Please find below a recap of the most frequently asked questions concerning W-2 forms:
Question: Why are my taxable wages on my W-2 less than my contract salary?
Answer: Taxable wages on your W-2 will probably be less than your contract salary because of certain “cafeteria” deductions or payments taken out of your check that are NOT taxable per IRS rules. Such deductions include retirement, health insurance, annuity contributions, flexible medical spending account contributions and other deductions that qualify for such treatment.
Question: Why are my Medicare wages higher than my taxable wages?
Answer: The computation for Medicare taxes does not recognize the same “cafeteria” deductions that are used for Federal taxable wages. Medicare only recognizes health insurance related deductions as not taxable for Medicare.
Additional Form 1095-C-Health Insurance Reporting for Tax Purposes
All full-time employees will be receiving a 2022 Form 1095-C no later than March 2, 2023 (the IRS deadline). This form is required by the Internal Revenue Service and will provide the employee with information related to health insurance coverage for the employee, spouse, and dependents as applicable. This form is not required to prepare your individual income tax return for 2022.
Please direct any additional W2 questions you may have to the Payroll Department.