why are my state wages and local wages different

Hence your employee's total yearly wages show twice on their W-2 state section (even if you've already set up the other/incorrect state to do not withhold), I encourage you to reach out to our Payroll Care team. Pre-tax insurance plans don't report in Boxes 12 or 14 on the W-2. You have clicked a link to a site outside of the TurboTax Community. employer in multiple state, there may be multiple lines of information. LIVE: New Orleans Saints 2023 NFL Draft Recap Show - Facebook How do I clear and start over in TurboTax Onli Premier investment & rental property taxes. Get Support. A boy can regenerate, so demons eat him for years. Also, you may want to check out these articles as your reference to learn some payroll situations that can affect W-2 boxes and answer your most commonly asked questions about the form using QBOP: If you have other payroll and W-2 concerns in QBOP, please don't hesitate to comment below. 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. What positional accuracy (ie, arc seconds) is necessary to view Saturn, Uranus, beyond? More common is that one or more of your defined benefits, like a 401k or pension plan or similar, is not set up properly: The most common questions relate to why W-2 Wages differ from your final pay stub for the year, and why Federal and State Wages per your W-2 differ from Social Security and Medicare Wages per the W-2. Thought that would take care of the idiocy of a system that doesn't actually allow it's operator to make any kind of executive decisions.But nope, it didn't fix it. So QBO payroll decides that I need to report him to both states. Site design / logo 2023 Stack Exchange Inc; user contributions licensed under CC BY-SA. I worked as nurse in an Adult day care( LLC). This amount is laso included in box 1. Tools and Resources. Use your last pay stub for the year to calculate the taxable wages in boxes 1 and 16 in your W-2. Changing the type on the item will then fix the everything. M~;KFc%YU%oFxjsO#::>9q5LGTXs 57`?Wp. Lets look at an example of an employee who used the company car for personal reasons. Please check if your details are correct. Complaints, Appeals, and Investigations. Box 16 reports the total amount 401k, 403b, 457b, etc. @Staticcreature. >> 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). For example, here's a list from my city's web site: Wages, salaries and other compensationBonuses, stipends, and tip incomeCommissions, fees and other earned incomeSick pay (including third party sick pay)Employer supplemental unemployment benefits (SUB pay)Strike payVacation payEmployee contributions to retirement plans & tax deferred annuity plans (including Sec. What does your W2 say for "Local Wages" ? : r/tax - Reddit NJ Wage and Hour Division and Contract Compliance - Online Services The problem would seem to be that you earned $17,280 (henceforth $17k) while working in New Jersey but residing in New York. )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. I'm always here to help. "~/ 3Y/CiPB1Zi\))XqB Ideally, we're unable to directly edit W-2s to correct them since the info indicated is based on your payroll info and employee setup. Many do. W-2 Wage and Tax Statement Explained - OPA - New York City If you are working in an area that has these taxes, it is common for the amount in Box 18 to match those other boxes you have mentioned. Code W: Employer Contributions (including amounts the employee lected to contribute using a section 125 (cafeteria plan) to your health savings account. 17: State income tax: The total state income taxes that were withheld from your compensation. Note: As long as the state amount isn't greater than the Federal amount, don't make an entry in. Sometimes Box 1 is lower, but not always. By clicking "Continue", you will leave the community and be taken to that site instead. Lets look at an example of a Visa employee who is exempt from Social Security and Medicare, but is subject to Federal Income Tax. 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. The "local wages" box indicates what wages are taxable for the locality indicated, according to your employer. 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. Pre-tax insurance plans decrease the amounts in Boxes 1, 3, and 5 because they aren't subject to Federal Withholding, Social Security, or Medicare. Hi, QuickBooks Community! By clicking "Continue", you will leave the Community and be taken to that site instead. t^hJ.L/=ZHj.od!EQpch?=LlN@+1sJ^,'OB 'tLt Why having good credit could cost you more on a home mortgage That overlaps on all reports (NY, NJ, federal). https://www.askmehelpdesk.com/showthread.php?t=17149, Send a private message to AtlantaTaxExpert. 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. of taxable wages earned in that state. Can my creature spell be countered if I cast a split second spell after it? Does Ohio also allow these amounts to be excluded? The best answers are voted up and rise to the top, Not the answer you're looking for? is there such a thing as "right to be heard"? Hand off your taxes, get expert help, or do it yourself.

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