Page 156 - Essentials of Payroll: Management and Accounting

EXHIBIT 5.2 Compensation
W-2 Form

various types of wages paid are listed. The following list describes the
most commonly used boxes in the form:
Box 1:Wages, tips, other compensation.
Include in this box the total amount of all wages, salaries, tip
income, commissions, bonuses, and other types of compensation
paid to the employee.

Box 2: Federal income tax withheld.
The federal income taxes withheld by the company from the
employee’s pay are recorded here. Only federal taxes should be
included here, since state income taxes withheld are listed in Box 17
at the bottom of the report.

Box 3: Social Security wages.
The total amount of compensation paid that is subject to Social
Security taxes should be listed here. This means that anyone’s pay

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