How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Wendy Reed Your Own Question

Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience:  15+ years tax preparation and tax advice.
753989
Type Your Tax Question Here...
Wendy Reed is online now
A new question is answered every 9 seconds

We are trying to calculate my wifes W2 versus final paycheck

Customer Question

We are trying to calculate my wifes W2 versus final paycheck and there are some discrepancies.

Final check YTD wages is 40352.51 Box 1 of W2 is 42580.99

We cannot figure out why this is so. Now her total yearly income, including her bonuses which are taxed at 33% before she sees them is 43,602. So she had 3500 worth of bonuses.

My understanding is, or how it works at my company is like on my final check which matches perfectly with the W2.

On my last check year to date Gross pay minus my bonuses (taxed at 33%) is what ended up in box 1 or the W2. Thank you again for any help you may provide :)
Submitted: 3 years ago.
Category: Tax
Expert:  Wendy Reed replied 3 years ago.

Thank you for giving me the opportunity to assist you. I will give the best answer that I can with the information provided.

 

Hello there,

On the final check, the YTD wages may not include the bonus amount. The bonus may show up on a separate line---or only on the check stub for which it was received.

 

I am guessing that you are rounding off her bonuses to $3500---if her wages plus bonus = $43602. So her total Gross income is $43602. Now, if your wife has any pretax deductions, such as 401k or medical insurance deductions---this could reduce the amount shown in box 1 of the W2. From what you are stating, it appears that Box 1 of the W2 is $1021.01 less than her gross income. If she gets paid biweekly, and approx $39 is deducted each paycheck for medical insurance--this could be why.

 

Please let me know if there are any other deductions shown on her paychecks, what they are, and I could figure out exactly what the discrepancy is. Also, let me know if there are any entries in Box 12 of her W2 and what they are.

 

 

Customer: replied 3 years ago.

Thanks Wendy for your response, let me give you the numbers on the last paycheck and the W2 so you can try and make sense of it :)

 

Last paycheck:

 

Bi weekly pay- Last paycheck of the year 12/31

 

Earnings 2083.33 YTD: 40352.51

 

Bonus. 0.00 YTD:3250.00

 

Total: 2083.33 YTD: 43602.51

 

SS: 125.76 YTD: 2638.57

Mcare: 29.41 YTD: 617.08

401k: 0.00 YTD: 125.00

Flex health: 0.00 YTD 770.00

Fed WH: 195.90 YTD: 4631.23

 

on biweekly pay her first check she started in march was march 31st.

 

W2 info:

 

Box

1- 42580.99

2- 4668.35

3-42705.99

4-2647.77

5-42705.99

6- 619.24

7-blank

8-blank

9-blank

10-0.00

11- blank

12a-D 125.00

 

13. retirment plan box checked

14. Flex health 1045.00

 

15. TX (no state income tax)

16. 43625.99

17.state income tax

 

Hope this helps with the info....

Expert:  Wendy Reed replied 3 years ago.

Hello,

I have some information for you.

 

The total earnings from paycheck are 43602.51. This is $23.48 less than what is reported as the state earnings in box 16. The only thing that I know of that could cause this is if there is "imputed income" from some benefit, such as group term life insurance, where an amount is added to the gross earnings for tax purposes. However, this would show up in Box 12, and it is not there, so she should ask the employer or human resource department for the discrepancy between paycheck gross income, and state wages reported in Box 16 of the W2. (discrepancy $23.48)

 

For the difference in Box 1---You need to subtract $125.00 for 401k contributions--- and $1045.00 for the Flex health. Both of these benefits are subtracted from federal earnings to come up with Federal taxable income. So Box 16 minus 1045 and 125 equals the amount in Box 1. The only discrepancy that she should ask her employer about is the $23.48 that is greater in Box 16 of the W2 than what is shown as gross earnings on the paycheck.

 

Let me know if you need additional information.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
Wendy Reed
Wendy Reed
Tax Professional
3346 Satisfied Customers
15+ years tax preparation and tax advice.