Hello All
We are facing a tricky situation with Deferred Comp Deductions on W-2 and wanted to know anyone faced such issue in the past and if yes, what was the resolution.
Employee is working in NY and residing in CT. His base salry is deferred by X percentage and he also have Deferred comp bonus with some Y percentage. Percentages are calculated without any issues. However, the taxable earnings /701 is differing between NY and CT and the same is showing on the W2. We are expecting the taxable earnings for both the states should be same and without deferred comp earnings for both the states and also box 1 should be without differ comp deductions.
1. Is our assumption right?
2. If yes, why the /701 is differing from resident state to work state? FYI, resident state taxable earnings are showing high in our case
3. if /701 should be different for both states and which state earnings should show on box 1 in w2 is it resident or work state?
Early response is much appreciated!
Thanks!
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