W2 Frequently Asked Questions

Why don’t my wages, tips and other compensation in Box 1 match the year to date gross on my pay stub?

The wages in box 1 of your W2 reflect taxable wages only. This amount does not include tax deferred deductions (i.e. retirement, 403B annuities and 457 deferred compensation) or pre-tax deductions (ie. Medical insurance and parking). Box 1 also includes taxable reimbursements such as same day meal reimbursements, taxable moving expenses and taxable fringes that are not reflected in your payroll gross.

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Where can I see the tax-deferred or pre-tax deductions?

Box 14 shows retirement, Choices and parking deductions. Other taxdeferred deductions are reflected in Box 12. Dependent care deductions are shown in Box 10.

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Why don’t my wages in Box 1 match the Social Security wages in Box 3?

Pre-tax deductions are exempt from FICA (Social Security and Medicare), however tax-deferred deductions are subject to FICA tax. The amount in Box 3 includes retirement and annuity deductions. The amount in Box 1 does not included retirement and other qualified deferred compensation.

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You were eligible for a FICA exemption due to tax treaty or you were a student enrolled in and attending at least 6 credits of courses during any given pay period in the year.

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I want to adjust my withholding for next year what do I do?

You need to fill out a new W-4 and submit it to Human Resources/Personnel & Payroll. An online version of the form can be filled in and printed from your PayNortheast Employee Portal. You can sign in to your employee portal by visiting www.paynortheast.com/login

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How do I know what exemptions to claim?

Increasing the number of exemptions decreases the amount of withholding. Those with a Married status withhold at a lesser rate than those with a Single status. HR/P&P cannot tell you what exemptions to claim on your form W-4. T he IRS has a calculator that can help you determine the correct number of exemptions at the following url: http://www.irs.gov/individuals/article/0,,id=96196,00.html If you need further help please download publication 919 from the IRS website or visit your local tax accountant.

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Why don't I see the cost of my health coverage in Box 12 on my W2? 

According to the most recent IRS guidance, large employers who issue 250 or more W-2s for a calendar year are required to report the value of employer-sponsored health insurance. The reporting is not required for employers who issue fewer than 250 W-2s. In fact, if you’re a small employer, you’ve qualified for transition relief from this reporting requirement from tax year 2012 to date, until the IRS issues new guidance.