Question:

How do I know that my W-2s are correct?

Answer:

The best report to run to verify your W-2 and 941 information is the Taxable Income Detail report. You can run this report for both Federal and State/Local tax information. When running this report, select the detail option on the report tab. Additionally, be certain to run this report for the same dates as you do the W-2s. When printing tax reports (941, W-2), you can choose to run them on either pay period or paid dates. Whichever one you choose, it is important that you choose consistently on all your reports. (Click here to view screen shot example.)

Payroll records consist of two layers. There is the detail record and the summary record. That is why you will see on the report menu these two different types (e.g. Taxable Income Summary and Taxable Income Detail). Because a payroll can have multiple detail lines and each one can have different taxing statuses, it is critical to look at the Taxable Income Detail report to verify your W-2 information (click here to view screen shot). Run in a Detail format, this report will show gross pay, taxable pay and pay that will show as taxable income on the W-2/941. Pay particular attention to the latter number. It is this number that shows up on your W-2s as income (Box 1) and FICA/Medicare wages. These values are controlled by the Employee Information Pay setup checkboxes. If there is a discrepancy on any of these numbers, then they need to be adjusted from the View Payroll window.

If you include housing, 403-B or other information on the W-2s in boxes 12-14, you can verify this information from the Pay Item Summary and/or Deduction detail reports.

Taking a few extra minutes to verify your W-2 and 941 information is very important in assuring accurate filing of these critical reports.