We are not sure if you are referring to the employee retention credit under the CARES Act and certain sections of the Internal Revenue Code. This credit allowed employers to obtain a credit against “applicable employment taxes” paid on behalf of their employees. However, whether this relates to the employee retention credit or some other credit which is non-taxable to you, your W-2 should accurately reflect the wages you received in 2021, and the withholding you paid in 2021. Were the non-taxable earnings you reference added to your wages in Box 1? If not, in what box on the W-2 have these non-taxable earnings been entered?
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