Why Don’t the Numbers on W-2s Match the Payroll Reports?
Remember, box 1 on the W2 is for “taxable wages,” not “gross wages.” If you have set up “pre-tax” deductions such as medical or 401(k), the employee’s taxable wages are “reduced” by the amount of these deductions. In other words, their full gross wages are not reported on their W-2 by the amount of the medical or 401(k) deduction.
If you have made any changes to your payroll since you created your W-2s, be sure to download the latest version by going to Reports > Payroll Tax Reports > W-2 Forms > and click “Update W-2s.”
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