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W2 shows less gross than last year

Posted on 2/17/17 at 6:42 pm
Posted by mpar98
Baton Rouge
Member since Jan 2006
8034 posts
Posted on 2/17/17 at 6:42 pm
But got a raise...we figured something was wrong when we showed to owe more taxes than last year. We took steps (more withheld) to get closer to even. Has anyone had an incorrect W2? Wih the lower amount it shows less taxes withheld which has led to this...besides a call to hr, anyone see this before?
Posted by castorinho
13623 posts
Member since Nov 2010
82010 posts
Posted on 2/17/17 at 6:46 pm to
Yes it happens. Calling them is all you can do. You can see what your YTD numbers are on your last 2016 paycheck to give an idea
Posted by SLafourche07
Member since Feb 2008
9928 posts
Posted on 2/17/17 at 7:42 pm to
Did you maybe start contributing more to a 401k? Did insurance go up? It is possible to get a raise and have a lower amount show on your W2.
Next year I am pretty sure I will due to the addition of HSA contributions even though I got a raise.
Posted by mpar98
Baton Rouge
Member since Jan 2006
8034 posts
Posted on 2/17/17 at 8:10 pm to
We did increase the 401k contributions....but I dont know how the overall gross would be less
Posted by ds1tiger
Closer than you think
Member since Apr 2006
359 posts
Posted on 2/17/17 at 9:04 pm to
401k contributions can lower your taxable gross income, which is what is in box 1.
Posted by GCTigahs
Member since Oct 2014
2021 posts
Posted on 2/18/17 at 7:07 am to
Not sure of your situation but I get paid on the 1st and 16th of every month. Well, the way Jan 1st 2016 fell, that check was paid as the last check of 2015. So in 2015, I was paid 25 paychecks and in 2016 I was paid 23 pay checks. That's where my difference came from.
Posted by Twenty 49
Shreveport
Member since Jun 2014
18698 posts
Posted on 2/18/17 at 8:48 am to
The amount in box 1 does not include stuff like your 401(k) contribution, health care reimbursement account contribs, and health insurance premiums.

We each made more in 2016 than 2015, but both our W-2 numbers were lower because of increased health premiums and increased contribs to 401(k).

So these factors could be affecting your W-2 figures for income and amount withheld.
Posted by The Spleen
Member since Dec 2010
38865 posts
Posted on 2/18/17 at 8:56 am to
Is your Box 3 and 5 less than last year? Those are the boxes you need to look at as it is your true gross income, at least Box 5 is.
Posted by mpar98
Baton Rouge
Member since Jan 2006
8034 posts
Posted on 2/18/17 at 9:19 am to
Yes 3 and 5 are less than last year...got a raise but increased amt to 401k...still not sure how that shows up as less.
Posted by tigercross
Member since Feb 2008
4918 posts
Posted on 2/18/17 at 11:10 am to
quote:

Not sure of your situation but I get paid on the 1st and 16th of every month. Well, the way Jan 1st 2016 fell, that check was paid as the last check of 2015. So in 2015, I was paid 25 paychecks and in 2016 I was paid 23 pay checks. That's where my difference came from.



This is the answer. I got 27 paychecks in 2015 and 26 in 2016. Box 1 was lower in 16 even though I got a raise and kept 401k contributions the same.
Posted by skrayper
21-0 Asterisk Drive
Member since Nov 2012
30816 posts
Posted on 2/20/17 at 10:34 am to
quote:

Yes 3 and 5 are less than last year...got a raise but increased amt to 401k...still not sure how that shows up as less.


Compare your final paycheck from 2016 to 2015. Those will include your overall earnings, regardless of tax deduct-ability. Your tax forms will only show taxable wages, and are never a good indicator of money paid out to you (including insurance, 401k, etc)
Posted by Scooba
Member since Jun 2013
19999 posts
Posted on 2/20/17 at 1:17 pm to
Did you do anything with 401k?
Posted by baldona
Florida
Member since Feb 2016
20376 posts
Posted on 2/20/17 at 3:08 pm to
Did your bi-weekly paychecks go up from last year? If you weren't getting paid more into your bank account after 401k, insurance, etc. were taken out than obviously your W-2 will not go up.

401k, insurance, etc. are all pre-tax withdraws. So they are taken out straight from your gross pay dollar for dollar, if your salary was $5000/ month and you put $1000 into 401k and health insurance than your W-2 taxable income was only $4000/ month.

The other answer is as said, that you may of been paid in 2015 more times than in 2016 due to dates.
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