Tips for Verifying and Validating Your Information
Welcome back to Wage’s Creek! After the chaos of year-end payroll processing, it’s time to focus on something every employee will encounter early in the year: Form W-2.
This essential document reports your earnings and taxes paid for the prior year, and ensuring its accuracy is critical for filing your taxes and avoiding potential headaches with the IRS.
In this post, we’ll break down how to verify and validate the information on your W-2 so you can confidently tackle tax season.
Why Verifying Your W-2 Matters
Form W-2 is more than just a summary of your income—it’s the foundation for your tax return. Errors can lead to delays in processing, missed deductions, or even audits. Taking a few minutes to review your W-2 can save you time and stress down the road.
Step-by-Step Guide to Checking Your W-2
1. Confirm Your Personal Information
This may seem obvious, but payroll professionals know how critical it is that you ensure your name, Social Security number, and address are correct. Even a small typo can cause issues with the IRS or delay your tax refund. If you spot an error, notify your employer immediately.
2. Verify Your Earnings
Compare Box 1 (Wages, Tips, Other Compensation) with your final pay stub from the previous year. Keep in mind that Box 1 may differ from your gross pay due to pre-tax deductions like 401(k) contributions or health insurance premiums.
Gross Income -- Pre-Tax Deductions = Taxable Wages in Box 1
3. Check Tax Withholdings
Review the amounts in Boxes 2, 4, and 6, which show federal income tax, Social Security tax, and Medicare tax withheld. These should align exactly with the amounts deducted from your paychecks over the year. Discrepancies should be addressed with your employer.
Box 2 = Federal Income Tax YTD Amount
Box 4 = Social Security Tax YTD Amount
Box 6 = Medicare Tax YTD Amount
4. Review Benefits and Deductions
Boxes 12 and 14 may include codes for retirement contributions, health savings accounts, and other benefits. Confirm these amounts match your records and your enrollment choices.
5. State and Local Tax Details
If applicable, review Boxes 15-20 for state and local income tax information. Ensure the correct state(s) and locality are listed, especially if you worked remotely or in multiple locations.
Work in New York? The State taxable income amount is required to be the same as the amount in Box 1, even if some of the earnings occurred out-of-state, so Box 16 of Form W-2 should match.
Common W-2 Errors and How to Address Them
1. Incorrect Social Security Number (SSN)
An incorrect SSN can cause major issues with the IRS. Contact your employer immediately to request a corrected W-2 (Form W-2c).
2. Missing or Misreported Wages
If wages or withholdings are missing, gather your pay stubs and discuss the discrepancy with your payroll department.
3. Double-Check Multiple W-2s
If you changed jobs during the year, ensure you received a W-2 from each employer. Verify the accuracy of each form to avoid underreporting income.
4. Reporting Remote Work Locations
If you worked remotely in a state different from your employer’s location, confirm that state taxes were properly withheld. You may need to file in multiple states.
What to Do if Your W-2 Is Wrong
If you identify an error, act quickly:
Notify Your Employer:
They are responsible for correcting mistakes and issuing a W-2c.
Contact the IRS if Necessary:
If your employer does not resolve the issue by the end of February, reach out to the IRS for assistance.
Keep Documentation:
Retain copies of your pay stubs, correspondence with your employer, and any corrected forms for your records.
Conclusion
Taking the time to verify and validate your Form W-2 ensures your tax return is accurate and helps you avoid potential issues. A little effort now can save you from stress later.
Stay tuned as we continue the Wages Creek Payroll Consulting blog series to bring you more tips and insights for navigating payroll and taxes in 2025!
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