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Correcting W-2 error


TaxmannEA

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One of our people who insists on filing W-2s on paper just found that she had sent in a group of W-2s with a duplicate page listing the same 2 employees twice. If she sends in a W-2C blanking out the wages on one page, will it cause all wages for those employees to be zeroed out or just one set ( the duplicates)? I've never run into this before.

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1 hour ago, DANRVAN said:

Not sure how that works, but by my thinking the system will only accept one W-2 per employee per employer.  Did W-3 include duplicates?   

Check with SSA for details

Yes check with SSA, but the system will indeed accept multiple W-2s per employee per employer.  We had a situation last year with double-reporting of income for some employees.  One was our client; employer learned of issue when several ee's got CP2000 letters for un-reported income.

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9 hours ago, TaxmannEA said:

One of our people who insists on filing W-2s on paper just found that she had sent in a group of W-2s with a duplicate page listing the same 2 employees twice. If she sends in a W-2C blanking out the wages on one page, will it cause all wages for those employees to be zeroed out or just one set ( the duplicates)? I've never run into this before.

Oh well, I'll take a shot at it (fools rush in where...).

First, I assume when you're saying the paper person sent in a "duplicate page" you mean TWO of the copy A's of form W-2 (NOT the employee copies B-C-2); is that right?

I'm not sure what you mean about "blanking out" the wages on one page.  You're going to have to send two forms W-2C here; one for each employee.  Let's say employee #1 made $20,000 and employee #2 made $10,000.  Since SSA has two forms on each, right now they're assuming that #1 made $40,000 and #2 made $20,000.  Each form W2C has a "Previously reported" line and those ($40K/$20K) are the figures you will put there.  Then you'll fill in the "Correct Information" for wages, SS, & withholding for the right amount on each.  There's another way to do it but it just muddies up the water.  See page 26 of this link which lays out how-to-do the above stuff (and the muddy version) and walks you through it.

https://www.irs.gov/pub/irs-pdf/iw2w3.pdf

It's been several years since I was last tortured (ah'druther be drawn & quartered) with one of these and at that time SSA was not accepting laser-printed W-2 forms.  They do now but I'm not sure about the W2C & W3C forms.  If they require the red copies like IRS does on 1099s then you may have a problem finding the forms.  It takes a good while to get an offbeat form by mail from any government agency and most local stores don't carry those forms.  According to the link (see page 3) SSA will take W3C forms electronically at their so-called BSO (Business Services Online), so maybe you could do it there if you prefer (have no idea how long it would take to get client a password, log-in code, etc.).   As you may have guessed, I'm also an insist-on-paper person. :rolleyes:

Good luck!

 

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There was one W-3 that included the duplicate page of W-2 for 2 employees. The duplicates were included on the W-3 totals. (I'm still trying to figure how the payroll software did that.) What I'm concerned with is that the W-2c will delete all wages for these employees, not just the duplicates. I tried calling SSA but I keep getting " your estimated wait time is 1 hour 45 minutes". 

By the way, I'm a paper person too, but I've had problems in the past with SSA losing the forms.

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I agree with Catherine,  W-2'C showing total as reported and what should be reported.  If you are paper filing you can attach an explanation.

On 6/25/2019 at 6:57 AM, TaxmannEA said:

There was one W-3 that included the duplicate page of W-2 for 2 employees. The duplicates were included on the W-3 totals. 

If you don't mind a suggestion, a payroll reconciliation should have caught the error: W-3 = totals from 941's = total from year end payroll summary.

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