, 28 likes, 13 loves, 80 comments, 2 shares, Facebook Watch Videos from GBN Grenada Broadcasting Network: GBN News 28th April 2023 Anchor: Kenroy Baptiste. NG.A7 QozUKsPV,BMVK ._MUPRUdO9"{H8[?va%Sp&{Bf_@U K9Bj D;$/>VFNGs:%hS3=sZfyXC:ARE &N$9! NJ Wage and Hour Division and Contract Compliance - Online Services Discrepancy in W2 form's state tax (resident of one state; worked in endobj However, CA wages in Box 16 may differ from Box 1 federal wages for the following reasons: Wages earned in another state. Understand why the wage amounts are different on your employee's W-2 Does Ohio also allow these amounts to be excluded? This, in turn, means you'll likely have to amend your federal or state tax forms for one or more quarters. I can guess this is something to do with 401k being treated differently for local and state taxes, but I'm not sure exactly how. You need to check with your city. Please check if your details are correct. Employer Withholding - Taxability - Ohio Department of Taxation Is there local tax withheld on box 19? It is not common to have any local tax at all - only a very few states even have a local tax. However, the local income reported in box 18 is signifcantly more than the second state income (the state I moved to) in box 16. . For example, the combined wage and benefit rate that prevails for food service workers on federal contracts in Durham, North Carolina, is $15.45nearly twice the state minimum wage of $7.25. Just enter your W-2 exactly how you see it and TurboTax will take care of putting those amounts on the correct tax return. Box 18 reports the total amount of wages subject to local, city, or other state income taxes. 9 What are the withholding requirements on prizes (either money, goods, or services) awarded through raffles and other charitable fundraisers? Thanks. rev2023.5.1.43405. Support Wage & Hour Website FAQs Contact Us. So if you had state withholding in more than one state, you would see the first state listed in box 15 followed by the wage earned in that state in Box 16. Live Chat team is available 24/7 to help you. It is subject to and additional 20% tax plus interest. reports the total amount of state income taxes withheld from your It is subject to Social Security and Medicare taxes, so it's included in Boxes 3 and 5. The difference can be significant if you get a substantial raise or reduction. The withholdings are correct! Solved: Why is Box 18 higher than Box 5? - Intuit By clicking "Continue", you will leave the Community and be taken to that site instead. to receive guidance from our tax experts and community. Your New York number reports total wages earned while residing in New York. 3 0 obj This amount is laso included in box 1. However, my federal adjusted gross income is entered for box 13 with no adjustment in box 14 (subtractions). Box 1 - Wages, tips, and other compensation (for Federal Income Tax): 65,000.00 (75,000 - 10,000), Box 5 - Medicare wages and tips: 75,000.00, Box 1 - Wages, tips, and other compensation (for Federal Income Tax): 70,000 (75,000 - 5,000), Box 5 - Medicare wages and tips: 70,000.00, Box 1 - Wages, tips, and other compensation (for Federal Income Tax): 75,000.00, Box 5 - Medicare wages and tips: 80,000.00, Box 1 - Wages, tips, and other compensation (for Federal Income Tax): 50,000.00, Box 5 - Medicare wages and tips: 50,000.00. Hence, the diffierent amounts for salary. Each box or line on your forms is defined by the information you've entered and set up into QuickBooks. If the Forms W-2 show amounts from more than one state or locality, this report as one sum on the Box 16. It can be normal to get different numbers, but it's not that common. Learn about things that affect the amounts in Boxes 1, 3 and 5 on your employees W-2s. Most action to raise minimum wage is at state and local level, not in employer in multiple state, there may be multiple lines of information. To learn more, see our tips on writing great answers. Wage and Hour Division and Contract Compliance PO Box 389 Trenton NJ 08625-0389 Tel: (609) 292-2305 Fax: (609) 695-1174. You file your federal, state, and city tax returns on the lower reported wage amount. Some states will calculate the tax of part-year residents differently, for example, by either taxing the income explicitly earned in the state, or by taxing a fraction of your total annual income based on the amount of time you lived in the state. to receive guidance from our tax experts and community. In some cases the different amounts are correct. `M?C}:}]B $mK6_"mTH /Lvfb-*&>Bvv/+*,j#\z`X[ge p$!Uq-(cg6__'96UVjk.n`gB%5;a[ ) There are no income limits for Medicare tax, so all covered wages are subject to Medicare tax. It's also higher than box 16, my state wages. 1 0 obj See "Other Taxes" in teh Form 1040 instructions. That overlaps on all reports (NY, NJ, federal). W-2 Wage and Tax Statement Explained - OPA - New York City x]s(vl tM:6e&ssmJ9x(rwoW7f}w~Vkd%3n%[wgg}8? Note: Do not make an entry in State Wages, if Different under the State and Local section. Connect and share knowledge within a single location that is structured and easy to search. Yeah, no again. deductible as part of the deduction for state and local income taxes on For example, beginning May 1, a buyer with a good credit score of 750 who puts down 25% on a $400,000 home would now pay 0.375% in fees on a 30-year loan, or $1,125, compared to 0.250%, or $750 . {`-o p{~& &+KjSYe?T e* Qr2? >> The best answers are voted up and rise to the top, Not the answer you're looking for? I'll definitely reach out to my employer and check the city tax website - that's something I hadn't thought about. Why are my federal and state W-2s different? - nj.com Welcome Katelynne, who is here to share some quick tips to help you out If you have a client that has employees that are setup in multiple states or localities, the program will combine the state and local wages on the W3. If you have one or more items with the wrong tax-ability, though, then it gets more difficult as the paychecks were actually calculated incorrectly and adjustments have to be entered to make the data right. Here's how: Once everything is all set, go ahead andsubmit your W-2 formsto the federal and state agencies. If no box 19 tax then all boxes 18-20 should be blank. This income, covered by a tax treaty is often reported on 1042-S form and the rest of the income is reported as federal wages in box 1. /Parent 2 0 R The poster said box 18 *local* wages. You have clicked a link to a site outside of the TurboTax Community. Hand off your taxes, get expert help, or do it yourself. The amount reported with code DD is not taxable. /Contents 4 0 R In this guide, were going to outline how you can enter your payment and tax details by completing Step 3 of the Sprintax tax prep process and what to do if you receive an error alert relating to your federal and state income. For more information on how W-3 form populates, see these helpful links: In case you'd want to print your W-3 form, here's an article for your guide:Print W-2 and W-3 forms. Some employees may see a difference between Box 1 Federal Wages and Box 16 State Wages due to the value of certain pre-tax transportation benefits. Get answers to more of your W-2 questions. Your Form W-2 must reflect wages paid during the calendar year. For this case, an entry in (16) Stage wages, if different will usually cause an adjustment on the state return. Changing the type on the item will then fix the everything. Your situation is a normal one. The "local wages" box indicates what wages are taxable for the locality indicated, according to your employer. Why do I owe federal tax on my 1040NR tax return? Federal minimum wage overrides state if . >> What does your W2 say for "Local Wages" ? : r/tax - Reddit of taxable wages earned in that state. In order to prepare your tax return, you will need to have your income documents close at hand. Take care, and I wish you continued success, @lauralulu1. Lets look at some common payroll situations and examples that can affect these boxes. If you find that after making these adjustments to your Gross Pay YTD per your final pay stub, the result does not match Box 1 Federal Wages and Box 16 State Wages on your W-2, call Central Payroll, 617-495-8500, option 4, for assistance. 6wB Payroll receives many questions about the W-2. You should replicate the information that is on your income document (W-2, 1042-S or 1099, etc) into the relevant fields on the Sprintax site. Lets look at an example of an employee who used the company car for personal reasons. 2. More common is that one or more of your defined benefits, like a 401k or pension plan or similar, is not set up properly: - If it is set up as a 401k (for example) but does not impact taxes properly, it will still impact box 1 (reduce it) but not the state tax, since it didn't impact that tax's Wage Base. You are correct, most local jurisdictions stop at the amount in box 5. Real experts - to help or even do your taxes for you. "~/ 3Y/CiPB1Zi\))XqB Scroll down to the State and Local section. M~;KFc%YU%oFxjsO#::>9q5LGTXs 57`?Wp. They are separated out in box 3 and box 7 for Social Security. Your year end pay stub may be a quick place to identify it. I just want to ask, since I don't know what to do yesterday about my 2 local disk partition, I decided to re-install the OS, and delete all the local partition that I have. So, to make a long story Dear All, /StructParents 0 What could be included in Box 18 that isn't in the others? What positional accuracy (ie, arc seconds) is necessary to view Saturn, Uranus, beyond? 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. I'm sure now you're thinking, "Awesome! 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. Prevailing Wage Rates. We are actively and continuously working to increase the accessibility and usability of our websites and digital content. How Minimum Wage Works: Federal & State - Debt.org <> Enter the state withholding amount in the Amount column next to the applicable. The description is a memo only, or you can print it with the return as a Code Note by setting the Print As option to "Statement" or "Diagnostic.". File a complaint, make . Can I deduct both ways? You can contact Sprintax Live chat to help you with the tax preparation process.*. There's some tax free employer benefits that are not subject to federal and state tax, that the locals do tax. Spicemas Launch 28th April, 2023 - Facebook Note: The description does not transfer to the return. I'm always ready to help. If you live and/or work outside of California and withholding was required for that state, the corresponding state code and identification number will be listed as well.
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