- Membership
- Certification
- Events
- Community
- About
- Help
Definition of gross amount for tax withholding purposes
April 3, 2023
Q. We made a final wages payment to a deceased employee in the year of death. Social Security and Medicare taxes were withheld. I know that in box 3 we need to report the gross amount of the payment. However, does "gross" mean the amount before pre-tax elections (retirement, health insurance, etc.) are taken out and SS and Medicare taxes are withheld? Or does "gross" mean the taxable wages (amount after pre-tax deductions, but before SS and Medicare taxes are withheld)?
A.
(Answered by IOFM's…
Become A Member
Join IOFM today as a Professional, Business, or Enterprise Member — or upgrade your Starter Membership — to get access to this content and thousands of other Articles, Webinars, Expert Answers, Resource Downloads, and more!
Naturally, this forum doesn’t allow the kind of full information exchange necessary for the Institute of Finance & Management (IOFM) to provide legal advice and the Expert is not a tax attorney in any event. Please understand that the nature of our responses are limited by these constraints as well as the site’s Terms of Use. If you have further questions or suggestions about how we can improve IOFM, please let us know.
Ask The Expert is a member resource of IOFM and all advice provided is subject to site’s Terms of Use.
What are you waiting for?
