kcrook
New Member

Get your taxes done using TurboTax

Please update your help section to include instructions for tipped workers. Tipped workers need to add box 3 (Social Security Wages) and box 7 (Social Security Tips) to equal their total compensation. Or rather what is in box 1 (Total wages). I've gotten multiple calls from our employees saying we took too much in Social Security tax, when in reality it's your software that doesn't add the correct amount that is then taxed by 6.2%. Your software then informs them that they are owed a refund by the company and need to be issued a corrected W2.  When they call to complain I have to explain to them that their math is incorrect. People do not like being told their math is incorrect.  We have over 40,000 employees. I've had to explain it a lot. Please do something to correct this issue as I'm sure our associates aren't the only ones it impacts. 

Here is an example:

If you take Box 3 + Box 7 = Total wages = box 1

Box 4 = SS Tax is 6.2% of boxes 3 and 7 added or box 1.

Example of a W2:

Box 3 = $11452.99 + Box 7 = $2269.18 =  box 1 = $13722.17

Box 4 = $13722.17 X 6.2% = $850.76

Your amount in Box 4 is $850.76 The correct amount was taken out for Social Security Tax