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I was wondering why the "Wages, tips, other compensation" (box 1) amount on my W2 form did not match the "total earnings" amount on my final pay stub of the year. But I figured out how the Box 1 amount is calculated.
Box 1 amount = (Total Earnings + EGTL Amount) - (Pretax Salary Deductions)
The EGTL Amount is related to employee group term life insurance. This amount is shown on the pay stub in the earnings section, but is not added into the "Total Earnings" amount. It is not an amount paid to the employee, but it is considered a taxable fringe benefit.
The pretax salary deductions include amounts deducted from the paycheck for medical, dental, and vision, 401K plans, and health savings account (HSA). It does not include deductions for Pension, Long Term Disability plans, nor Medical-Retiree benefits.
.. [edited to add the following on 2011/12/22] ..
Box 3 and Box 5 = Social Security Wages / Medicare wages and tips
= (Total Earnings + EGTL Amount) - (Deductions for medical, dental, vision, and HSA)
For Box 3 & 5, 401k contributions are NOT subtracted.
Box 4 = Social security tax withheld = Box 3 * 6.02%
Box 6 = Medicare tax withheld = Box 5 * 1.45%
Amounts paid for Travel Expenses are NOT included in any of the amounts on the W2 form.
[edited to add additional details on 2016/01/06]
Box 1 amount = (Total Earnings + EGTL Amount) - (Pretax Salary Deductions)
The EGTL Amount is related to employee group term life insurance. This amount is shown on the pay stub in the earnings section, but is not added into the "Total Earnings" amount. It is not an amount paid to the employee, but it is considered a taxable fringe benefit.
The pretax salary deductions include amounts deducted from the paycheck for medical, dental, and vision, 401K plans, and health savings account (HSA). It does not include deductions for Pension, Long Term Disability plans, nor Medical-Retiree benefits.
.. [edited to add the following on 2011/12/22] ..
Box 3 and Box 5 = Social Security Wages / Medicare wages and tips
= (Total Earnings + EGTL Amount) - (Deductions for medical, dental, vision, and HSA)
For Box 3 & 5, 401k contributions are NOT subtracted.
Box 4 = Social security tax withheld = Box 3 * 6.02%
Box 6 = Medicare tax withheld = Box 5 * 1.45%
Amounts paid for Travel Expenses are NOT included in any of the amounts on the W2 form.
[edited to add additional details on 2016/01/06]