Why could the wages in Box 1 of Form W-2 be greater than those in Boxes 3 & 5?
Taxes paid by the employer on behalf of an employee (generally Social Security and Medicare) are included in the wage amounts in Box 1 but not in the amounts in Boxes 3 and 5. This typically occurs when an employer pays a net amount to the worker and agrees to pay the worker’s portion of Social Security and Medicare taxes.
