What reason would the Gross wages be more than the SS wages, except when the SS limits have been met? Every time I research...it says bc of the SS wage limits...which is very common I know.
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Not an authority for tax purposes but just a glossary of terms used in preparing Forms W-2, so it may give you some questions to ask your client about his benefits: https://www.bamboohr.com/hr-glossary...nce%20premiums -
The most common is health insurance for a 2% S-corp shareholder.
Some other items are in Pub 15 https://www.irs.gov/publications/p15...blink100017777Comment
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I have come across 2 different W-2's. with the gross wages being more than SS and MC. The w-2's were for 3853.00 and the other for 12,475. Neither one has any kind of retirement, or benefits. It has not reached the SS limit...I can find no reason for this???Comment
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Ask your client if they know why.
Look at last pay stub to see if something jumps out.
If neither of those work, have client ask HR department for an explanation.Comment
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Health insurance?Comment
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What about all of the taxable fringe benefits that get added to the W-2 that aren't taxed on a 1099 form - such as advance payments for employee business expenses not on an accountable plan?Uncle Sam, CPA, EA. ARA, NTPI FellowComment
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Were they on active duty in the military? Differential pay is not subject to FICA or FUTA https://www.irs.gov/publications/p52...link1000229094"Dude, you are correct" Rapid RobertComment
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Here in Maine I see it a lot for people who are state employees and who don't contribute to social security at all. Also, I see it often with restaurant servers. Look at the box for social security tips and see if the rest of it is there.Comment
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School teachers in state that opted out of SS, such as CT.Comment
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