Bart Posted August 1, 2019 Report Share Posted August 1, 2019 Why would wages be exempt from income taxes? I have a W-2 from ADP that is blank in Box 1 and two and has amounts in boxes 3, 4, 5 and 6. In the earnings summary provided by ADP it shows gross pay for the amounts in box 3 and 5 then it subtracts out "Exempt Wages" of the same amount to get a zero balance. Quote Link to comment Share on other sites More sharing options...
Lee B Posted August 1, 2019 Report Share Posted August 1, 2019 The only thing I can think of is a deceased employee's accruable wages paid in the same year as the employees's death. Quote Link to comment Share on other sites More sharing options...
Medlin Software, Dennis Posted August 1, 2019 Report Share Posted August 1, 2019 All wages allocated to retirement or similar Box 1 exempted? If the state wage box is also 0 (except PA), then retirement or similar seems logical. IIRC (and NOT something I deal with) a deceased employee's wages paid after death go to the estate and are 1099'd (and depending on the timing, also on the employee W2). Quote Link to comment Share on other sites More sharing options...
Possi Posted August 1, 2019 Report Share Posted August 1, 2019 Is it disability? 1 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted August 2, 2019 Report Share Posted August 2, 2019 I am thinking like Possi. Some kind of 3rd party supplemental disability insurance purchased by the employee? Tom Modesto, CA Quote Link to comment Share on other sites More sharing options...
Lion EA Posted August 2, 2019 Report Share Posted August 2, 2019 Ask your client. 1 Quote Link to comment Share on other sites More sharing options...
Max W Posted August 2, 2019 Report Share Posted August 2, 2019 Some tax treaties allow an exemption from withholding. The exemption is claimed on form 8233. Quote Link to comment Share on other sites More sharing options...
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