That is unusual. Certain benefits that are deducted on your Federal Box 1, are not deducted on your state return.
Some people may see a difference between Box 1 Federal Wages and Box 16 State Wages due to the value of certain pre-tax retirement or things like transportation benefits.
On your W-2:
You might want to review your state reconciliation worksheet.
This does not answer the question of how to resolve the issue, please write back with additional details.
If these observations do not yield a reason for the difference, I suggest you contact the payroll company and request an explanation.
We are having an Ask the Experts event specifically about Crypto transactions on 03/15/23. Please register for it here.
Thanks for responding.
To answer your questions see below in bold and other colors.
On your W-2:
My entry in 12a is my Health deduction.
My entry in 12b is my 403b
My entry in 14 is my state unemployment.
Oddly my earnings summary is showing a difference of $560 between it and the entry in 12a .
I had extra tax taken out this year to offset dividends and interest from an inheritance for my wife.I don't believe this impacting box 16 in state wages. Again, usually the state of NJ allows for the health insurance to reduce gross income.
It appears I need to discuss this mess with PayCom.
You might want to review your state reconciliation worksheet.