Wages exempt from income taxes

[Bart]

Why would wages be exempt from income taxes?  I have a W-2 from ADP that is blank in Box 1 and two and has amounts in boxes 3, 4, 5 and 6.  In the earnings summary provided by ADP it shows gross pay for the amounts in box 3 and 5 then it subtracts out "Exempt Wages"  of the same amount to get a zero balance.

[Lee B]

The only thing I can think of is a deceased employee's accruable wages paid in the same year as the employees's death.

[Medlin Software, Dennis]

All wages allocated to retirement or similar Box 1 exempted?  If the state wage box is also 0 (except PA), then retirement or similar seems logical.  IIRC (and NOT something I deal with) a deceased employee's wages paid after death go to the estate and are 1099'd (and depending on the timing, also on the employee W2).

[Possi]

Is it disability? 

[BulldogTom]

I am thinking like Possi.   Some kind of 3rd party supplemental disability insurance purchased by the employee?  

Tom
Modesto, CA

[Lion EA]

Ask your client.

[Max W]

Some tax treaties allow an exemption from withholding.  The exemption is claimed on form 8233.