Let’s face it: everyone makes errors. So, in the event you make a mistake on an worker’s Type W-2, don’t panic. As an alternative, learn to appropriate a W-2 type and take motion.

You’ll be able to appropriate Type W-2 even after submitting it with the Social Safety Administration (SSA). Learn on to study forms of frequent W-2 errors and learn 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 the event you make an error on Type W-2, comparable 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. 

Doable 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 the event you fail to file a Type W-2 with appropriate data by January 31. 

Penalty quantities depend upon whenever you file a corrected W-2 type. The IRS could exempt you from penalties in the event you can present affordable 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 Type W-2. 

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

Easy methods to appropriate a W-2 type: W-2c type

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 Kinds 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, comparable to incorrect:

• Worker names or Social Safety numbers
• Worker tackle (optionally available to make use of Type W-2c) 
• Tax yr
• Federal Employer Identification Quantity (FEIN)
• Worker earnings or tax withholdings

You might also want to make use of Type W-2c in the event you filed two types for an worker below your EIN whenever you solely ought to have filed one. If you happen to filed two types for an worker below your EIN and the wages on one had been incorrect, you’ll additionally want to make use of the W-2c type. 

Easy methods to fill out the W-2c 

In the case 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 type from the IRS or a licensed vendor (e.g., workplace provide retailer). 

Use black ink in 12-point Courier font, if potential, when filling out Type W-2c. The best way you fill out Type W-2c is dependent upon what error it’s worthwhile to appropriate on Type W-2. 

Type W-2c contains the identical packing containers as Type W-2. It asks for issues like employer identify and EIN, worker identify and SSN, and federal, state, and native tax data. However in contrast to Type 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 “appropriate data.”

Correcting a W-2 with the improper Social Safety quantity

You may be questioning learn how to appropriate W-2 with the improper Social Safety quantity. To appropriate a Type W-2 with an incorrect SSN (and/or worker identify), merely full packing containers a – i on Type W-2c. These packing containers 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 packing containers. 

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

Submitting Type W-2c

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

You’ll be able to ship paper Kinds W-2c or e-File with the Social Safety Administration. Typically, you may select whichever methodology you favor. Nevertheless, the SSA requires you to e-File types if it’s important to file 250 or extra Kinds W-2c. 

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

Type W-3c is the transmittal type for Type W-2c, similar to Type W-3 is the transmittal type for Type W-2. It’s essential to submit a single Type W-3c for every group of Kinds W-2c that you simply ship. 

All the time file Type W-3c whenever you file a number of Kinds W-2c (Copy A) with the SSA. 

Once you don’t must ship Type W-2c to the SSA

You won’t must file Type W-2c with the SSA in the event you make a mistake on Type W-2. Don’t ship the W-2c type to the Social Safety Administration in the event 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 might 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 exhibiting an incorrect worker tackle with the SSA? Was the entire different data appropriate? If you happen to answered “sure” to each of those questions, don’t file Type W-2c with the SSA.

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

1. Situation a brand new Type W-2 containing the right tackle. Write “REISSUED STATEMENT” on the brand new worker copies
2. Situation a Type W-2c to the worker exhibiting the right tackle in field b
3. Reissue Type W-2 with the wrong tackle to the worker in an envelope that claims the right tackle 

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

If you happen to 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 right data. Write “CORRECTED” on the worker copies and distribute them to workers. Ship the right 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. 

Easy methods to file a corrected W-2: Quick info

In order for you fast data on learn how to make a Type W-2 correction, check out the next issues to bear in mind: 

• 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 in the event 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 type as quickly as you understand you’ve made a mistake
• Chances are you’ll incur penalties whenever you file an incorrect Type W-2 

If you happen to use Patriot Software program’s Full Service Payroll software program, our payroll companies 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 authentic publication date of two/8/2011.

This isn’t supposed as authorized recommendation; for extra data, please click on right here.