Does gross pay or net pay get reflected on W2"s?
I have a last paystub of the year for 2009. I know this is not an indicator of W2's for tax filing purposes, but was wondering which one gets printed on the W2. My YTD gross, which is substantially more, is printed on the last paystub, and then my net pay for each month gets calculated. I am thinking that your gross pay goes in the W2 and then your federal withholdings gets deducted from this. Is this right? I have heard conflicting stories...probably moreso like conflicting opinions and just wanted to know. Help if you can?4 years ago - 7 answers
It's actually neither. Federal taxable wages starts with gross wages and then is reduced by certain pretax items like 125 plans and 401(k) plans. It may also be increased by certain items such as personal use of a company car, group life in excess of $50,000 and fringe benefits for greater than 2% S-corp owners.
So for some people, it is gross wages, but for many, its not.
Here is a W-2 so you can see for yourself what numbers go on it:
Your Gross Pay is on your W2. This is how you know how much you made in 2009. Net pay is not on there because Net pay includes your medical, dental, and other deductions that you have... Your W2 is all about how much Gross did you make, how much was paid to taxes, and how much do you owe still or how much is owed to you.
Hope this helps!
Source(s)by Allison - 4 years ago
Dude, it has to be gross. If it was net, you'd see people putting all their income into withholding.by the tax lady - 4 years ago
Gross not Net. That is a fact.by MeNUR2 - 4 years ago
The W-2 shows the gross (minus certain non-taxable money) on some lines and the withholdings on other lines. It does not show the net.by StephenWeinstein - 4 years ago
Box 1 of your W2 shows gross pay after pretax deductions.by Judy - 4 years ago