Report flags / W-2
NUMBERS“Medicare tax doesn't match Medicare wages”
What this flag on a W-2 means, why it matters, and what to check.
What it means
Box 6 isn't 1.45% of box 5, plus 0.9% on wages above $200,000.
Why it matters
Like Social Security, the rate is fixed, so edited wages stop matching the tax.
Ordinary explanations
- Rounding of a dollar or two (that's not flagged).
What to check
Ask the applicant for the IRS wage and income transcript (free at irs.gov or with Form 4506-T), which lists W-2 amounts as the employer reported them.
A flag is a reason to verify with the source, not proof. Apply the same steps to every applicant.
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