1) Jeff's question as to whether your client is an S-Corp shareholder remains unanswered.  AND the answer is important.

2) Do some math on SS & Medicare.... are they being computed on the $ 8K or the $ 10K.

If I were a bettin' person, I'd bet the W-2 is wrong.  Is it from a business doing it's own payroll, or from a payroll processing company?  (not that a p/r processing company doesn't get things wrong..)