QB Issue Resolution:

“Box 1 reports only $49,750 I do not think this is what should be reported. I think Box 1 should be $59,000.”

That is Correct at $49,750. Your Box 3 & 5 are wrong. It seems yours is set up backwards. You SAVE on income taxes because this is pre-tax deducted and then tax deferred, until you draw from your retirement funds. Then, you are taxed on All withdrawals.

Medicare and SS taxes are applied as this is Payroll. It is not Income Taxed now but is Payroll Taxed.

You can edit your item and Confirm if someone overrode the Defaults, by hitting the Default button.

Edit your item and look at the Tax Tracking notes. I attached a screenshot from the program.
401k.JPG

Resolution for Issue 'Why is W-2 Box 1 showing net (after 401K deduction) rather than gross wages?' available: Yes (Solved).
Source: Intuit Community forum.

Why is W-2 Box 1 showing net (after 401K deduction) rather than gross wages?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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