S Corp Officer's W-2 Incorrect

[David]

PEO subjected an S Corp officer's health insurance premiums paid by the corporation to FICA taxes. The salary amount and the premiums paid are included in boxes 1, 3 and 5.

I will discuss this with the client. However, I'm sure the corrected W-2 will not be issued and filed by the time I complete the client's 1120S and 1040.

How have any of you who experienced this issue handled it?

Should I enter the correct  amounts in box 3 and box 5 and report the lower FICA taxes withheld since the PEO should correct the W-2 and amend the 941 and refund the officer and the corp for the excess FICA taxes paid? 

Or is there a better way to handle this?

Thanks.

[Max W]

I've had problems with PEO's getting payroll issues wrong.

You should contact your client and let him know what the situation is. Tell your client that unless the PEO issues a W-2C, you will have to file the returns based on the incorrect W-2, then amend the return, for which you will have to charge him, when the W-2C is issued.  When the client learns that he will be overpaying tax because of the PEO's mistake, plus additional prep fees, he will swing into action and hopefully put enough pressure on them to issue the W-2C next week.

I would also prepare a pro-forma W-2C and circle the changes, so the client can send it to the PEO and the dummies on the other end will know exactly what to do.

The 941X is not so urgent, but the client should make sure that it gets filed.

 

[Medlin Software, Dennis]

Maybe the issuer has nothing showing the direct payment (assuming that is what the amount was for) is ACA compliant.