How Do I Know if My W2 is Correct?

Do you have questions about your W-2? From wage variations to outdated information, W-2s are one of our most common payroll-related questions we receive each year.

So how do you know whether your W-2 is actually wrong or if what you’re seeing is simply a tax nuance? Below, our payroll experts break down the most frequently asked questions to help you understand your form, spot errors, and know exactly what to do next.

How Do I Know If My W2 Is Correct?

The best way to confirm your W-2 is accurate is to compare it against your personal records, especially your final pay stub of the year, and ensure your W-2 has been correctly completed.

1. Verify Your Personal Information (Boxes A–F)

Start with the basics. Boxes A-F include your identifying information and your employer’s details. Make sure:

• Your name is spelled correctly
• Your Social Security number is accurate
• Your employer’s information looks correct

Errors here, even small ones, should be corrected before you file your taxes.

2. Compare Wages to Your Pay Stubs

This is where many people start wondering: why does my W-2 not match my salary? When checking your W-2, you should compare not only your wages but also the hours worked as shown on your pay stubs. To verify your W-2, you will need to reference your last paycheck of the tax year.

Box 1 – Wages, Tips, Other Compensation

This number is not your total salary. It equals your gross pay minus pre-tax deductions, such as:

• 401(k) or 403(b) contributions
• Pre-tax health, dental, or vision premiums
• HSA, HRA, or FSA contributions

Because of these deductions, Box 1 is often lower than your year-to-date (YTD) earnings on your last paycheck.

3. Check Taxes Withheld

Compare these amounts to your year-end pay stub:

• Box 2 – Federal income tax withheld
• Box 4 – Social Security tax (generally 6.2% of Box 3)
• Box 6 – Medicare tax (generally 1.45% of Box 5, plus 0.9% for high earners)

Don't worry about small rounding differences, as those are normal.

4. Review Benefits & Special Boxes

There are several commonly overlooked but important areas and codes on your W-2 that are worth highlighting.

• Box 12 has several codes do know:

  • D = 401(k) contributions;
  • W = HSA contributions; and
  • DD = Employer-sponsored health insurance cost (this is information only).

• Box 13 has three check boxes to indicate whether you are a statutory employee (which means your earnings are subject to social security and medicare taxes but not federal income tax); if you participated in an employer's retirement plan; and/or if, due to illness, you received compensation from an employer's insurance plan while not working.

• Box 14 may include state disability insurance, union dues, or other payroll items.

5. Look Over State & Local Tax Information (Boxes 15–20)

If you lived or worked in more than one state, or perhaps worked remotely, this section is especially important. Ensure that your state wages and taxes match your pay stubs and that your taxing state is where you actually worked.

Because state tax laws vary, some situations may require you to file in multiple states, usually with credits to offset double taxation.

Correcting Errors with the IRS and Social Security

Discovering an error on your W-2 form can be stressful, but taking quick action is essential to ensure your income, taxes withheld, and social security benefits are reported correctly. An incorrect wage and tax statement can affect your tax return, delay your refund, or even impact your future social security payments, so it’s important to address any issues as soon as you notice them.

Start by contacting your employer right away. Let them know about the error on your W-2 form. You’ll need to prove your identity before providing a clear description of what’s wrong, whether it’s incorrect wages, the wrong address, or a mistake in the taxes withheld. Your employer is required to provide a corrected W-2 (called a W-2C) as soon as possible after discovering an error. This corrected form will show the accurate information for the year, helping you file your tax return correctly. 

If your employer does not respond or refuses to issue a corrected W-2, you can request an IRS representative initiate a formal request. The IRS will send a letter requesting they provide a corrected wage and tax statement as soon as possible. This letter will inform them of their obligation to do so, as well as warn them about potential penalties for failure to comply with IRS requirements. 

What if I receive a corrected W-2 after I file my taxes?

In the event you receive a corrected W-2 after you’ve already filed your tax return, you will need to file an amended return using Form 1040X. This ensures your tax return matches the corrected information and that you receive any refund you’re owed. You can download Form 1040X directly from the IRS website or request a copy from your local IRS office. Remember to include a copy of your corrected W-2 with your amended return.

Always remember to keep copies of all forms, letters, and supporting documents for your records. You can check the status of your refund, verify your wages and taxes withheld, and download any required forms by visiting the IRS website. For additional guidance, refer to IRS Publication 15 (Circular E), which provides detailed instructions for employers and employees on federal taxes withheld and reporting requirements.

Other Common W-2 Questions

What Does a W-2 Look Like?

A W-2, also known as Form W-2 or Form W, is a standardized IRS form divided into numbered boxes that report:

• Your taxable wages
• Federal, state, and local taxes withheld
• Retirement and health benefit contributions

Stratus HR employees can log into SplashTrack for a box-by-box explanation. Simply navigate to My Info → Taxes W2 → Explain My W2 for detailed guidance.

Why Does My W-2 Not Match Salary?

This is one of the most common (and most misunderstood) issues. Your W-2 shows how much money you made in a specific tax year and how much your employer withheld for state and federal taxes.

Your YTD (year-to-date) earnings include all compensation paid during the year, including:

• Hourly wages or salary
• Bonuses and commissions
• Stipends, tips, reimbursements
• Severance or vacation pay

Your W-2 summarizes the money you earned and the taxes withheld for the year.

However, Box 1 of your W-2 only shows income subject to federal income tax. Pre-tax deductions are excluded, which is why your W-2 wages often look lower than expected. The upside? Less taxable income means fewer taxes owed.

Why is Box 3 higher than Box 1 on my W2?

If you are wondering by Box 1 and Box 3 are different on your W-2, it's because Box 3 includes wages subject to social security tax. Any 401(k) contributions are still included and taxed here, although wages may be capped at the Social Security wage base of $176,100 in 2025.

Should box 5 match Box 3 (or Box 1) on my W2?

Box 5 is usually the highest wage number because it includes nearly all compensation, including retirement contributions, with no wage cap.

What if my address changed?

Paper W-2s must be postmarked by January 31 each year to the address on file. If yours was sent to an old address, try to retrieve it to protect your personal information. You can always access your digital W-2 in SplashTrack and update your address under My Info.

Why didn’t I have federal taxes withheld?

This may happen if:

• You claimed “exempt” on your W-4
• Your earnings weren’t high enough for federal withholding

You can review and update your W-4 anytime in SplashTrack or the Stratus mobile app.

What if my name or SSN is wrong?

If your name is misspelled, doesn’t match your legal name, or your Social Security number is incorrect, contact the payroll department right away. You’ll need accurate information on your W-2 before filing your taxes.

Can I access my W-2 if I no longer work for the company?

Yes, former employees can still log into SplashTrack to access W-2 and pay history. If you have trouble logging in, please contact support.

Tired of Processing W-2s Every Year?

If issuing W-2s and managing payroll compliance feels like a drain on your time, HR outsourcing may be the solution. Book a consultation with Stratus HR and let our experts handle the administrative burden so you don’t have to next year.