Form W-3 and Form W-2 covering each box of the forms and discussing what they mean. We will start with form W-2, the form we are most familiar with as employees. We will talk about total wages in box one, total wages in box 1 being reduced by things like a 401K plan. We will talk about FIT withholdings in box 2, whithholdings the employer kept to pay employee payroll taxes. We will talk about social security wages in box 3, a number that will have a cap and therefor may be lower then box 1 wages for high income earners. We will talk about medicare wages in box 5 which is often the most accurate number for actual wages earned.
We will talk about the relationship between what is reported on form W-2 and what is reported on form w-3, for W-3 being a compilation of the number on all form W-2s.
For more accounting information see website.
http://accountinginstruction.info/cou...