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Level 3
posted Mar 11, 2023 11:20:54 PM

nj wage issue for 2022.

My payroll provider PayCom listed my NJ wages on my W2 higher than my Social Security Wages and Tips?

I don't feel this is correct.

 

Shouldn't they be the same?

0 2 270
2 Replies
Expert Alumni
Mar 12, 2023 10:14:34 AM

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:

  • Is Box 1 larger than box 3?
  • If it is, is there an entry in box 12, or 14 that could explain it?
  • If box 1 is not larger than box 3
    • Is box 16 the same as box 1.
    • Calculate the difference and see if there is a benefit, or retirement contribution that matches the difference.
    • Is there any indication of a reason for a discrepancy.

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.


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Level 3
Mar 12, 2023 5:32:39 PM

Thanks for responding.

To answer your questions see below in bold and other colors.

 

On your W-2:

  • Is Box 1 larger than box 3?   Answer,  No
  • If it is, is there an entry in box 12, or 14 that could explain it? 

                       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 .

  • If box 1 is not larger than box 3    (It is not)
    • Is box 16 the same as box 1.   No.  Far from it
    • Calculate the difference and see if there is a benefit, or retirement contribution that matches the difference.  Again when this is done their is a $560 discrepancy, but this doesn't solve my problem.
  • Is there any indication of a reason for a discrepancy.    No

    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.