Year-to-date Incorrect

[leenabelle]

The YTD gross on my paycheck is incorrect by about $15,000. I have told my HR department about it, but it hasn't been fixed yet. How will this effect taxes if they don't correct it?

[VolvoGirl]

Depends on what was wrong.   They won’t be filling the W2 until January so it should get corrected by then.   And you pay taxes on the taxable amount not the gross amount.   The gross amount includes everything even pre-tax items so the gross can be a lot more.   

[leenabelle]

Hello,

Thank you for your response. The thing that's wrong is my YTD when the companies switched, says I'm currently making $15,000 over what I actually made. I'm just not sure how that will mess with things. 

[VolvoGirl]

Sorry I don’t understand.   That doesn’t explain the problem.   How did your company switch?  Switch to what?   If they got a new EIN employer number you will get 2 different W2 forms in January to report on your tax return.   

[leenabelle]

One company bought the other company. Yes, I am aware I will get different w-2s. I'm specifically worried about my gross being $15,000 more and how that may effect my taxes, tax brackets, taxes I may have to pay back, etc. 

[NCperson]

@leenabelle let the dead dog lie until you receive the W-2.  The taxable income on that form is all that matters.  the YTD on the paystub is not reported to the IRS. 

[leenabelle]

Why do i have to put in my gross wages when I file taxes? And do you mean taxable income as in the medicaid and social security, etc?

[NCperson]

@leenabelle in many cases, the taxable income reported on a W-2 is not the same as the gross income.  Why? because of 'cafeteria plan' items.  From Gross income subtract any 401k contributions, medical premiums, HSA contributions, etc.  Once all that stuff is subtracted the remainder is taxable income and what is reported in box 2a of the W-2. 

if you have the problem with YTD so do other employees.  I can't imagine the Payroll Department doesn;'t know that and would permit all those W-2s to be reported incorrectly. 

Until you see the W-2, there is nothing you can do about it in any event.