<brew_one[at]e-mailanywhere.com> wrote:

- quote -

With an employer sponsored SIMPLE plan, Gross Income in Box
1 is reduced for the SIMPLE Contribution. So if an employee
earned $10,000 and contributed $6,000 to a SIMPLE - Box 1
Taxable Wages = $4,000; Box 3 & 5 Social Security Wages and
Medicare Wages = $10,000.

I would suggest you refer your client - NOT the payroll
clerk - to IRS Circular E and explain how the W-2 is
supposed to be.

Gene E. Utterback, EA, RFC

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have a client whose payroll clerk insists on adding the 125
plan expenses to the amount in Box 3 of the W-2, then
subtracting the amount he contributed to his retirement plan
to arrive at the amount reported in Box 1!!!

was something along the lines of:

Box 1 26000
Box 3 26005
Box 12 660
Box 14 655

Leaving aside the cuckoo calculation, I don't know if I've
seen a Code S contribution on a W-2 before; is there ANY
possibility that amounts contributed to an employer-provided
Simple plan should show up in Box 1 and then be taken as a
deduction? Our software will only allow that deduction to
flow from an entry made on a Schedule C.

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