Q: Why does box 3 or box 7 of the W-2 form show last year's maximum social security wages or tips limit?

A: Your tax table may be incorrect. Check the payroll tax table you are using.

If the wage limit for box 3 or box 7 is not correct for the year of the W-2 form, you need a tax table for the year following the tax year of the W-2. For example, to do W-2 forms for 1997, you should be using a 1998 tax table.