What are Gross, Taxable, and Subject To wages?
Description
Cause

Terminology can differ between state and federal government agencies

Resolution

Verify that the reports you are running are using the same Date conditions. Many reports that include Gross Pay are based on Period end dates, while tax reports and government forms are based on check dates.

Payroll Gross pay includes:

  • Regular pays
  • Overtime pays
  • Other pays
  • Cash Fringe Pays

Payroll calculates Taxable wages:

  • Gross earnings - [Exempt pays + Pre-tax deductions].

Payroll calculates Subject-to wages:

  • Taxable wages up to the tax limit.

Note: The terms' definitions here may differ from the definitions used on federal, state or local tax forms. Contact a certified tax specialist for specific information about your forms.

DocLink: My quarterly report amounts are incorrect
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