They basically thought that my income had state taxes taken out of it but they did the wrong state taxes. So they have paid extra state taxes now because they have to pay taxes for me but it makes my gross income higher since they had to pay more in taxes then they thought they had to. This puts me in a different tax bracket for one, but for two it also leaves me with extra state taxes to claim.

Basically they paid me for my state which doesn't have state taxes. However they have to pay my state taxes now and technically they should have taken them out of my pay. But since they didn't and believe it was their error, that means my gross pay is different as when you add in the state taxes its way over what the W-2 said was my income.