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W-2 a Employee's social security number 1 Wages, dips, other compensation 2 Federal income tax withheld 123-45-6789 $21,528 $2152.80 Employer...

Please help me understand this. Different jobs pay different amounts, but all employees have one thing in common. They pay taxes.



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W-2
a Employee's social security number
1 Wages, dips, other compensation
2 Federal income tax withheld
123-45-6789
$21,528
$2152.80
Employer identification number
1 social security wages
a Social security tar withheld
22-9876543
$21,528
$1334.74
c Employer's name, address, and ZIP code
5 Medicare wages and tips
G Medicare tax withheld
Sample Employer
Town, State 12345
$21,528
5312.16
d Central number
r Social security dpa
8 Allocated dips
e Employee's first name and initial
Last name
15
10 Dependent care benefits
1 Employee's address and ZIP code
11 Nonqualified plans
17:
12h
17
12r
Statutory employee
[XI
12d
Retirement Plan.
Third-party sick pay ...
.[1
14 Other
15 State Employer's State ID number
16 State wages, tips, etc.
17 State Income tax
18 Local wages, tips etc.
19 Local
20 Localty
XX 123-456-98/987
income tax
$21,528
$645.84
W-2 Wage and Tax Statement

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( a ) Box 1 : Enter the annual mean wage by multiplying the gross pay on your pay stub by the appropriate
number of pay periods .
160) Box 2: Enter the total amount of federal income tax withheld for a full year by multiplying the amount
of federal tax withheld on your pay stub by the appropriate number of pay periods .
( C ) Box 3: Social Security taxes are taken only up to a certain amount of pay, and this amount changes
every year . For the purpose of this project , use $ 120,000 as the limit .*
If the amount in Box. I is less than or equal to $ 120 ,000 , then Enter the amount in Box 1 into Box
If the amount in Box. I is greater than $ 120,000 , then enter $ 120 , 000 into Box 3.
(` ) Box 4 : Enter the total amount of Social Security tax withheld , which is 6 . 2%! of the amount in Box 3
12 Inc . All rights reserved .
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or distributing without <i Z's written consent is prohibited .
Math / Graded Assignment | Unit Project! Pay and Tand
( @ ) Box 5: Enter the annual mean wage , from slide 1 . ( Notes : Unlike Social Security , there is no limit on
how much Medicare tax is taken out . Also , in the real world , this amount can be larger than the
amount in Box I if your employer contributed money to your retirement plan . !
( F ) Box : Enter the total amount of Medicare tax withheld , which is 1. 45% of the amount in Box 5 .
(`) Box 13: If you chose retirement as a voluntary deduction on your pay stub , then type an* in the
appropriate spot .
(h) Box 16 : Enter the amount in Box 1 .
( 1) Box 17 : We are assuming a 3% state income tax , so enter 3%/6 of the amount in Box 16 into Box 17 .

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