- I have a small business with only one employee, and I contribute matching funds to his Simple IRA plan.
- On the W3 form, box 1 shows the employees wages, box 3 shows social security wages, box 5 shows Medicare wages, and box 12 show Deferred Compensation to the employees SIMPLE IRA.
Box 1 plus Box 12 = the amounts in bothbox 3. And 5.
My question is: when I enter gross wages for the employee ,(that will appear on line 26 of the schedule C),”is that supposed to be the number that is in box 1 of the W3, or should that amount also include the deferred compensation in box 12, because that was part of the wages that I paid him?
I put the employers (my) matching contribution in line 19.
