Box 1. Wages, Tips, Other Compensation (use this for Federal Income Tax) -- includes:
+ Total Gross Wages
+ (plus) Other Benefits
- (minus) Retirement
- (minus) Health Insurance
- (minus) Flexible Spending Accounts
- (minus) 403B Plan (Teachers) or 457 Plan (Town) or 457 Plan (Part-Time, Temporary, Seasonal).
Figures can be obtained from your final pay-stub for the year.
Box 5. Medicare Wages Only people that qualify for the Medicare tax (hired after 4/1/86) will have an amount in this Box. Any employee that received Workers' Compensation pay in will a show higher number in this box than in box 1.
+ Total Gross Wages
- (minus) Health Insurance.
Box 6. Medicare Tax Withheld Medicare Tax = 1.45% of Medicare Wages. Employees hired after April 1, 1986 pay this tax.
Box 12. Codes Used:
E = 403B - Teacher Annuity, with dollar amount
G = 457 Plan - Town Annuity, with dollar amount
Box 13. Pension Plan is checked for all employees paying into the Town or Teachers' Retirement Plans. Deferred Compensation is checked for all employees with 457 Plan (Town Deferred Comp) or 403B Plan (Teacher's Annuity) or 457 Plan (Part-Time, Temporary, Seasonal) deductions.
Box 16. State Wages, Tips, Etc. (Use this for State Income Tax)
+ Total Gross Wages
+ (plus) Other Benefits
- (minus) Health Insurance
- (minus) 457 Plan (Town Annuity) or 457 Plan (PT/Temp/Seasonal) or 403B (Teachers)*
On your W-2, Box 16 is a special amount shown for state wages. Generally, the amount shown for state wages is higher than the amount shown for federal wages because your pension contributions (if you are not part-time, temporary or seasonal) are excluded from your income for U.S. tax purposes only. A deduction can be taken on your state tax return for pension contributions (up to $2,000), but it does not affect your reportable state wages.
* A 1998 change in the state tax code has now extended state tax deductibility to the 403B plans.
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