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How do I reconcile my last pay stub with my W-2?

Pay Stub Line Itemsintermediate2 answers · 4 min readUpdated February 28, 2026

Quick Answer

Your last pay stub year-to-date totals should match your W-2 boxes within $1-2, but timing differences can create discrepancies. Box 1 (wages) may be lower due to pre-tax deductions like 401(k) contributions, while Box 3 (Social Security wages) caps at $176,100 for 2026. Compare each box systematically to identify legitimate differences versus errors.

Best Answer

SC

Sarah Chen, Payroll Tax Analyst

W-2 employees who want to verify their tax documents are accurate before filing

Top Answer

How to match your pay stub with your W-2


Your final pay stub's year-to-date totals should closely match your W-2, but they won't be identical due to timing and calculation differences. The key is knowing which numbers to compare and why differences occur.


Step-by-step reconciliation process


Step 1: Compare gross wages

  • Pay stub: "Gross Pay YTD" or "Total Earnings YTD"
  • W-2: Box 1 "Wages, tips, other compensation"
  • Expected difference: Box 1 will be LOWER if you have pre-tax deductions

  • Step 2: Check federal tax withheld

  • Pay stub: "Federal Tax YTD" or "FWT YTD"
  • W-2: Box 2 "Federal income tax withheld"
  • Expected difference: Should match within $1-2

  • Step 3: Verify Social Security wages

  • Pay stub: "Social Security YTD" or "SS Wages YTD"
  • W-2: Box 3 "Social Security wages"
  • Expected difference: Box 3 caps at $176,100 for 2026

  • Example: $85,000 salary employee reconciliation



    Common legitimate differences


    Pre-tax deductions reduce W-2 Box 1:

  • 401(k) contributions: $85,000 - $5,100 = $79,900 in Box 1
  • Health insurance premiums: Reduce taxable wages
  • HSA contributions: Lower Box 1 but not Boxes 3 or 5
  • Flexible spending accounts: Reduce all wage boxes

  • Social Security wage cap:

    If you earned over $176,100 in 2026, your pay stub might show $200,000 in gross wages, but W-2 Box 3 will cap at $176,100. This is correct.


    Timing differences:

  • Pay period cutoffs vs. calendar year
  • Bonus payments processed in different periods
  • Retroactive pay adjustments

  • Red flags that indicate errors


  • Federal tax withheld differs by more than $5
  • Social Security tax doesn't equal 6.2% of SS wages (up to cap)
  • Medicare tax doesn't equal 1.45% of Medicare wages
  • State tax withheld significantly different from pay stub
  • Box 1 is HIGHER than your gross pay stub total

  • What you should do


    1. Use our paystub explainer tool to upload both documents for automated comparison

    2. Document any discrepancies with dollar amounts and which boxes are affected

    3. Contact HR or payroll immediately if you find errors - W-2 corrections require Form W-2c

    4. Don't file your taxes until discrepancies are resolved

    5. Keep both documents together in your tax files


    Key takeaway: Most differences between pay stubs and W-2s are legitimate due to pre-tax deductions and timing, but federal tax withheld should match within $1-2. Always verify before filing.

    *Sources: [IRS Publication 15](https://www.irs.gov/pub/irs-pdf/p15.pdf), [Form W-2 Instructions](https://www.irs.gov/pub/irs-pdf/iw2w3.pdf)*

    Key Takeaway: Pay stub and W-2 differences are usually legitimate due to pre-tax deductions, but federal tax withheld should match within $1-2.

    Common pay stub to W-2 reconciliation scenarios

    Pay Stub ItemW-2 BoxShould Match?Common Difference
    Gross Pay YTDBox 1 (Wages)NoBox 1 lower due to pre-tax deductions
    Federal Tax YTDBox 2 (Fed Tax)YesWithin $1-2 rounding
    SS Wages YTDBox 3 (SS Wages)UsuallyBox 3 caps at $176,100
    SS Tax YTDBox 4 (SS Tax)YesShould be 6.2% of Box 3
    Medicare Wages YTDBox 5 (Medicare Wages)YesNo cap on Medicare wages
    Medicare Tax YTDBox 6 (Medicare Tax)UsuallyAdditional 0.9% over $200K

    More Perspectives

    MR

    Marcus Rivera, Compensation & Benefits Analyst

    High-income employees who may hit Social Security wage caps and have complex compensation

    High earner considerations for W-2 reconciliation


    As a high earner, your W-2 reconciliation involves additional complexity due to wage caps, supplemental tax rates, and equity compensation that don't affect typical employees.


    Social Security wage cap impact


    If you earned over $176,100 in 2026, expect these differences:

  • Pay stub gross: Shows full salary (e.g., $250,000)
  • W-2 Box 3: Capped at $176,100
  • W-2 Box 4: Exactly $10,918.20 (6.2% × $176,100)
  • Medicare wages (Box 5): Full $250,000
  • Medicare tax (Box 6): $3,625 base + $900 additional Medicare tax (0.9% on income over $200,000)

  • Bonus and equity compensation reconciliation


    Supplemental income withholding:

    Bonuses are often withheld at the flat 22% supplemental rate, which may differ from your regular withholding rate. A $50,000 bonus shows:

  • Pay stub: $11,000 federal tax withheld (22%)
  • This adds to your W-2 Box 2 total

  • Stock option exercises:

  • ISO exercises: May not appear on current year W-2
  • NQSO exercises: Full spread included in W-2 Box 1
  • RSU vesting: Market value at vest included in wages

  • Additional Medicare tax verification


    For 2026 income over $200,000 (single) or $250,000 (married filing jointly):

  • Calculate: (Total wages - threshold) × 0.9%
  • Example: ($250,000 - $200,000) × 0.9% = $450
  • This should appear in W-2 Box 6 in addition to regular 1.45% Medicare tax

  • Key takeaway: High earners must verify Social Security caps at $176,100, additional Medicare tax on income over $200,000, and proper withholding on bonuses and equity compensation.

    Key Takeaway: High earners must verify Social Security caps at $176,100, additional Medicare tax on income over $200,000, and proper withholding on bonuses and equity compensation.

    Sources

    pay stubw 2payroll reconciliationtax documents

    Reviewed by Sarah Chen, Payroll Tax Analyst on February 28, 2026

    This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.

    How to Reconcile Your Pay Stub with Your W-2 | ExplainMyPaycheck