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philkusiak
January 2, 2022
Question

Should w-2 match adjusted gross pay?

  • January 2, 2022
  • 1 reply
  • 0 views
Should W-2 box 1 be equal to annual adjusted gross pay?

1 reply

AlcaeusF
AlcaeusF
January 2, 2022

Hello @philkusiak,

 

Thank you for reaching out to us about Form W-2. I'm here to share some details about the annual form in QuickBooks Online.

 

The Box 1 reports wages, tips, and other compensation. This amount is everything you paid your employees during the tax year before payroll deductions.

 

To answer your question, yes, it should match the gross pay. The system should show the correct amount based on the employee paychecks in QuickBooks.

 

Please note that 401(k) is not subject to Federal Income Tax, so it’s not included in Box 1 wages. There are times that the wage amounts will be different on the form depending on the payroll situation.

 

Check out this link to know more about the things that affect the amounts in Boxes 1, 3, and 5 on your employees’ W-2: Understand why the wage amounts are different on your employee's W-2.

 

For more information about the form, as well as how to print them for your employees, I recommend the following article: File your W-2 forms.

 

Keep us posted if you have further questions about the payroll forms or the specific boxes in Form W2. Have a great day.

D
Darche Drywall
January 15, 2022

How do I find out why gross pay is not matching wages on w-2?  

 

J
JonpriL
January 15, 2022

Hi @Darche Drywall, I'll surely help find out why these details may not match.

 

Let’s look at some common payroll situations and examples that can affect the difference between gross pay wages and W2 information. The wages detail on W2 forms is affected by the following information below:

 

  • Retirement deduction like a 401(k) or IRA
  • Group Term Life Insurance (GTLI)
  • A taxable fringe benefit like Personal Use of Company Car (PUCC)
  • A taxable company contribution like a Health Savings Account (HSA)

 

For a detailed discussion, here's an article to read and learn more: Understand Why the Wage Amounts are Different on your Employee's W2.

 

I'm adding this reference for tips and guides to utilize in preparation for the coming year-end: Complete Certain Tasks in QuickBooks to Prepare for the New Fiscal or Calendar Year.

 

Don't hesitate to post a reply below if you have other questions or concerns with taxes and forms. I'm always around and ready to help. Take care and stay safe!

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