One employee: W-2 box 18 has two wages listed, same amount, box 19 has the tax amount due to two separate agencies. The amounts in box 18 are added together, increasing (doubling) the wage amount on the W-3. Is this correct? We normally don't have to deal with School Districts on top of our local city tax which is what this is. Doubling the amount on the W-3 doesn't seem correct.
Yes, Vinrolls2020 it is correct. The figures in box 18 are summed, which accurately doubles the wage amount on the W-3 form. Let me provide you with essential information on how these amounts are reported on the W-3.
W-2 Box 18 reports local wages, which may include amounts subject to local taxes from different jurisdictions. If two agencies are involved, the same wage could be reported twice.
On the other hand, W-3 form summarizes all submitted W-2 forms, combining amounts from Box 18. Therefore, if there are identical wages in Box 18, they may be added together, potentially resulting in a doubled amount on the W-3.
However, since you mentioned that dealing with school districts in addition to local city taxes is not typical for your organization, it is crucial to verify whether both wage amounts reported in box 18 are valid and necessary.
In summary, a doubled amount on the W-3 form due to identical entries in box 18 may occur if both agencies have legitimately reported wages. It's important to check your payroll records and confirm with the relevant authorities to address any discrepancies and avoid over-reporting.
I'm adding this resource for future reference if ever you want to do you, or your employee finds a mistake on their W-2 or your W-3: Fix an incorrect W-2 and W-3.
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