W-2 Box 3: Social Security wages Box 3 shows an employee’s total wages subject to Social Security tax. Do not include the amount of pre-tax deductions that are exempt from Social Security tax in Box 3. The number in Box 3 should not be higher than the Social Security wage base, whi...
Boxes A-F:The lettered boxes on a W-2 include the name and address of the employee and employer, Social Security number, and employer's EIN and state ID number. Boxes 1-2:Box 1 shows taxable income, including wages, salary, tips, and bonuses, while Box 2 shows how much federal incom...
Box 3Social Security wagesTaken from the FICA Soc Sec Wages Year To Date field in the Employee Summary window. The system checks the maximum Social Security wage limit at the time the Year-End Wage File is created to be sure it hasn’t been exceeded. If the maximum wage limit has been...
A W-2 tax form shows important information about the income you’ve earned from your employer, amount of taxes withheld from your paycheck, benefits provided and other information for the year. You use this form to file your federal and state taxes.
Payroll taxes and Social Security contributions can be a confusing topic, but it’s important for businesses to understand the differences between W2 employees and independent contractors when it comes to these areas. When paying wages to W2 employees, employers are often responsible for withholding ...
Box 3: Shows your total wages that are taxed for Social Security. Box 4: Shows the total Social Security taxes withheld from your pay for the year. Unlike federal income taxes, Social Security taxes are calculated based on a flat rate of 6.2% for employees. Box 5: Indicates all your wag...
Box 3 — Social Security Wages Include the total wages subject to Social Security tax. There’s a chance this number will be different from box 1. The Social Security Administration doesn’t require employees to pay Social Security taxes on wages above $168,600 in 2025. ...
Boxes 17 and 19 will report the state and local income taxes that your employer must also withhold from your wages. Although you need these amounts to prepare your state tax return, the payments are also deductible on your federal tax return as part of your itemized deductions....
The W-2 contains information about gross wages paid to an employee, as well as federal income tax, Social Security, and Medicare withholdings. It also includes information about state income tax withholding and employee benefits. What's a 1099 form? Like a W-2, a 1099 form lists all the...
Manage money Get paid and manage your money with a business bank account. See plans Explore money features View all products Important offers, pricing details and disclaimers QuickBooks and Intuit are a technology company, not a bank. Banking services provided by Green Dot Bank, Member FDIC. ...