Payroll question (I don’t work payroll)

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Payroll Question (I do not work in payroll)

Hi, I work in Sales and I had a bad year last year due to the pandemic. I worked all year in my company and had a minimal commission since I did not reach my goals. On my tax return, my annual pre-tax compensation is less than the base salary in my offer letter. Is this something that could normally happen? I’ve always worked base + commission jobs and I’ve always produced, so this is the first type of situation I’ve been in like this. I am thankful that my company supported me through the pandemic, so I don’t know if it is something I should address or if I am very ignorant about how they pay me. Again, this was before taxes, withdrawals, etc. # which is below my base, I understand that after tax it will be reflected accordingly.

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This thread was originally published on 2021-04-13 10:53:04.

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3 thoughts on “Payroll question (I don’t work payroll)”

  1. On your tax return or your W2? Your gross income on your w2 box 1 will be your gross minus qualifying deductions like healthcare and retirement.

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  2. did you have any period where you were unpaid/on furlough?

    how large is the difference (%)?

    Has anything changed in your compensation plan since your offer letter?

    Where are you getting your annual base paid? You aren’t looking at box 1 W-2 wages, are you? Because that’s not the amount before taxes….but rather after any pre-tax amounts like health insurance deductions or retirement contributions. Generally your base pay isn’t on your W-2 anywhere (since FICA might also be lowered for FSA type contributions)

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