How you can Right a W-2 Kind


Let’s face it: all people makes errors. So, in case you make a mistake on an worker’s Kind W-2, don’t panic. As an alternative, discover ways to right a W-2 type and take motion.

You may right Kind W-2 even after submitting it with the Social Safety Administration (SSA). Learn on to study varieties of frequent W-2 errors and find out how to amend a W-2 based mostly on the kind of mistake. 

When do you want a corrected W-2 type? 

You could create an amended W-2 type in case you make an error on Kind W-2, equivalent to together with incorrect names, Social Safety numbers, or quantities. 

Employers could make Kind W-2 corrections on varieties despatched to workers in addition to varieties filed with the SSA. 

Attainable penalties for submitting an incorrect W-2 

Sadly, submitting an amended type doesn’t assure you’ll stroll away penalty-free. You may be topic to penalties in case you fail to file a Kind W-2 with right data by January 31. 

Penalty quantities rely on if you file a corrected W-2 type. The IRS could exempt you from penalties in case you can present cheap trigger for the errors. 

To keep away from or scale back penalties, submit a corrected type as quickly as potential after you uncover the error on Kind W-2. 

So, what’s the corrected type you want? Kind W-2c. 

How you can right a W-2 type: W-2c type

To create a corrected W-2 after submitting, use Kind W-2c, Corrected Wage and Tax Assertion. Employers use Kind W-2c to right errors on Kinds W-2 filed with the Social Safety Administration. Generally, you may ship Kind W-2c to your worker however not the SSA (defined under). 

Use Kind W-2c to right errors you make on Kind W-2, equivalent to incorrect:

  • Worker names or Social Safety numbers
  • Worker handle (non-compulsory to make use of Kind W-2c) 
  • Tax yr
  • Federal Employer Identification Quantity (FEIN)
  • Worker earnings or tax withholdings

You may additionally want to make use of Kind W-2c in case you filed two varieties for an worker below your EIN if you solely ought to have filed one. When you filed two varieties for an worker below your EIN and the wages on one have been incorrect, you’ll additionally want to make use of the W-2c type. 

situations where employers may need a corrected w-2 form

How you can fill out the W-2c 

In the case of filling out Kind 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 type 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 Kind W-2c. The way in which you fill out Kind W-2c is dependent upon what error you should right on Kind W-2. 

Kind W-2c consists of the identical packing containers as Kind W-2. It asks for issues like employer title and EIN, worker title and SSN, and federal, state, and native tax data. However not like Kind W-2, there are two columns for federal, state, and native wage and tax data. One column is for “beforehand reported” data and the opposite is for “right data.”

Correcting a W-2 with the improper Social Safety quantity

You may be questioning find out how to right W-2 with the improper Social Safety quantity. To right a Kind W-2 with an incorrect SSN (and/or worker title), merely full packing containers a – i on Kind W-2c. These packing containers present what you beforehand reported for the worker’s title and SSN in addition to the corrections. You do not want to the touch the federal, state, or native wage and tax packing containers. 

To search out particular Kind W-2c directions, seek the advice of the corrected W-2 directions within the Basic Directions for Kinds W-2 and W-3.

Submitting Kind W-2c

Once more, file Kind W-2c as quickly as you understand there’s an error together with your W-2. 

You may ship paper Kinds 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 varieties if you must file 250 or extra Kinds W-2c. 

While you file Kind W-2c with the SSA, you additionally must ship Kind W-3c, Transmittal of Corrected Wage and Tax Statements. 

Kind W-3c is the transmittal type for Kind W-2c, similar to Kind W-3 is the transmittal type for Kind W-2. You have to submit a single Kind W-3c for every group of Kinds W-2c that you simply ship. 

At all times file Kind W-3c if you file a number of Kinds W-2c (Copy A) with the SSA. 

While you don’t need to ship Kind W-2c to the SSA

You won’t need to file Kind W-2c with the SSA in case you make a mistake on Kind W-2. Don’t ship the W-2c type to the Social Safety Administration in case you:

  • Put an worker’s incorrect handle on Kind W-2 
  • Catch a mistake after sending Kind W-2 to the worker however earlier than sending to the SSA

You’ll have less-common conditions that don’t require you to ship Kind W-2c to the SSA, too. 

Incorrect worker handle

Did you file a Kind W-2 displaying an incorrect worker handle with the SSA? Was the entire different data right? When you answered “sure” to each of those questions, don’t file Kind W-2c with the SSA.

When you put the improper handle on the copies of Kind W-2 you distributed to your worker, you’ll must do one of many following (once more, don’t file Kind W-2c with the SSA):

  1. Difficulty a brand new Kind W-2 containing the proper handle. Write “REISSUED STATEMENT” on the brand new worker copies
  2. Difficulty a Kind W-2c to the worker displaying the proper handle in field b
  3. Reissue Kind W-2 with the inaccurate handle to the worker in an envelope that claims the proper handle 

Catching a mistake earlier than sending Kind W-2 to the SSA

When you catch the error after sending Kind W-2 to the worker however earlier than sending it to the SSA, the correction course of is totally different. It doesn’t contain Kind W-2c. 

As an alternative, mark “void” on Copy A of the inaccurate Kind W-2 (the copy for the SSA). Then, put together a brand new Kind W-2 with the proper data. 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 Kind W-2c to report again pay corrections or to right Kind W-2G, Sure Playing Winnings. 

How you can file a corrected W-2: Quick info

If you’d like fast data on find out how to make a Kind W-2 correction, check out the next issues to remember: 

  • Use Kind W-2c to right (most) errors made on Kind W-2
  • Don’t file Kind W-2c with the SSA in case your solely mistake is an incorrect worker handle or in case you catch a mistake after sending to your worker however earlier than sending it to the SSA
  • File Kind W-3c if you ship Kind W-2c to the SSA 
  • Submit a W-2c type as quickly as you understand you’ve made a mistake
  • You might incur penalties if you file an incorrect Kind W-2 

When you use Patriot Software program’s Full Service Payroll software program, our payroll providers will file Kinds W-2 for you. You simply must 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 data, please click on right here.

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