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patrick642
Level 1

Anyone seen "wages over limit" on W2? It was in 2019 (I missed it)

It affects my Social Security for that year - that "Wages over limit" was a SIGNIFICANT amount. Do I need to get a tax lawyer to make them figure out what happened?
8 Replies
DawnC
Employee Tax Expert

Anyone seen "wages over limit" on W2? It was in 2019 (I missed it)

You may just need to amend your 2019 tax return, but I need more details about what happened.   Did you receive a letter about the 2019 tax return you filed?   

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patrick642
Level 1

Anyone seen "wages over limit" on W2? It was in 2019 (I missed it)

Hey there.

Yep, needed some assistance on this, let me know what your fee would be.

-- No, did not receive any letter. 

 

What happened was, I received the annual December Social Security Admin letter to check my earnings there.

So, I did. And was hit with a shock. It showed in the social security block I only earned $80K for my 2019 pay.

I went back and pulled out the 2019 W2.

For some reason, I "really" did not pay attention to it - I had a "wages over limit" line with $65,000 in the social security column.

--- My gross that year was $145 K

--- with ~$25 K for 401k

 

I contacted Plus3 (the company I worked for that year) and asked them to check it out. They came back yesterday and said that they could not find any problems on their side - all data was entered correctly.

-- Plus3 also tells me they contacted ADP to dig into it and ADP found no problem either

 

Yet, my Plus3 2018 W2 and 2020 W2 for that company (I resigned from them in Apr 2020) - BOTH do NOT 'wage over limits' and the social security block nearly matches up with the gross pay block for those two years as they should (minus 401k that is).

---- Something is wrong somewhere with Plus3 and/or ADP. This is not something I can fix because I did not change anything for 2019 or revert back to in 2020, to make that line appear on the 2019 W2.

 

Plus3 gave me the number of someone at ADP but I said I was not going to call ADP until I got a tax lawyer, which I may end up doing.  This affects my social security earnings (if we still have it in 10 years or so....).

 

Was that enough or do you need screen shots? 

Thanks,

  Patrick  ([email address removed])

 

patrick642
Level 1

Anyone seen "wages over limit" on W2? It was in 2019 (I missed it)

Oh, and I already bought the 2020 turbotax deluxe... haven't installed it yet.

patrick642
Level 1

Anyone seen "wages over limit" on W2? It was in 2019 (I missed it)

Hello Dawn.

 

Are you researching and plan to come back to me tomorrow or the next day?

 

Thank you.

patrick642
Level 1

Anyone seen "wages over limit" on W2? It was in 2019 (I missed it)

I need ANOTHER tax expert to chime in to see what I can do with this situation.

 

I've no further response from the last 'tax expert' who responded to me a couple of days ago and then ghosted me.

(That is, unless there was a family emergency or death delaying a response.)

 

BillM223
Employee Tax Expert

Anyone seen "wages over limit" on W2? It was in 2019 (I missed it)

I am struggle to imagine why your 2019 W-2 would show $145k in box 1 and $80k in box 3 - did I understand you correctly?

 

There can be a number of differences between the box 1 and box 3 amounts. But in the case of your 401(k) plan, that would not appear in box 1 but does appear in box 3, so box 3 is usually larger than box 1 for people with 401(k) plans.

 

Plus I don't understand why your box 3 amount would be limited to $80k - the wage limit for SS in 2019 was $132,900, which is what you would normally see.

 

May I ask if you were considered a "highly compensated employee" in 2019? See this IRS webpage - did the HR or ADP people say that phrase at any point?

 

And as for being "ghosted", our Community is not set up as a chat room -  instead any agent (or any user for that matter) can see your response and answer. An agent is not notified of your response unless you enter @ and the agent ID (take out the space) somewhere in your answer. Yes, I know that this is not obvious.

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patrick642
Level 1

Anyone seen "wages over limit" on W2? It was in 2019 (I missed it)

@BillM223- thank you for the @ indicator, yes, not obvious - unless one looks at the line below the reply box, even then, that is not well done.

Heh, heh, heh, heh....  Yes - you understand most correctly.

YOU'RE struggling? How do ya think I feel....

I did not get that "wages over limit" in the years prior to 2019 or in 2020. And in 2018 & 2020, I worked for the same company where that blasted line showed up in 2019.

At that company, there are about a dozen who made far more than me and if that had appeared to them, we 'might' already know the answer.

So the answer is no, not a highly compensated person.  HR never stated that as I am sure they would have if it were the case.

 

Yesterday, I got another email from the company that they happened to be talking to ADP and brought up the SS issue again. The ADP person said:

"there are some reports that could be pulled that may give a little more insight, and that she'd send the original rep a note to pull them. Apparently these reports can take up to 48 hours to pull. "

 

But it sounds like, my former company screwed up and DID NOT do proper due diligence in explaining it to ADP in the first place.  I thought this would be an easy fix, something got corrupted either at my former company, at ADP or en route to ADP (electronically).  And comparing my 2018 and 2020 data to the screwed up 2019 W2 would have been an easy task to troubleshoot...

-- Awaiting this to see what happens now at that company.

 

Thanks for that IRS link, that may actually be it. I will attempt to contact SSA again (a VERY painful process during CoViD - being on hold for 20 minutes several times before giving up) - and bring that up to see what they say about it.

 

On the ghosting part, I tried not to be harsh but when I've done technical work with folks from around the country and other parts of the globe - if I reach out to someone (especially folks from a different culture), I follow up - just in case a communique may have been sent but not in the, ahhh, proper manner.

 

Thanks for reaching out Bill.

patrick642
Level 1

Anyone seen "wages over limit" on W2? It was in 2019 (I missed it)

@BillM223@DawnC ---  well, the error seems to have been corrected.

End result - had to reach out to my old company again and get on them for about 3 months.

Each time, they say it is ADP dragging their feet in responding.  

 

  • My old company FINALLY got me a number I could call at ADP to see about straightening it out but the person I talked to still stated "they do not talk to employees" only "employers".
  • Went back to old company, let them know. 
    • They, again, FINALLY got me another number to call - this time, I got to talk to a support rep.
  • The only problem this time, the systems these Support members had access to did not contain my old company (that has been in existence for over 10 years, working through ADP) in their database. 
    • They finally managed to find the old company once I gave them my SSN  BUT it was only partial info.  After talking to their team and supervisor, it turns out, they did NOT have access to all the info they needed to make any changes...

So, went back to old company again - let them know. They told me they were in contact with a better, more responsive ADP rep to help fix this.

They DID FINALLY fix the blasted problem which stemmed from a mistake as it turns out (WHICH I TOLD THEM TO BEGIN WITH).

They and ADP are preparing another W2 for me without the "wages over limit" nonsense. But it would take 4 - 6 weeks...

I still wanted to know what happened to trigger that mistake, and my old company told me, they will come back to me once they get that info from ADP....

  • That was March 26 and I'm getting gray hair while waiting, AGAIN....!!! (Could be CoViD related delays, but I do not know....)

Best part is, either the:

  • old company FINALLY figured out their mistake OR
  • ADP (unlikely) figured out the mistake on their end. 
    • And I can now get the Social Security Admin to correct my data for that year, that is - ONCE I receive the corrected W2 (for which the old company SHOULD be getting that data to the SSA).

Sorry for the rant (not shouting above, just emphasizing) but I severely dislike the run-around in these kinds of scenarios in which I should not have been the one to keep pushing them to unwillingly fix their mistake. 

I also wanted to lay out in a some what detailed manner what happened, in case someone else runs into this kind of error. 

  • Historical content reference...

 

Thank you again for attempting to help me out. 

Patrick

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