State Wages (Box 16) and/or Local Wages (Box 18) do not match the Federal Wages (Box 1) on Payroll W2 Forms
1. The wrong State/Local Wage amounts were initialized incorrectly when setting up a new employee in PR Employee Maintenance (02.250.00).
2. A Net Check was created in PR Net Check Entry (02.080.00) without the correct State/Local Deduction ID attached in Earnings Type Maintenance (02.270.00).
3. A Pension exemption is attached to the Federal deduction but is not attached to the State/Local deduction.
4. A Pension Exemption is attached to the State/Local deduction but the setup is incorrect (Examples: 'Reduce Net Pay' not checked, the Exemption Amt is incorrect).
5. A PR Manual Check (02.040.00) was entered but the Earnings Subject to Deduction field (EarnSubj) was not populated correctly in the Deduction grid.
6. The 401k amount inReview/Edit Check(02.030.00) was overridden. If the Pension is Exempt from State/Local wages then the State/Local wage will need to be initialized.
7. The wrong State Deduction ID was attached to an Earnings Type.
Resolution 1 - The standard method of correction is to:
A. Initialize Employee History (02.060.00) wages and recalculate Employee W-2 History (02.260.00)
B. Initialize Employee W-2 History directly.
Resolution 2 - If the State/Local Wages are supposed to be the same as the Federal Wages then an alternative to Initializing (See Resolution 1) is to run an update script to force the State/Local Wages to equal the Federal Wages.
Note The following script will not update Employee History or the EARNDED table. Instead, It will update the W2STATELOCAL table so that the State/Local Wages areequal to the W2FEDERAL Wages. The W2STATELOCAL table is used to print W-2s anddisplay in W-2 History.
1. Make a BACKUP of the Application database that can be restored in case an undesired data loss occurs.
2. Access Query Analyzer and run the following statement against the appropriate Application Database:
SET s.Wages = f.Fed_Wages
from W2STATELOCAL s, W2FEDERAL f
where s.EmpID = f.EmpID
and s.CalYr = f.CalYr and s.EntityID = 'XXXX'and s.CalYr = 'YYYY'
(whereXXXX = the Deduction ID of the State deduction that needs updated and YYYY = Calendar year the W2s are being run for)
3. ReviewtheEmployee W-2 History to confirm the amounts are now correct. If correct, print W-2s when desired.
Note - See Knowledge Base Article 875633 for further information on possible causes of incorrect W-2 State Wages.
kw: state wages, tips, etc., other compensation
This article was TechKnowledge Document ID:136576
Article ID: 848521 - Last Review: May 27, 2016 - Revision: 1
Microsoft Dynamics SL 2015, Payroll