Monday, March 3, 2014

Take the Headache Out of W-2 Corrections

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Now that your 2013 Forms W-2 have all been delivered the last thing anyone wants is an inaccurate W-2 form. If by some chance one of your employees does find a mistake, the correction process does not have to be a headache. The first thing to do is double check to ensure there is indeed an error. If there is, the procedure for a correction depends on whether or not you have filed your company’s W-2 forms with the Social Security Administration (SSA):

  • If you have not yet filed with the SSA, simply provide the employee with a corrected Form W-2, and make the correction in your file before sending it to the SSA.
  • If the error is reported to you after you have sent the file to the SSA, you will need to create a W-2c for the employee and for the SSA to correct the file you’ve submitted.

It is also important to remember that any time you need to correct a Form W-2, whether it’s a corrected W-2 or a W-2c, there is a good possibility you will need to also correct one or more of your 941s for the reporting year. You must file a 941-X for each quarter that needs correcting. Depending on what the correction is, your Form 940 may need to be corrected as well. To do that, just file an amended Form 940 with the IRS.

Following these simple steps can ensure you stay compliant this tax season. Continue to watch Pay News Now for more great payroll tips!