FREQUENTLY ASKED QUESTIONS REGARDING YOUR W2
Why doesn’t my contract salary match my W-2 wages?
Fiscal Year (July through June) Contract Salary is the amount you would earn based on the standard work schedule for your position.
Calendar Year (January through December ) Box 1 on the W-2 statement represent all payments issued during the Calendar Year less any pre-tax deductions, such as 125-plan insurance premiums or deductions to a tax sheltered annuity. The wages listed also include other types of payments such as pay supplements, bonuses, stipends, or other miscellaneous pay.
Why are my taxable wages different than my total gross pay?
Pre-tax deductions - Insurance deductions under the Flexible Benefits (125) Plan, deductions for a Flexible Spending Account and payments made to a 401(a) plan (Bencor) are not included as taxable wages for federal income tax, social security or medicare. Deductions for these categories are not displayed on your W-2 statement.
FIT Wages (box 1) are also reduced by deductions to a 403(b) plan and/or 457 plan. Amounts deducted under a 403(b) plan are listed in box 12 (code E) and under a 457 plan in box 12 (code G) on the W-2 statement.
Taxable cost of group-term life insurance over $50,000. Imputed Income – displayed in box 12 (code C). This represents the taxable cost of group-term life insurance coverage over $50,000 provided to the employee as a benefit. This amount is also included in boxes 1, 3, and 5.
I think the amount of Federal Income Tax Withheld is incorrect.
The amount of Federal Income Tax (FIT) withheld is based on taxable wages and the information on your W-4 Employee's Withholding Allowance Certificate. For tax calculations, total wages are reduced by pretax deductions to determine taxable wages, as discussed in the previous question. For final tax calculations, these wages are then reduced by the value of the number of exemptions listed on the W-4 form.
The IRS provides a Personal Allowances Worksheet with the W-4 form that may help you determine the number of allowances you should claim for proper withholding. W-4 forms are available through your payroll contact person and accessible through several web sites including our Seminole County Public Schools http://www.scps.k12.fl.us/payroll or through the Internal Revenue site at www.irs.gov.