below is information from boxes 1 - 6 on your w - 2 form.\nw - 2 form\n1 wages, tips, other compensation…

below is information from boxes 1 - 6 on your w - 2 form.\nw - 2 form\n1 wages, tips, other compensation: $45,000 2 federal income tax withheld: $6,750\n3 social security wages: $47,500 4 social security tax withheld: $2,940\n5 medicare wages and tips: $47,500 6 medicare tax withheld: $689\nwhat could be a reason why the amount of wages in box 3 is $2,500 more than the amount of wages in box 1?\nchoose 1 answer:\na $2,500 shows the amount earned in tips.\nb $2,500 was taken out for 401(k) and health insurance.\nc the employer made a mistake when filling out the w2.

below is information from boxes 1 - 6 on your w - 2 form.\nw - 2 form\n1 wages, tips, other compensation: $45,000 2 federal income tax withheld: $6,750\n3 social security wages: $47,500 4 social security tax withheld: $2,940\n5 medicare wages and tips: $47,500 6 medicare tax withheld: $689\nwhat could be a reason why the amount of wages in box 3 is $2,500 more than the amount of wages in box 1?\nchoose 1 answer:\na $2,500 shows the amount earned in tips.\nb $2,500 was taken out for 401(k) and health insurance.\nc the employer made a mistake when filling out the w2.

Answer

Brief Explanations:

Box 1 includes taxable wages, tips, and other compensation. Box 3 (Social - security wages) includes all wages subject to social - security tax. Tips are subject to social - security tax and are often included in Box 3 but not always fully in Box 1 if they are unreported for income - tax purposes initially. 401(k) and health insurance deductions are pre - tax for federal income tax and would not cause this difference. Without evidence, we can't assume an employer mistake.

Answer:

A. $2,500 shows the amount earned in tips.