rick++ wrote:

- quote -

Hmmm. why 16.13?

I would divide BY .153

ChEAr$,
Harlan Lunsford, EA n LA
29 mar 2005

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You could double check this by multiplying the social
security deduction times 16.13 . This is the qualified part
of the salary. You'll find this probably includes the 401K
deduction and many of the pre-tax benefits deductions.

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"rayb" <rayb1[at]metrocast.net> wrote:

- quote -

Box 1 of your Form W-2 is supposed to reflect your taxable
wages, which often is less than what you "actually made."
Boxes 3 and 5 reflect your social security and medicare
wages respectively. Most of the time, the difference
between your taxable wages (in box 1) and your social
security wages (in box 3) is the amount of your pay that you
deferred into your 401(k) plan. The amount you designated
to go into your cafeterian plan is not subject either to
income or social security/medicare tax. If it shows up on
your Form W-2 at all it's probably as an information item in
Box 14.

Form W-2's primary purpose is to report your taxable wages
to IRS and the Social Security Administration (SSA), and
secondarliy, to furnish those amounts to yourself so that
you can file a correct tax return. It sounds to me like
your Form W-2 correctly reports these amounts.

If you're looking for a document that reports your gross
earnings, look at your leave and earnings statement, or
similarly named statement, that your employer furnishes you
at the end of each pay period.

Frederick Lorca

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The Payroll person is correct. If you wish to know how much
you really grossed, then just add box 1 and box 14. This
total amount should be in box 3 and box 5, because it is not
deductable from Social Security or Medicare. The amounts
are not included in box 1 because they are not taxable at
this time.

Missy Doyle

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"rayb" <rayb1[at]metrocast.net> wrote:

- quote -

Look at the box for wages included for the "medicare " tax .

PeteC

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rayb <rayb1[at]metrocast.net> wrote:

- quote -

If you don't see this in box 14, just don't worry about it.

And if you do see it in box 14, don't worry about it.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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rayb <rayb1[at]metrocast.net> wrote:

- quote -

This is normal. The W-2 is not a statement of your
earnings, it's a statement of your *taxable* earnings. If
the W-2 included your nontaxable earnings, there would have
to be a line on the 1040 where you deducted all those
pre-tax contributions. Rather than do it on the 1040,
they're just excluded from the W-2 in the first place.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

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Rayb wrote:

- quote -

There is no box on a W-2 that reflects "gross earnings." Box
1 reflects your taxable gross earnings. Any amount you
earned that was not subject to income tax would be excluded.
With some exceptions, it is the amount in Box 3 that
reflects your gross pay.

--
Alan
http://taxtopics.net

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The "payroll girl" is doing it right. The gross on your W-2
is the taxable gross. The wages that you report on your tax
return have to match the W-2. So if the W-2 included your
medical plan premiums and 401(k) contributions, you would
end up paying tax on them.

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rayb1[at]metrocast.net (rayb) wrote:

- quote -

The provision for "deferred-tax" programs such as the 401k
and 403b "retirement savings" plans, have indeed been around
for many years, and are extremely common. Businesses prefer
them -- since they provide a mechancism for extending
pension benefits without the extreme problems associated
with the old "defined benefit" plans ("How on earth can you
afford to cope with inflation and handle the
'unfunded-liability' issue?").

The "cafeteria" plans are relatively recent, but widely used
and perfectly legal, under current tax law. So you have
been receiving the fruits of "tax-favored" benefits offered
by your company. Enjoy and appreciate them -- for who knows
how long they can remain?

Btw, if you look closely at your W-2, you should find that
your "Gross Pay" is reflected in the basis from which your
Social Security and Medicare contributions were calculated:
Check boxes 3, 4, 5 and 6.

Bill

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"rayb" <rayb1[at]metrocast.net> wrote

- quote -

It sounds like they are doing things correctly.

- quote -

Happens in so many families. ;-)

- quote -

There are lots of non-taxable benefits (employer provided
health benefits, employer pension matching, etc) that never
make it to the W-2 that are, in fact, part of your
compensation package. Don't worry about it.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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I just noticed that my w2 gross earnings do not include any monies that
went into what the payroll girl calls a cafiteria plan. It is for any
medical expenses I encure. My Gross also does not include monies paid to
my 401k or my medical insurance.
It seems to me that all these monies should be included in my grose
pay even if it was not taxable.
She says she has asked our acountant about it , at my request, and he
says she is doing it right.
I never noticed it as I just brought the envolope home and handed it
off to the wife. So for the last 5 or six years of w2's that I have do
not reflect how much money I actually made.

Any body got any thoughts on this
RAy

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