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W-2 Taxable Wages

Pay Elements Used To Determine Taxable Wages.

Box 1: Wages, Tips and Other Compensation
Gross Earnings (Includes taxable fringe benefits and tips)
Minus	Federal Tax Exempt Wages
Minus	Deferred Compensation
Minus	Meals
Minus	Cafeteria 125 Benefits (May vary based on the benefit)
Plus	Group-Term Life Insurance (cost of coverage over $50,000)
Plus	Third-Party Sick pay
Plus	Other Compensation

Box 3: Social Security Wages
Gross Earnings (Includes taxable fringe benefits and tips)
Minus	Social Security Exempt Wages
Minus	Meals
Minus	Tips (Social Security Tips must print separately in Box 7)
Minus	Cafeteria 125 Benefits (May vary based on the benefit)
Plus	Group-Term Life Insurance (cost of coverage over $50,000)
Plus	Third-Party Sick pay

Box 5: Medicare Wages and Tips
Minus	Medicare Exempt Wages
Minus	Meals
Minus	Cafeteria 125 Benefits (May vary based on the benefit)
Plus	Group-Term Life Insurance (cost of coverage over $50,000)
Plus	Third-Party Sick pay

Box 16: State Wages, Tips, Etc.
Gross Earnings (Includes taxable fringe benefits and tips)
Minus	State Exempt Wages
Minus	Deferred Compensation (May vary by state)
Minus	Meals (May vary by state)
Minus	Cafeteria 125 Benefits (May vary based on the benefit and the state)
Plus	Group-Term Life Insurance (cost of coverage over $50,000)(May vary by state)
Plus	Third-Party Sick pay (May vary by state)
Plus	Other Compensation (May vary by state)

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