I worked the entire tax year in the same city (a 2% tax rate city) and the wages reported in box 5 (Medicare Wages) on my W-2 do not equal the wages reported in box 18 (Local Wages). Why?
A.) Your employer or your employers payroll service provider may have incorrectly excluded contributions made to a deferred compensation or 401K plan (as explained in the preceding question, these contributions are taxable at the local level at the time in which they are earned, not received or paid out). If this is the case, please contact your employer and advise them to begin correctly including these contributions in your taxable local wages. While your employer is legally required to withhold the correct amount of local tax due to your city of employment, you have the final responsibility to ensure that the local tax is correctly withheld or paid. B.) Your employer or your employers payroll service provider may have been delayed withholding local taxes from your wages because you were a new employee or you changed work city locations. C.) Your employer or your employers payroll service provider simply failed to report all your local taxable wages and withhold the correct local tax
Related Questions
- I worked the entire tax year in the same city (a 2% tax rate city) and the wages reported in box 5 (Medicare Wages) on my W-2 do not equal the wages reported in box 18 (Local Wages). Why?
- What is the procedure for increasing a citys ad valorem tax rate?
- What is the City of Garlands current ad valorem tax rate?
