diff --git a/zio-schema-derivation/shared/src/test/scala/zio/schema/DeriveSchemaSpec.scala b/zio-schema-derivation/shared/src/test/scala/zio/schema/DeriveSchemaSpec.scala
index 189ef9f1f..04cae53f6 100644
--- a/zio-schema-derivation/shared/src/test/scala/zio/schema/DeriveSchemaSpec.scala
+++ b/zio-schema-derivation/shared/src/test/scala/zio/schema/DeriveSchemaSpec.scala
@@ -552,59 +552,15 @@ object DeriveSchemaSpec extends ZIOSpecDefault with VersionSpecificDeriveSchemaS
         assert(derived)(hasSameSchema(expected))
       },
       test(
-        "correctly derives schema for sealed trait with intermediate traits, having leaf classes"
+        "correctly derives schema for sealed trait with intermediate traits, having leaf classes for Scala2"
       ) {
-        val derived: Schema.Enum2[TraitLeaf.type, MiddleTrait, TraitWithMiddleTrait] =
-          DeriveSchema.gen[TraitWithMiddleTrait]
-
-        val middleTraitLeafSchema = Schema.CaseClass0(
-          TypeId.fromTypeName("zio.schema.DeriveSchemaSpec.MiddleTraitLeaf"),
-          () => MiddleTraitLeaf,
-          Chunk.empty
-        )
-        val middleTraitLeafCase = Schema.Case[MiddleTrait, MiddleTraitLeaf.type](
-          "MiddleTraitLeaf",
-          middleTraitLeafSchema,
-          (a: MiddleTrait) => a.asInstanceOf[MiddleTraitLeaf.type],
-          (a: MiddleTraitLeaf.type) => a.asInstanceOf[MiddleTrait],
-          (a: MiddleTrait) => a.isInstanceOf[MiddleTraitLeaf.type]
-        )
-        val middleTraitSchema = Schema.Enum1[MiddleTraitLeaf.type, MiddleTrait](
-          TypeId.parse("zio.schema.DeriveSchemaSpec.MiddleTrait"),
-          middleTraitLeafCase,
-          Chunk(simpleEnum(automaticallyAdded = true))
-        )
-
-        val traitLeafSchema = Schema.CaseClass0(
-          TypeId.fromTypeName("zio.schema.DeriveSchemaSpec.TraitLeaf"),
-          () => TraitLeaf,
-          Chunk.empty
-        )
-        val traitLeafCase = Schema.Case[TraitWithMiddleTrait, TraitLeaf.type](
-          "TraitLeaf",
-          traitLeafSchema,
-          (a: TraitWithMiddleTrait) => a.asInstanceOf[TraitLeaf.type],
-          (a: TraitLeaf.type) => a.asInstanceOf[TraitWithMiddleTrait],
-          (a: TraitWithMiddleTrait) => a.isInstanceOf[TraitLeaf.type]
-        )
-
-        val middleTraitCase = Schema.Case[TraitWithMiddleTrait, MiddleTrait](
-          "MiddleTrait",
-          middleTraitSchema,
-          (a: TraitWithMiddleTrait) => a.asInstanceOf[MiddleTrait],
-          (a: MiddleTrait) => a.asInstanceOf[TraitWithMiddleTrait],
-          (a: TraitWithMiddleTrait) => a.isInstanceOf[MiddleTrait]
-        )
-
-        val expected =
-          Schema.Enum2[TraitLeaf.type, MiddleTrait, TraitWithMiddleTrait](
-            TypeId.parse("zio.schema.DeriveSchemaSpec.TraitWithMiddleTrait"),
-            traitLeafCase,
-            middleTraitCase
-          )
-
-        assert(derived)(hasSameSchema(expected))
-      },
+        intermediateTraitTest(enum2Annotations = Chunk.empty)
+      } @@ TestAspect.scala2Only,
+      test(
+        "correctly derives schema for sealed trait with intermediate traits, having leaf classes for Scala3"
+      ) {
+        intermediateTraitTest(enum2Annotations = Chunk(simpleEnum(automaticallyAdded = true)))
+      } @@ TestAspect.scala3Only,
       test(
         "correctly derives schema for abstract sealed class with intermediate subclasses, having case class leaf classes"
       ) {
@@ -658,4 +614,63 @@ object DeriveSchemaSpec extends ZIOSpecDefault with VersionSpecificDeriveSchemaS
     ),
     versionSpecificSuite
   )
+
+  // Needed as I think is an unrelated existing bug in Scala 3 DeriveSchema whereby it adds simpleEnum annotation at the
+  // top level of the EnumN schema when one of the cases is a simple enum - however this does not happen with the Scala 2 macro.
+  // I think the Scala2 behavior is correct ie this should be a the leaf schema level.
+  // Create issue https://github.com/zio/zio-schema/issues/750 to track this
+  private def intermediateTraitTest(enum2Annotations: Chunk[Annotation]) = {
+    val derived: Schema.Enum2[TraitLeaf.type, MiddleTrait, TraitWithMiddleTrait] =
+      DeriveSchema.gen[TraitWithMiddleTrait]
+
+    val middleTraitLeafSchema = Schema.CaseClass0(
+      TypeId.fromTypeName("zio.schema.DeriveSchemaSpec.MiddleTraitLeaf"),
+      () => MiddleTraitLeaf,
+      Chunk.empty
+    )
+    val middleTraitLeafCase = Schema.Case[MiddleTrait, MiddleTraitLeaf.type](
+      "MiddleTraitLeaf",
+      middleTraitLeafSchema,
+      (a: MiddleTrait) => a.asInstanceOf[MiddleTraitLeaf.type],
+      (a: MiddleTraitLeaf.type) => a.asInstanceOf[MiddleTrait],
+      (a: MiddleTrait) => a.isInstanceOf[MiddleTraitLeaf.type]
+    )
+    val middleTraitSchema = Schema.Enum1[MiddleTraitLeaf.type, MiddleTrait](
+      TypeId.parse("zio.schema.DeriveSchemaSpec.MiddleTrait"),
+      middleTraitLeafCase,
+      Chunk(simpleEnum(automaticallyAdded = true))
+    )
+
+    val traitLeafSchema = Schema.CaseClass0(
+      TypeId.fromTypeName("zio.schema.DeriveSchemaSpec.TraitLeaf"),
+      () => TraitLeaf,
+      Chunk.empty
+    )
+    val traitLeafCase = Schema.Case[TraitWithMiddleTrait, TraitLeaf.type](
+      "TraitLeaf",
+      traitLeafSchema,
+      (a: TraitWithMiddleTrait) => a.asInstanceOf[TraitLeaf.type],
+      (a: TraitLeaf.type) => a.asInstanceOf[TraitWithMiddleTrait],
+      (a: TraitWithMiddleTrait) => a.isInstanceOf[TraitLeaf.type]
+    )
+
+    val middleTraitCase = Schema.Case[TraitWithMiddleTrait, MiddleTrait](
+      "MiddleTrait",
+      middleTraitSchema,
+      (a: TraitWithMiddleTrait) => a.asInstanceOf[MiddleTrait],
+      (a: MiddleTrait) => a.asInstanceOf[TraitWithMiddleTrait],
+      (a: TraitWithMiddleTrait) => a.isInstanceOf[MiddleTrait]
+    )
+
+    val expected =
+      Schema.Enum2[TraitLeaf.type, MiddleTrait, TraitWithMiddleTrait](
+        TypeId.parse("zio.schema.DeriveSchemaSpec.TraitWithMiddleTrait"),
+        traitLeafCase,
+        middleTraitCase,
+        enum2Annotations
+      )
+
+    assert(derived)(hasSameSchema(expected))
+  }
+
 }