3.03 - Calculating Box Totals on Form W-2
TSOP NO: |
3.03 |
SUBJECT: |
Calculating Box Totals on Form W-2 |
SOURCE: |
University Tax Services |
ORIGINAL DATE OF ISSUE: |
1/1/2018 |
DATE OF LAST REVISION: |
1/1/2018 |
RATIONALE: |
To provide employees at Indiana University a how-to guide on recalculating the amounts appearing on the Form W-2 and specifically, Box 1 of the Form W-2. |
PROCEDURES: |
BackgroundEvery year during tax season, employees at Indiana University receive a W-2. The numbers appearing on your W-2 can be recalculated by looking at payroll year-to-date (YTD) totals for the full calendar year. The W-2 below can be used as an example for following the step-by-step instructions on how to recalculate the boxes found on the W-2. ![]() Form W-2, Box 1· The amount in Box 1 of your W-2 represents your federal taxable wages for the year. In general, the equation below is used to calculate federal taxable wages: Box 1 on W-2 = Earnings – Before Tax Deductions + Noncash Taxable Fringe Benefits The following steps are an example of how to recalculate Box 1 of your W-2:
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![]() Form W-2, Box 2Box 2 represents the total amount of federal income tax withheld from your pay during the year. The following steps are an example of how to recalculate Box 2 of your W-2:
Form W-2, Box 3Box 3 represents the amount of social security wages that are subject to social security tax. In general, Box 3 is calculated the same as Box 1 with a few exceptions. The following steps are an example of how to recalculate Box 3 of your W-2: 1. Go to the Payroll YTD Totals screen. 2. Add any contributions you (do not add employer contributions) made to a tax deferred retirement account (45,839.33 + 2,795.62 = 48,634.95). These can be found by looking for the following in Before-Tax Deductions:
3. Social security wages have a maximum taxable amount. Please visit the Social Security Administration website for the latest annual limit. Any amount above the annual limit is not subject to social security tax. ![]()
Form W-2, Box 4· Box 4 represents the social security tax being withheld on social security wages (Box 3). The following steps are an example of how to recalculate Box 4 of your W-2:
![]() Form W-2, Box 5Box 5 represents the amount of Medicare wages that are subject to Medicare tax. In general, Box 5 is calculated the same as Box 3. The main difference stems from there being no limit on Medicare taxable wages. The following steps are an example of how to recalculate Box 5 of your W-2:
![]() Form W-2, Box 6Box 6 represents the Medicare tax being withheld on Medicare wages (Box 5). The following steps are an example of how to recalculate Box 6 of your W-2:
![]() Form W-2, Box 10Box 10 represents before tax dependent care benefits. The following steps are an example of how to recalculate some of the codes in Box 10 of your W-2:
![]() Form W-2, Box 12Box 12 provides various information. Codes are used on the W-2 to represent the different types of information presented. The following steps are an example of how to recalculate some of the codes in Box 12 of your W-2:
ii. Health Eng Addl Prm-Nontaxable iii. Health Eng Addl Prm-Pre Tax iv. Health Eng Addl Prm-Taxable v. Medical After Tax vi. EE Paid Medical Billing vii. Medical Plan (GD) viii. Medicl Pln ix. Taxable Medical
ii. 403(b) age 50 & over CU (GD) iii. Tax Deferred Account iv. 403(b) age 50 & over Catch-Up i. IU Retirement Savings Plan-GD
ii. Health Savings Account ![]() Form W-2, Box 14
The following steps are an example of how to recalculate some of the codes in Box 14 of your W-2:
II. NO PAY-Pers use of vehicle-taxCode Q – Tuition Benefit I. NO PAY-Tuition Benefit Form W-2, Box 16
Form W-2, Box 17
The following steps are an example of how to recalculate Box 17 of your W-2:
![]() Form W-2, Box 18
Form W-2, Box 19
The following steps are an example of how to recalculate Box 19 of your W-2:
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DEFINITIONS: |
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CROSS REFERENCES: |