Mistakes are inevitable, and everyone is bound to make them. What’s important is not to panic and face your mistakes head-on to correct them. The sooner, the better!
Employers frequently make mistakes on employees’ W-2 forms and it’s common to see employers worry about W-2 form corrections. But is it possible to correct a W-2 form if you make any mistakes?
Yes, it is indeed possible. It is even possible to correct a W-2 form after submitting it to the SSA (Social Security Administration).
How to Correct a W-2 Form
To correct your mistakes on the W-2 form, you need to file a W-2c form. A W-2c form is a correction form solely used by employers to file a corrected wage and tax statement. Employers need to submit the form to the Social Security Administration and in some cases, to the employees as well.
Some of the common mistakes corrected on the W-2c form are employee name or SSN (Social Security Number), employee address, dates, wage and tax amounts, federal employer identification number, etc.
Unfortunately, filing a W-2c form might not save you from IRS penalties. You will be fined if you fail to submit a corrected W-2c form before the IRS deadline, which is January 31st.
If there is a reasonable cause for your mistakes, IRS might exempt you from penalties. But if not, the amount you will be fined depends on your corrected form. To avoid penalties, you need to file a correct W-2c form as soon as you spot an error on your W-2 form.
Filing a W-2c Form
When you are supposed to file a W-2c form, the first thing you will need to do is purchase a copy of the form. Although there is a version of it available on the IRS website, it’s only for guidance and information related to filing a W-2C form. You can buy copies of this form from the IRS office or other sellers who are authorized.
Filing the W-2c form includes the same information required to fill out the W-2 form. You need to provide the employer’s name, FEIN, employee’s name and social security number, and other tax information. The only difference in the W-2c form would be the extra column for correction of federal, state, and local wage and tax information. So, in the first column you fill-up the information provided in your previous report and the other is for “correct information”.
To correct the W-2 form with the wrong SSN or employee name, you simply need to fill out boxes on a – i on form W-2c.
Final words
Filing payrolls, accounts, and IRS forms can be a challenging and time-consuming task. It’s rare not to make mistakes with the numbers. Hence, it is essential to always cross-check with a fresh pair of eyes before submitting your reports.
