--- title: Wages Worksheet description: Holistiplan's Wages Worksheet allows you to enter gross wages and elective pre-tax deferrals to arrive at taxable income. --- [Skip to content](https://help.holistiplan.com/how-do-i-use-the-wages-worksheet#main-content) English Show submenu for translations [More support](https://help.holistiplan.com/kb-tickets/new?hsLang=en) [![Holistiplan Logo (800x200 px).webp\]](https://help.holistiplan.com/hs-fs/hubfs/Holistiplan%20Logo%20(800x200%20px).webp?width=160&height=40&name=Holistiplan%20Logo%20(800x200%20px).webp)](https://www.holistiplan.com/) Open main navigation Close main navigation - English Show submenu for translations - [More support](https://help.holistiplan.com/kb-tickets/new) Holistiplan Knowledge Base - There are no suggestions because the search field is empty. 1. [Help Center](https://help.holistiplan.com/?hsLang=en) 2. [Scenario Analysis](https://help.holistiplan.com/scenario-analysis?hsLang=en) 3. [Wages](https://help.holistiplan.com/scenario-analysis?hsLang=en#wages) # Wages Worksheet ## The Wages Worksheet is the central hub for entering all forms of W-2 compensation, including base salary, bonuses, and equity-based pay. This worksheet calculates taxable income, FICA/Medicare taxes, and elective deferrals. By default, Holistiplan displays a combined total in the **Wages from 1040 Line 1** field based on the uploaded return. - **To enable per-taxpayer entry:** The **Wages from 1040 Line 1** field must be completely cleared. This means the field must be completely ***blank***; entering "0" will keep the individual taxpayer rows hidden. ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Jul-02-2026-01-32-17-3692-PM.png?width=670&height=685&name=image-png-Jul-02-2026-01-32-17-3692-PM.png) ### **Projecting Income (The Income Annualizer)** When a scenario requires projecting full-year income based on a mid-year paystub, the **Income Annualizer** tool can provide the necessary calculations. - **Access:** Select the **Income Annualizer** link located at the top of each taxpayers' respective column of the Wages Worksheet. - **Functionality:** Inputting Year-to-Date (YTD) totals and the Pay Period End Date allows the system to extrapolate those figures into a full 12-month projection. - **Application:** Once the projection is calculated, the **Apply to Worksheet** button pushes the annualized Gross Wages, Pre-tax Deferrals, and Withholding directly into the respective Taxpayer 1 or Taxpayer 2 columns. Learn more about the Income Annualizer and Pay Stub Scanner here: **[Income Annualizer](https://help.holistiplan.com/income-annualizer?hsLang=en) **and **[Pay Stub Scanner](https://help.holistiplan.com/paystub-scanner?hsLang=en).** ### **Mapping Compensation Types** The following table provides the correct placement for common W-2 and paystub line items to ensure accurate tax modeling. | **Compensation Type** | **Entry Field** | **Tax Impact** | | --- | --- | --- | | **Salary / Hourly** | Gross Wages | Subject to Income Tax & FICA | | **Qualified Overtime** | Qualified Overtime Income | Subject to Income Tax & FICA; possible OBBBA deduction | | **Qualified Tips** | Qualified Tip Income | Subject to Income Tax & FICA; possible OBBBA deduction | | **Annual Bonus** | Bonus | Added to Gross; Subject to Income Tax & FICA | | **RSU vesting; Bargain element of Non-qualified ** | RSUs | Added to Gross; Subject to Income Tax & FICA | | ** Bargain element of Non-qualified   Stock Option Exercise** |  NQSOs | Added to Gross; Subject to Income Tax & FICA | | **Pre-tax 401k/403b/457/401a Plan Contributions** | Pre-tax Retirement Deferrals (401k/403b/SIMPLE) | Reduces Income Tax; **Still subject to FICA** | | **HSA /FSA/Health, Medical, and Dental Premiums ([Section 125 Plans](https://www.irs.gov/government-entities/federal-state-local-governments/faqs-for-government-entities-regarding-cafeteria-plans))** | Section 125 / Other Pre-tax Deds. Not Subject to FICA | Reduces Income Tax & FICA | | **Non-Qualified Deferred Compensation (NQDC) Distributions** | Deferred Compensation Distributions | Subject to Income Tax; **Exempt from FICA** | The chart below may be a useful reference as a reminder of which taxes are applicable to various forms of wage income. ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Feb-03-2026-03-11-00-1433-PM.png?width=670&height=260&name=image-png-Feb-03-2026-03-11-00-1433-PM.png) ### **FICA and Medicare Exemption Logic** For cases involving clergy, certain government employees, or specific visa holders, wages may be exempt from standard payroll taxes. The worksheet includes specific toggles for these scenarios. - **Wages Exempt from Social Security Payroll Tax:** Selecting this checkbox prevents the calculation of the 6.2% Social Security tax on the entered wages. - **Wages Exempt from Medicare Payroll Tax:** Selecting this checkbox prevents the calculation of the 1.45% Medicare tax. ### **Understanding Calculated Fields** Holistiplan uses the data entered to populate two fields, each of which is outlined in red in the accompanying screenshot. These fields are read-only and update in real-time. ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Jul-02-2026-01-33-38-9617-PM.png?width=733&height=731&name=image-png-Jul-02-2026-01-33-38-9617-PM.png)   #### **Wages Used In Income Tax Calculations** This represents the final figure flowing to **Form 1040, Line 1**. - **The Formula:** \[Gross Wages\] + \[Qualified Tips\] + \[Qualified Overtime\] + \[Bonus\]— \[Pre-tax Savings Deferrals\] — \[Other Pre-Tax Deductions Subject to FICA\] -  \[Pre-tax Section 125 Deductions\]+ \[RSUs/NQSOs\]  + \[Non-Qualified Deferred Compensation\] . #### **Medicare Wages (Form 8959 Line 1)** This field determines if the taxpayer is subject to the 0.9% Additional Medicare Tax. - **The Formula:** \[Gross Wages\] — \[Pre-tax Section 125 Deductions\] + \[Annual Bonus\] + \[RSUs/NQSOs\] + \[Qualified Tips\] + \[Non-Qualified Deferred Compensation\]. - **Note:** Unlike taxable wages, **Pre-tax Savings Deferrals** (e.g., 401k contributions) do not reduce Medicare wages ### **Modeling Additional Medicare Tax** Once wages are assigned to a specific taxpayer, the system automatically calculates payroll taxes: - **Social Security:** Calculated at 6.2% up to the annual wage base. - **Medicare:** Calculated at 1.45% on all Medicare wages. **Additional Medicare Tax (Form 8959):** To ensure this 0.9% tax is calculated correctly for high earners, the **Medicare Wages** override field (Form 8959 Line 1) must be cleared. This allows the system to use the broken-out taxpayer data from the worksheet rather than the 1040 aggregate.   ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Jul-02-2026-01-35-42-3953-PM.png?width=670&height=420&name=image-png-Jul-02-2026-01-35-42-3953-PM.png)   Once that override field is cleared and the box is ***blank***, the Medicare Wages for each taxpayer populate, and the calculated Additional Medicare Tax will adjust accordingly. ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Jul-02-2026-01-37-00-3930-PM.png?width=1105&height=655&name=image-png-Jul-02-2026-01-37-00-3930-PM.png) ### **Tax Withholding** Withholding entered in this worksheet flows directly to the **Withholding** section of the main Scenario Analysis screen. - **Federal Withholding:** Enter the annual projected amount for Federal income tax withheld. - **State Withholding:** Enter the annual projected amount for State income tax withheld. You must select and add the state scenario to be able to add state tax withheld. - **Automation:** If the **Income Annualizer** is used, these fields will be pre-populated with projected totals based on YTD figures. ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Jul-02-2026-01-39-01-5380-PM.png?width=1075&height=259&name=image-png-Jul-02-2026-01-39-01-5380-PM.png) ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Jul-02-2026-01-39-42-1764-PM.png?width=611&height=493&name=image-png-Jul-02-2026-01-39-42-1764-PM.png)   ### **Troubleshooting & FAQ** **Why is the Taxable Wages field different from the gross entry?** The **Taxable Wages** field subtracts **Pre-tax Deferrals** and adds items like **Stock/Bonus** income. It also accounts for **Qualified Overtime** exemptions. **Where are Schedule C or K-1 earnings entered?** These are not W-2 wages. 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