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Why doesn’t the amount in the Box 5 Medicare wages and tips agree to the total Gross Earnings on my last payslip?

April 26, 2017agree Box doesn’t gross earnings medicare tips total wages

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Why doesn’t the amount in the Box 5 Medicare wages and tips agree to the total Gross Earnings on my last payslip?

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The W-2 Box 5 amount represents taxable wages and other compensation for Medicare taxation purposes. This would be different than the payslip Gross Earnings due to items that reduce your Social Security taxable wages which are the FSA Medical and Dependent Care deductions, pretax parking permit and pretax health and dental insurance deductions. Medicare taxable wages do not have a ceiling amount.