why are my state wages and local wages different

How Minimum Wage Works: Federal & State - Debt.org I was wondering if you could tell me if you think 55000 a year cdn is a good number or if its too low? Your employer pays an additional 1.45%, the employer part of the Medicare tax. Wage & Hour and Contract Compliance | Frequently Asked Questions (FAQs) The W-3 form is the transmittal of Wage and Tax Statement, which summarizes the W-2 employee information in a given year about: As for the Box 16 on your W-3, it is the total state/local wages and income tax shown in the corresponding boxes on the Forms W-2 included. The Social Security Wage Base for 2019 was $132,900. A state doesn't have to have a minimum wage law, but as of 2021, 29 states and Washington, D.C., did. If you are working in an area that has these taxes, it is common for the amount in Box 18 to match those other boxes you have mentioned. To learn more about how Quickbooks defined each box and field on the W2/W3 Form, I recommend checking out these articles: I also recommend checking out the topics from this link for additional tips when preparing your year-end forms and taxes:Year-end checklist for QuickBooks Desktop Payroll. By clicking Accept all cookies, you agree Stack Exchange can store cookies on your device and disclose information in accordance with our Cookie Policy. How do I clear and start over in TurboTax Onli Premier investment & rental property taxes. The second reason for this difference might be the fact that your wages are exempt from the tax treaty between your country and the USA. About six-in-ten adults (62%), including majorities in nearly every demographic group, support increasing the minimum wage to $15 an hour. 3 0 obj It is subject to and additional 20% tax plus interest. Wage and Hour Division and Contract Compliance PO Box 389 Trenton NJ 08625-0389 Tel: (609) 292-2305 Fax: (609) 695-1174. Box 18 being usually lower. I'd say I'd be surprised if the locality didn't conform to the state, but there's not much that surprises me with regards to tax codes these days Could you expand on this a bit? When filing the state tax form, do we need to add both state tax (W2 - Box 17) and local tax (W2 - Box 19) for reporting the total tax withheld by the state OR the amount in Box 17 suffices? Most Americans favor raising the federal minimum wage, which has been $7.25 an hour since 2009. /XObject <> The withholdings are correct! Go to Screen 10, Wages, Salaries, Tips. The easiest issue is if there is an item, usually a deduction, that has the correct tax-ability but the wrong tax tracking type. Connect and share knowledge within a single location that is structured and easy to search. Many do. entertainment, news presenter | 4.8K views, 28 likes, 13 loves, 80 comments, 2 shares, Facebook Watch Videos from GBN Grenada Broadcasting Network: GBN News 28th April 2023 Anchor: Kenroy Baptiste. Here's how: Once everything is all set, go ahead andsubmit your W-2 formsto the federal and state agencies. If so, that explains the different figures in Boxes 16 and 18. Your situation is a normal one. The difference can be significant if you get a substantial raise or reduction. Hello, Some states and localities do NOT recognize deductions which reduce the taxable salary, such as 401K or 403B contributions. Hello there, @lauralulu1. When I do not. Which explains why the state wages on my W3 were higher than the federal wages. PDF Which wage figure do I use from my W-2 to file my local return? paychecks for the wages reported in Box 16. I would have expected these two numbers to match since I lived in this city for the exact same amount of time as I lived in this state. Understanding Your W-2 | Controller's Office Why don't my state and local wages match on my W-2? Have you called your employer to find out the source of the different? Beneath that you would see the next state listed in Box 15 followed by the wage earned in that state in Box 16. It is not common to have any local tax at all - only a very few states even have a local tax. State Taxable Wage Adjustments to Gross Pay YTD: The resulting amounts should equal Box 1 Federal Wages and Box 16 State Wages on your W-2. Form W-2 Box 1: Guide for Navigating Through Confusing Discrepancies "~/ 3Y/CiPB1Zi\))XqB . We'll help you get started or pick up where you left off. PDF New York State Department of Taxation and Finance Office of Tax Policy That would get you the right answer for you, as opposed to us just guessing. Scroll down to the State and Local section. (Ctrl+W if multi-state) enter, 12,000 AR16,000 KY2,000 US.The total will show 30,000.Results: 30,000 will flow to Form 1040, line 7, 12,000 will flow to Arkansas, and 16,000 will flow to KentuckyIn the field, (16) State wages, if different enter31,000 OHResults: 31,000 will flow to the Ohio return. Thanks for joining the thread. Right away I called AVIS and told them what happened, they said bring the car back. What You Need To Know About Your Form W-2 This Tax Season - Forbes 401(k) is not subject to Federal Income Tax, so it's not included in Box 1 wages. Will that have a different effect on my Local taxes owed? Improving the copy in the close modal and post notices - 2023 edition, New blog post from our CEO Prashanth: Community is the future of AI, Use of chatGPT and other AI generators is banned, IRS letter about 401(k) rollover not shown on return. Same occupation, different pay: How wages vary - Bureau of Labor Statistics In Box 16 most states report the amount of wage that was earned in that state. Why are the State and/or Local Wages Doubling on the W-3? - Thomson Reuters In some cases the different amounts are correct. Otherwise you'll have to ask your employer. The most common questions relate to why W-2 Wages differ from your final pay stub for the year, and why Federal and State Wages per your W-2 differ from Social Security and Medicare Wages per the W-2. GagaZA66N0tL-ESZ5wlAm/,M;${Udp~ip :=Ie0}s6O{AB,yC@t3Lxd| v;2iO)x@KmP9(_gw-V_\lZ4h\BGU^W[bK7Pp"|oGtpj#":uInL5.@mZJ'(;Y\O f}qo9 Was just running my W2s and (after much searching, my W3, because again, QBO doesn't think I actually need to see my W3) and saw on my W3 that the state and federal income amounts were different. >> Can I deduct both ways? NG.A7 QozUKsPV,BMVK ._MUPRUdO9"{H8[?va%Sp&{Bf_@U K9Bj D;$/>VFNGs:%hS3=sZfyXC:ARE &N$9! Box 12C: Group term life (GTL)Box 12E: 403B TDA deductionsBox 12G: 457 Plan deductions, Box 12M: Uncollected Social Security Tax on taxable GTL, Box 12N: Uncollected Medicare tax on taxable GTLBox 12P: Excludable moving expensesBox 12T: Adoption benefits, Box 12DD: Cost of employer sponsored Health InsuranceBox 12W: Employer contributions and employee elected contributions to HSA, Corporate CardEmployment Tax IssuesGLACIERPeoplesoftPCardTravel ReimbursementUniversity Tax Issues, 1033 Mass Avenue 2nd Floor Cambridge, MA 02138, Copyright 2023 The President and Fellows of Harvard College, Office of Financial Strategy and Planning.