Withholdings on W-2 don't match withholdings from paychecks

[pk28]

I was a full-time, salaried employee at a small, 6-person LLC from 2021-2022. We lived across 3 different states, and used ADP for payroll. Around the start of the new year, my employer was in the process of switching to a PEO and as a result our first paycheck was paid through Zelle (from the business account) with no deductions or withholdings. We went back to ADP while the PEO process was finalizing, and our regular paychecks resumed at the end of January. Basically, we used ADP in 2021, took a one-paycheck break, then went back to ADP for the rest of Q1. 

I just got my W-2, and it appears as though they grossed up that first paycheck and included it with the rest of my earnings. They also grossed up all of my withholdings, so every number on my W-2 is higher than expected. I didn't pay any taxes on that first check, but now my W-2 states that I've paid hundreds more than I actually have. I thought they would add the first paycheck as-is to boxes 1, 3, and 5 and that the rest of the boxes for withholdings would state the amount as reported in ADP. 

I'm getting tax fraud vibes from this, and would love to have the correct information before filing. 

[AliciaP1]

If your one-off paycheck was for your normal net paycheck amount, then all your W-2 boxes should be higher than your year-end pay stub.  Even if the one-off paycheck was for your normal gross pay (before all withholdings), all the boxes on your W-2 should be grossed up.  Your employer is required to withhold payroll taxes from any monies you receive as employee compensation and would have paid those taxes along with the rest of the Q1 withholdings.

[pk28]

Thanks, @AliciaP1! The one-off paycheck was the full gross amount, nothing withheld. If all the boxes on the W-2 are grossed up, wouldn't that mean that money was withheld from my check? I'm confused because I don't want to falsely claim that I paid my portion of taxes when I didn't. 

[AliciaP1]

Your employer submits the taxes to federal and state agencies, as long as they submitted the full amount, which they would need to, or their quarterly returns wouldn't reconcile, you technically did pay the taxes.  For example, let's say you received $2,000 for the one-off paycheck which was gross wages and we say your federal income tax withholding rate is 10% and your state income tax withholding rate is 4.5%.  In this example, your W-2 would report the check as wages of $2,569.04, federal income tax withholding of $256.90, state income tax withholding of $115.61, social security tax withholding of $159.28, and medicare tax withholding of $37.25 (2569.04-256.90-115.61-159.28-37.25 = 2000.00).  This is the same calculation your employer would have had to do to get the payroll reported correctly on the quarterly payroll tax return they are required to file and pay.  So, at the end of it all, they paid it on your behalf and then included it in your W-2 appropriately.  You're in good shape to report the W-2 as is!

@pk28