What does it mean when my medicare wages in box 5 on my W-2 are greater than my state wages in box 16 on my W-2?

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The most common reason why Medicare wages (Box 5) are higher than State wages (Box 16) is due to 401(k) contributions (W2, Box 12, Code D) or other pre-tax retirement plan contributions. They are subject to Medicare tax, but not to federal or state income tax.

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