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Two W2's, same employer


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Client has two w2's from the same employer, no break in employment during the year. Can I just combine the amounts under one w2 in the system or must I separate them? Of course if i combine, the tax should be less than if separate right?



I am in the same situation and just wondering if you entered as 2 separate W2s and if everything turned out ok.

 

Moderator note - this post revived a topic from 2009 and so was split out from that. The quote box contains the fact pattern this new OP's question is based on.

Edited by jklcpa
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Federal reporting has wide leeway.  They will happily take multiple 941 forms per EIN, as well as multiple sets of W2 forms per EIN.  (They prefer one set per EIN, but there is no such requirement.)

Other common reasons for multiple reporting:  Internal accounting (one set of reports per location for instance).  Multiple state reporting (one set of reports per state, which will become much more common in the new remote work scenario we live in).  Multiple "other" jurisdiction reporting (such as having multiple local taxes, in an area without common reporting).

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Check the client's pay stubs and ask about his company's history, too.

We had one a couple years ago where the company changed payroll services mid-year. They were *supposed* to get one W2 for the full year from the new provider (and they did get that W2), but they *also* got a W2 from the old provider for half the year.  We had to wait for the IRS letter but had the explanation and all supporting documentation ready to go.  

Prior to that, we had one client whose company did some restructuring, and issued two W2s for the year, under the old and the new structures, with different EINs.

Plenty come in with multiples who work in, and have tax withheld for, multiple states.  Those we treat as continuation pages (because essentially that's what they are).

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Several years ago I had a business client with 2 'divisions'.  The employees who worked in both divisions received 2 W2's (none of which ever came close to the FICA limit when combined).  Employees received 2 W2's but when I filed them with SSA and the state I had to combine them into one W2 for filing purposes.

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Credit for excess FICA withheld on the employee's tax return will be launched regardless of how many W-2s or how many employers.  As long as the payee on the W-2 is correct.  The same employer is entitled to a break on the employers' share once the limit is reached, however they can botch this up by changing payroll in the middle of the year, multiple payroll services, etc.

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Check the EINs.  Sometimes one division of the same company has a different EIN from another.  I had a client who switched divisions and got two W2s, same EIN, with excess SS withholding.  The IRS said my client could only get the excess back from the employer, but the employer refused to change anything.  We eventually resolved it by providing the refusal letter to IRS, but it took a long time.

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