I have a staff member that I deduct 403(b) additions into a retirement plan. Box 12a indicates the appropriate dollar amount to the plan. Box 1 (wages, tip, etc) deducts the appropriate retirement dollar amount from the total federal wages but the North Carolina (box 16) wages do not deduct any of the retirement plan dollars. Box 16 does not match Box 1. How did I goof the payroll setup and how would I fix this discrepancy?
Thank you for your response. We do subscribe to the enhanced payroll module from Intuit. From your response I went to the payroll item I initially setup for the 403b entry and checked the "NC - Income Tax" entry in the "Taxes" window. This did not change the W-2 box entry probably since it is not retroactive. For this year I will override the box 16 entry to the correct wage value. Do you agree or am I still in left field?