What Is Box 3 on a W2

Box 3: Social Security wages. Box 3 reports the total amount of wages subject to the Social Security tax. … The Social Security tax is a flat tax rate of 6.2% on your wage income, up to a maximum wage base of $106,800 (for 2010).

What does Box 3 on W-2 include?

Box 3 shows your total wages subject to the Social Security tax. This figure is calculated before any payroll deductions which means that the amount in box 3 could be higher than the number reported in box 1, as in my example.

What is the difference between Box 1 and Box 3 on my W-2?

Box 1 reports your total taxable wages or salary for federal income tax purposes. The number includes your wages, salary, tips you reported, bonuses and other taxable compensation. … Box 3 reports the total amount of your wages subject to Social Security tax.