> ## Documentation Index
> Fetch the complete documentation index at: https://developer.tryfinch.com/llms.txt
> Use this file to discover all available pages before exploring further.

# W-2 Box 1

> Finch's data can be used to run an individual's W-2 Box 1 calculation using data returned from Finch Pay endpoints.

**Box 1 is defined in the IRS' ["2024 General Instructions for Forms W-2 and W-3" published guidance](https://www.irs.gov/pub/irs-pdf/iw2w3.pdf) as:**

> Wages, tips, other compensation. Show the total taxable wages, tips, and other compensation that you paid to your employee during the year. However, do not include elective deferrals (such as employee contributions to a section 401(k) or 403(b) plan) except section 501(c) (18) contributions.
> Include the following. 1. Total wages, bonuses (including signing bonuses), prizes, and awards paid to employees during the year. See Calendar year basis. 2. Total noncash payments, including (...) 24. Salary reduction contributions made to a Roth IRA pursuant to a SEP arrangement or SIMPLE IRA plan. See SEP arrangements and SIMPLE IRA plans.

### Tabulated IRS criteria:

| #  | IRS Text                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | <Tooltip tip="Finch research">Occurence</Tooltip>                                                                                  | <Tooltip tip="Finch Pay Statement object group">Group</Tooltip>               |
| -- | :---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- | :---------------------------------------------------------------------------- |
| 1  | "Total wages, bonuses (including signing bonuses), prizes, and (...) <Tooltip tip="Total wages, bonuses (including signing bonuses), prizes, and awards paid to employees during the year. See Calendar year basis.">full text</Tooltip>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | <Tooltip tip="this is standard pay">ALWAYS</Tooltip>                                                                               | [Earning](/how-finch-works/unified-employment-api-glossary#earning)           |
| 2  | "Total noncash payments, including certain fringe benefits. See Fringe benefits."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | <Tooltip tip="examples include a cell phone allowance, etc.">COMMON</Tooltip>                                                      | [Earning](/how-finch-works/unified-employment-api-glossary#earning)           |
| 3  | "Total tips reported by the employee to the employer (not allocated tips)."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | <Tooltip tip="examples include waiters, cleaners, any service industry">COMMON</Tooltip>                                           | [Earning](/how-finch-works/unified-employment-api-glossary#earning)           |
| 4  | "Certain employee business expense reimbursements. See Employee business expense reimbursements."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | <Tooltip tip="reimbursements for gas, mileage, etc.">COMMON</Tooltip>                                                              | [Earning](/how-finch-works/unified-employment-api-glossary#earning)           |
| 5  | "The cost of accident and health insurance premiums for 2%-or-more shareholder-employees paid by an S corporation."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | <Tooltip tip="this only applies to 2%-or-more shareholder-employees">RARE</Tooltip>                                                | [Contribution](/how-finch-works/unified-employment-api-glossary#contribution) |
| 6  | "Taxable benefits from a section 125 (cafeteria) plan if the employee chooses cash."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | <Tooltip tip="when company has an allowance for health insurance in lieu of health benefits ($500/monhth)">RARE</Tooltip>          | [Contribution](/how-finch-works/unified-employment-api-glossary#contribution) |
| 7  | "Employee contributions to an Archer MSA."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | <Tooltip tip="will not happen in a typical payroll system: self employed situation">N/A</Tooltip>                                  | [Deduction](/how-finch-works/unified-employment-api-glossary#deduction)       |
| 8  | "Employer contributions to an Archer MSA if includible in the income of the employee. See Archer MSA."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | <Tooltip tip="will not happen in a typical payroll system: self employed situation">N/A</Tooltip>                                  | [Contribution](/how-finch-works/unified-employment-api-glossary#contribution) |
| 9  | "Employer contributions for qualified long-term care services to the extent (...) <Tooltip tip="Employer contributions for qualified long-term care services to the extent that such coverage is provided through a flexible spending or similar arrangement.">full text</Tooltip>                                                                                                                                                                                                                                                                                                                                                                                                                                            | <Tooltip tip="qualified disability">RARE</Tooltip>                                                                                 | [Contribution](/how-finch-works/unified-employment-api-glossary#contribution) |
| 10 | "Taxable cost of group-term life insurance in excess of \$50,000. See Group-term life insurance."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | <Tooltip tip="most will be over depending on average company compensation">COMMON</Tooltip>                                        | [Contribution](/how-finch-works/unified-employment-api-glossary#contribution) |
| 11 | "Unless excludable under Educational assistance programs, payments for (...) <Tooltip tip="Unless excludable under Educational assistance programs, payments for non-job-related education expenses or for payments under a nonaccountable plan. See Pub. 970.">full text</Tooltip>                                                                                                                                                                                                                                                                                                                                                                                                                                           | <Tooltip tip="i.e. student loan reimbursement">COMMON</Tooltip>                                                                    | [Earning](/how-finch-works/unified-employment-api-glossary#earning)           |
| 12 | “The amount includible as wages because you paid your employee’s share of social security and (...) <Tooltip tip="The amount includible as wages because you paid your employee’s share of social security and Medicare taxes (or railroad retirement taxes, if applicable). See Employee’s social security and Medicare taxes (or railroad retirement taxes, if applicable) paid by employer. If you also paid your employee’s income tax withholding, treat the grossed-up amount of that withholding as supplemental wages and report those wages in boxes 1, 3, 5, and 7. (Use box 14 if railroad retirement taxes apply.) No exceptions to this treatment apply to household or agricultural wages.">full text</Tooltip> | <Tooltip tip="standard taxes withheld by employer">ALWAYS</Tooltip>                                                                | [Tax](/how-finch-works/unified-employment-api-glossary#tax)                   |
| 13 | "Designated Roth contributions made under a section 401(k) plan, a section 403(b) salary (...) <Tooltip tip="Designated Roth contributions made under a section 401(k) plan, a section 403(b) salary reduction agreement, or a governmental section 457(b) plan. See Designated Roth contributions.">full text</Tooltip>                                                                                                                                                                                                                                                                                                                                                                                                      | <Tooltip tip="Roth 401k">COMMON</Tooltip>                                                                                          | [Deduction](/how-finch-works/unified-employment-api-glossary#deduction)       |
| 14 | "Distributions to an employee or former employee from an NQDC plan (including a rabbi trust) or a nongovernmental section 457(b) plan."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | <Tooltip tip="deferred compensation; only relevant for a HNW indivdual that can optionally defer income">RARE</Tooltip>            | [Earning](/how-finch-works/unified-employment-api-glossary#earning)           |
| 15 | "Amounts includible in income under section 457(f) because the amounts are no longer subject to a substantial risk of forfeiture."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | <Tooltip tip="for individuals that are no longer at substantial risk of forfeiture under section 457(f).">RARE</Tooltip>           | [Earning](/how-finch-works/unified-employment-api-glossary#earning)           |
| 16 | "Payments to statutory employees who are subject to social security and Medicare taxes but (...) <Tooltip tip="Payments to statutory employees who are subject to social security and Medicare taxes but not subject to federal income tax withholding must be shown in box 1 as other compensation. See Statutory employee.">full text</Tooltip>                                                                                                                                                                                                                                                                                                                                                                             | <Tooltip tip="industry specific for statutory employee: contracted salesman, selling on behalf of wholesaler, etc.">RARE</Tooltip> | [Earning](/how-finch-works/unified-employment-api-glossary#earning)           |
| 17 | "Cost of current insurance protection under a compensatory split-dollar life insurance arrangement."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | <Tooltip tip="state individual level">RARE</Tooltip>                                                                               | [Contribution](/how-finch-works/unified-employment-api-glossary#contribution) |
| 18 | "Employee contributions to a health savings account (HSA)."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | COMMON                                                                                                                             | [Deduction](/how-finch-works/unified-employment-api-glossary#deduction)       |
| 19 | "Employer contributions to an HSA if includible in the income of the employee. See Health savings account (HSA)."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | COMMON                                                                                                                             | [Contribution](/how-finch-works/unified-employment-api-glossary#contribution) |
| 20 | "Amounts includible in income under section 409A from an NQDC because the amounts are (...) <Tooltip tip="Amounts includible in income under section 409A from an NQDC because the amounts are no longer subject to a substantial risk of forfeiture and were not previously included in income. See Nonqualified deferred compensation plans under Special Reporting Situations for Form W-2.">full text</Tooltip>                                                                                                                                                                                                                                                                                                           | <Tooltip tip="deferred compensation; only relevant for a HNW indivdual that can optionally defer income">RARE</Tooltip>            | [Earning](/how-finch-works/unified-employment-api-glossary#earning)           |
| 21 | "Nonqualified moving expenses and expense reimbursements. See Moving expenses."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | <Tooltip tip="reimbursements for moving">COMMON</Tooltip>                                                                          | [Earning](/how-finch-works/unified-employment-api-glossary#earning)           |
| 22 | "Payments made to former employees while they are on active duty in the U.S. Armed Forces or other uniformed services."                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | <Tooltip tip="relevant for industries that commonly employ active duty US Armed Forces members">RARE</Tooltip>                     | [Earning](/how-finch-works/unified-employment-api-glossary#earning)           |
| 23 | "All other compensation, including certain scholarship and fellowship grants (...) <Tooltip tip="All other compensation, including certain scholarship and fellowship grants. See Scholarship and fellowship grants. Other compensation includes taxable amounts that you paid to your employee from which federal income tax was not withheld. You may show other compensation on a separate Form W-2. See Multiple forms.">full text</Tooltip>                                                                                                                                                                                                                                                                              | <Tooltip tip="scholarships for continuing education etc.">COMMON</Tooltip>                                                         | [Earning](/how-finch-works/unified-employment-api-glossary#earning)           |
| 24 | "Salary reduction contributions made to a Roth IRA pursuant to a SEP arrangement or (...) <Tooltip tip="Salary reduction contributions made to a Roth IRA pursuant to a SEP arrangement or SIMPLE IRA plan. See SEP arrangements and SIMPLE IRA plans.">full text</Tooltip>                                                                                                                                                                                                                                                                                                                                                                                                                                                   | <Tooltip tip="--------">RARE</Tooltip>                                                                                             | [Deduction](/how-finch-works/unified-employment-api-glossary#deduction)       |

### Finch implementation:

**All of the information necessary to run an individual’s W-2 Box 1 calculation can be found in [Finch’s Pay Statement data](/api-reference/payroll/pay-statement).**

The table above highlights where to find criteria within [Pay Statement object groups (Earning, Tax, Deduction, Contribution)](/api-reference/payroll/pay-statement). The majority of these criteria require simple summing of line-item-amounts over a given calendar year - [Finch’s type classification](/developer-resources/Pay-Statement-Type-Classification#pay-statement-type-classification) is invaluable for properly aggregating criteria values.

### Nuanced criteria guidance:

10. Calculate per pay-period OR on 12/31 check - determine the cost of group-term life insurance provided over the \$50,000 income exclusion threshold.

Want to talk through how to do this with a Finch teammate? Reach out to your DSE or AM.

***this general guidance must be used at the discretion of Finch's developers***