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L
Larry11
January 11, 2019
Question

Difference on W-2s between federal and state wages

  • January 11, 2019
  • 2 replies
  • 2 views

This is the first year that my W-2s Colorado state weages does not equal the federal. Seems like an error.

2 replies

A
Anonymous
January 12, 2019

The two boxes are not calculated in the same way, and are not expected to always be the same. But, it could be that they should be for you.

Box 1 uses the sum of amounts for a long list of tax tracking types like Compensation and 401k.

State wages boxes report the taxed wages.

 

If normally they are the same for you and they are not this year, look for payroll items that should impact taxes wages but do not.

 

For example, if you have a 401k deduction that should reduce both federal and state income tax, but it does not reduce state taxable wages (set up wrong) then the boxes will differ.  If you have set up any new payroll deductions this year, that is a good place to start.  Edit the items and make sure the taxability is correct.

 

Use the Excel based "Tax Form Worksheets" to create a W-2 in Excel that you can QuickZoom on to see details.  Using it you can see all the Amounts that make up Box 1 and the state boxes.

You can click on the tax amount s there to see the wagebase per paycheck and other details.

Run the report from the QB menu:  Reports | Employees & Payroll | More Payroll Reports in Excel | Tax Form Worksheets.

 

    Rose-A
    Rose-A
    Level 10
    January 12, 2019

    It's nice to have you here, Larry11.

    Allow me to provide a little information about the federal and state W2s in QuickBooks Desktop.

     

    The reason why your federal and state W2s has a difference is when you set up a retirement plan for your employees. Retirement plans are not reflected in box 16 in W2 forms.

     

    You may find this article helpful: How QuickBooks populates W-2.

     

    If you need help with QuickBooks in the future, you can call our dedicated team who will be happy to assist you. Our contact details can be found here along with our opening hours:

    1. Go to: https://help.quickbooks.intuit.com/en_US/contact.
    2. Choose your QuickBooks Product.
    3. Select your QuickBooks version.
    4. On the Contact Us page, click a topic.
    5. Click on the Get Phone Number button to see the support number.

    If there's any way I can be of help, please let me know, I'll be around to help.

    A
    Anonymous
    January 12, 2019

    RE: "The reason why your federal and state W2s has a difference is when you set up a retirement plan for your employees. Retirement plans are not reflected in box 16 inf the W2 forms."

     

    This is not a correct answer. Not even close. It is neither "the" reason nor is it even always "a" reason. "Retirement plans are not reflected in box 16 in W2 forms" is only the case for some states, and only if the payroll items are set up correctly, and yet it is always true for Box1.

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