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Let’s face it: all people makes errors. So, should you make a mistake on an worker’s Type W-2, don’t panic. As an alternative, learn to appropriate a W-2 kind and take motion.
You may appropriate Type W-2 even after submitting it with the Social Safety Administration (SSA). Learn on to study kinds of frequent W-2 errors and easy methods to amend a W-2 based mostly on the kind of mistake.
When do you want a corrected W-2 kind?
It’s good to create an amended W-2 kind should you make an error on Type W-2, corresponding to together with incorrect names, Social Safety numbers, or quantities.
Employers could make Type W-2 corrections on types despatched to workers in addition to types filed with the SSA.
Potential penalties for submitting an incorrect W-2
Sadly, submitting an amended kind doesn’t assure you’ll stroll away penalty-free. You is perhaps topic to penalties should you fail to file a Type W-2 with appropriate info by January 31.
Penalty quantities rely upon whenever you file a corrected W-2 kind. The IRS might exempt you from penalties should you can present cheap trigger for the errors.
To keep away from or scale back penalties, submit a corrected kind as quickly as potential after you uncover the error on Type W-2.
So, what’s the corrected kind you want? Type W-2c.
How you can appropriate a W-2 kind: W-2c kind
To create a corrected W-2 after submitting, use Type W-2c, Corrected Wage and Tax Assertion. Employers use Type W-2c to appropriate errors on Types W-2 filed with the Social Safety Administration. Typically, you would possibly ship Type W-2c to your worker however not the SSA (defined under).
Use Type W-2c to appropriate errors you make on Type W-2, corresponding to incorrect:
- Worker names or Social Safety numbers
- Worker tackle (optionally available to make use of Type W-2c)
- Tax 12 months
- Federal Employer Identification Quantity (FEIN)
- Worker earnings or tax withholdings
You might also want to make use of Type W-2c should you filed two types for an worker underneath your EIN whenever you solely ought to have filed one. When you filed two types for an worker underneath your EIN and the wages on one had been incorrect, you’ll additionally want to make use of the W-2c kind.
How you can fill out the W-2c
On the subject of filling out Type W-2c, your first step is to buy copies of the shape. There’s a model of the shape on the IRS web site, however it’s for informational functions solely. Don’t obtain and print the shape. As an alternative, purchase the W-2 correction kind from the IRS or a certified vendor (e.g., workplace provide retailer).
Use black ink in 12-point Courier font, if potential, when filling out Type W-2c. The way in which you fill out Type W-2c is dependent upon what error it is advisable to appropriate on Type W-2.
Type W-2c contains the identical bins as Type W-2. It asks for issues like employer identify and EIN, worker identify and SSN, and federal, state, and native tax info. However not like Type W-2, there are two columns for federal, state, and native wage and tax info. One column is for “beforehand reported” info and the opposite is for “appropriate info.”
Correcting a W-2 with the unsuitable Social Safety quantity
You is perhaps questioning easy methods to appropriate W-2 with the unsuitable Social Safety quantity. To appropriate a Type W-2 with an incorrect SSN (and/or worker identify), merely full bins a – i on Type W-2c. These bins present what you beforehand reported for the worker’s identify and SSN in addition to the corrections. You do not want to the touch the federal, state, or native wage and tax bins.
To seek out particular Type W-2c directions, seek the advice of the corrected W-2 directions within the Normal Directions for Types W-2 and W-3.
Submitting Type W-2c
Once more, file Type W-2c as quickly as you notice there’s an error together with your W-2.
You may ship paper Types W-2c or e-File with the Social Safety Administration. Usually, you may select whichever methodology you like. Nevertheless, the SSA requires you to e-File types if it’s important to file 250 or extra Types W-2c.
While you file Type W-2c with the SSA, you additionally have to ship Type W-3c, Transmittal of Corrected Wage and Tax Statements.
Type W-3c is the transmittal kind for Type W-2c, identical to Type W-3 is the transmittal kind for Type W-2. You could submit a single Type W-3c for every group of Types W-2c that you just ship.
At all times file Type W-3c whenever you file a number of Types W-2c (Copy A) with the SSA.
While you don’t must ship Type W-2c to the SSA
You may not must file Type W-2c with the SSA should you make a mistake on Type W-2. Don’t ship the W-2c kind to the Social Safety Administration should you:
- Put an worker’s incorrect tackle on Type W-2
- Catch a mistake after sending Type W-2 to the worker however earlier than sending to the SSA
You could have less-common conditions that don’t require you to ship Type W-2c to the SSA, too.
Incorrect worker tackle
Did you file a Type W-2 displaying an incorrect worker tackle with the SSA? Was the entire different info appropriate? When you answered “sure” to each of those questions, don’t file Type W-2c with the SSA.
When you put the unsuitable tackle on the copies of Type W-2 you distributed to your worker, you’ll have to do one of many following (once more, don’t file Type W-2c with the SSA):
- Problem a brand new Type W-2 containing the proper tackle. Write “REISSUED STATEMENT” on the brand new worker copies
- Problem a Type W-2c to the worker displaying the proper tackle in field b
- Reissue Type W-2 with the wrong tackle to the worker in an envelope that claims the proper tackle
Catching a mistake earlier than sending Type W-2 to the SSA
When you catch the error after sending Type W-2 to the worker however earlier than sending it to the SSA, the correction course of is totally different. It doesn’t contain Type W-2c.
As an alternative, mark “void” on Copy A of the wrong Type W-2 (the copy for the SSA). Then, put together a brand new Type W-2 with the proper info. Write “CORRECTED” on the worker copies and distribute them to workers. Ship the proper model of Copy A to the SSA (however don’t write “CORRECTED” on this copy).
Much less-common conditions
Don’t use Type W-2c to report again pay corrections or to appropriate Type W-2G, Sure Playing Winnings.
How you can file a corrected W-2: Quick details
If you need fast info on easy methods to make a Type W-2 correction, check out the next issues to remember:
- Use Type W-2c to appropriate (most) errors made on Type W-2
- Don’t file Type W-2c with the SSA in case your solely mistake is an incorrect worker tackle or should you catch a mistake after sending to your worker however earlier than sending it to the SSA
- File Type W-3c whenever you ship Type W-2c to the SSA
- Submit a W-2c kind as quickly as you notice you’ve made a mistake
- You might incur penalties whenever you file an incorrect Type W-2
When you use Patriot Software program’s Full Service Payroll software program, our payroll companies will file Types W-2 for you. You simply have to print out the worker copies and provides them to your workers. Get a free trial now!
This text is up to date from its unique publication date of two/8/2011.
This isn’t meant as authorized recommendation; for extra info, please click on right here.
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