W-2 vs. pay stub?

Question

Is this statement correct? Pay stub year end totals should all be the same as reported on your W-2.

If your pay stub year end wages are the same as reported on your W-2 your FICA should also be the same on both documents?

Answer 1

Paystub year end totals should be same as reported W-2, but pay stub year end wages don't necessarily show FICA wages, so they may be different. FICA and Medicare Wages don't have to match federal or state wages. You could even have the case where Federal wages, social security wages, medicare wages, and state wages are all different numbers on your W-2.

Answer 2

Almost everyone has replied with answers about timing differences. If the preparer of the payroll uses the check date as the date of the final stub, then this should NEVER be the cause of a disparity.

There are many common reasons that a w-2 might not match year end paystub totals. Hee are just a few.

1. If your company provides Group term life insurance in an amount greater than $50000, the prmium for the excess over $50k will be added into box 1 of form W-2, and the amount will show also in box 12 with code C.

2. If you made contributions to a 401k, 403b, or Simple IRA plan, your taxable income will be reduced by the amount of the contribution, and the amount will show in box 12 of W-3 with code, D, E, or S respectively.

3. If you paid for child care benefits thru your employer your box 1 on form W-2 will be reduced by that amount, which will also show on box 10.

4. If your company has a cafeteria plan and you paid for benefits thru the plan, your taxable gross shown in box 1 of W-2 will be reduced by that amount. Also , boxes 3 & 5 , your Soc Sec & Medicare wage base amounts will be reduced. This means that you are also saving, in addition to ijcome tax, Soc Sec & Medicare taxes. Pretty good deal, Huh?

5. If you exercised stock options granted by your employer, a portion of the stock purchase price will be added to box 1 of Form W-2, with the am0ount shown in box 12 with code V.

There are others, but these are the most common ones.

As far as FICA (Soc Sec & MEdicare) exampls 2 and 3 above always RESULT in a different taxable gross (box1) and Fica wage bases (boxes 3 & 5)

Answer 3

That sounds right for your last pay stub of the year. If they are different, ask your payroll department why.

Income is reported in the year paid, which isn't necessarily the year worked - there are often a few days from the previous year that are paid in the current year, but those should be included both in your YTD paystub amounts and on your W-2.

Answer 4

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The difference is that filing without a Form W-2 in hand is illegal. Idiots try it every year and get caught out every year when the W-2 arrives and the numbers are different, forcing them to file an amended return to correct their mistake. I normally charge $50 for an amended return if a non-client gets a corrected W-2 and needs to amend. But if they jumped the gun and e-filed without a W-2, my price goes up to $150. (If I prepared the original return, I do simple amended returns for free.) No tax pro or tax prep mill will prepare a tax return using your final pay stub until late in February or early March. That is only allowed if your employer has failed to provide a W-2 by Feb 15th, you have reported it to the IRS, and the IRS has given you permission to use Form 4852 to file your return. When you use Form 4852 you must file a paper return by mail and should be prepared for an extended delay (to August or September and maybe later) in getting your refund while the IRS attempts to verify your information. None of the tax prep mills that offer the rip-off RALs will advance a RAL until you actually file your return. Your return MUST be e-filed to qualify for the RAL and you MUST have your W-2 in hand to e-file a return.

Answer 5

That is correct. Your pay stubs for the year should total what is reported on the last paystub of the year that summarizes the year. The W2 you'll get later on should show the exact same information. If not the employer owes you (and the IRS) an explanation.

Answer 6

your very last pay stub should match your w-2 in almost all circumstances. sometimes the 'last' pay stub is really for work in yr 1 paid in yr 2 - look carefully.

Answer 7

Most of the time they should be the same. I have seen a number of circumstances where they are slightly different due to the accounting systems or payments made after the regular pay period like a bonus or commission.