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Requesting a Corrected W-2 for a State Employee. Oregon Statewide Payroll Services. Topics. Why request a corrected W-2 (W-2c) When to request a corrected W-2 (W-2c) How to request a corrected W-2 (W-2c). Overview.
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Requesting a CorrectedW-2 for a State Employee Oregon Statewide Payroll Services
Topics • Why request a corrected W-2 (W-2c) • When to request a corrected W-2 (W-2c) • How to request a corrected W-2 (W-2c) CorrectedW-2_20101206.ppt
Overview • Payroll has a fiduciary responsibility to process and report correct wage and tax information for employees • OSPS: • Submits the tax payments • Reconciles and reports quarterly and annual payroll taxes to DOR, IRS & SSA • Form W-2c is a tool to assist in maintaining correct payroll data for employees CorrectedW-2_20101206.ppt
Why request W-2c • Employee’s wage and tax information for a prior tax year is incorrect • Incorrect SSN used on W-2 • Incorrect name or spelling of name • Overpayment of wages in prior year repaid CorrectedW-2_20101206.ppt
Why request W-2c Cont’d • Taxable income reported as non-taxable or non-taxable report as taxable • Employee redeems year end paycheck early – i.e. check dated for 2011 redeemed in 2010 • System error in reporting wages and tax on W-2 CorrectedW-2_20101206.ppt
When to request a W-2c • As soon as you know the W-2 is incorrect and you have verified the correct amounts • Example: request a corrected W-2 when: • An employee was overpaid for a prior tax year • The employee has repaid the agency CorrectedW-2_20101206.ppt
How to request a W-2c • Request for Corrected W-2 (W-2c) Form • OSPS web site: Services, Corrected W-2’s • Tools: • Employee’s original W-2 • Copies of method of payment for return of overpayment • Pay register showing incorrect wage CorrectedW-2_20101206.ppt
Get More Information • IRS Web Site (www.irs.gov) • IRS Publication 15, Circular E, Employer’s Tax Guide • OSPS web site: • Services, Corrected W-2’s • Reference Manual, Recommended Practices, Taxes, Corrected W-2 • OSPS Staff CorrectedW-2_20101206.ppt
Summary • Request W2c when you discover incorrect wage and tax information • Verify and document correct data • Submit request for corrected W-2 to OSPS Accountant for processing and filing to all necessary tax entities • Questions CorrectedW-2_20101206.ppt
Example One Incorrect Social Security Number CorrectedW-2_20101206.ppt
Example Two Dependent Care Flexible Spending Account Refund CorrectedW-2_20101206.ppt
Example Three Late Entry of DPT P050 Adjustment CorrectedW-2_20101206.ppt
Example Four Housing Allowance Taxed Incorrectly CorrectedW-2_20101206.ppt
Example Five System Entries Incorrect CorrectedW-2_20101206.ppt
Example Six Employee Cashed December Check Early (Two Corrected W-2’s) CorrectedW-2_20101206.ppt
Increase Taxable Income Year Cashed CorrectedW-2_20101206.ppt
Decrease Taxable Income Following Year CorrectedW-2_20101206.ppt
Example 8.a Overpayment Repaid Over Three Years – W-2c after Each Year CorrectedW-2_20101206.ppt
Circumstances • Employee worked for two agencies • Year of overpayment (2005) - Repaid $300 • Year 2 (2006) - Repaid $1,800 • Year 3 (2007) - Repaid $758.81 (not shown) CorrectedW-2_20101206.ppt
W-2c Each Year • Year 1 – Reduce taxable income, social security, and Medicare subject for 2005 • Year 2 – Reduce social security and Medicare subject for 2005 for amount repaid • Year 3 – Reduce social security and Medicare subject for 2005 for amount repaid CorrectedW-2_20101206.ppt
