User Support Forum

Hello
I have to correct a W2 for 2012 for an employee. I need to reduce the employee SS tax from 158.46 to 144.69. The difference is a refund to the employee. I have close all of 2012 months except December. How do I correct the W2 for 2012 and refund employee.

FirstMOBC wrote:Hello
I have to correct a W2 for 2012 for an employee. I need to reduce the employee SS tax from 158.46 to 144.69. The difference is a refund to the employee. I have close all of 2012 months except December. How do I correct the W2 for 2012 and refund employee.

Are you saying too much was withheld?? I would just say, when the employee files their 1040 the overpayment will be part of their refund. Just make sure that the 2013 withholding is setup correctly.

Again, this is my opinion, but its much easier than you trying to correct the 2012 payroll and issuing an updated W2.

Are saying The Social Security Taxes will be refunded?

Yes I have problems with the SS taxes. Right now for the first QTR I am looking for 10.78. Look as if everything is set-up correctly. I will owe the employee SS taxes from 2012. For some reason they were reported on the W2 as 158.46 and should have been $144.69.

FirstMOBC wrote:Are saying The Social Security Taxes will be refunded?

Sorry, I've been doing Self-Employment tax for Social Security for so long, I forgot that you can't get a refund on normal SS withholding in that way. I do beg your pardon.

Go into Payroll and process payroll for just the overwithheld SS taxes. Do this by unselecting all of the pay items to process except for the SS tax withheld one. Then, edit the pay item, change the tax table to Manual amount, and then input the overwithheld amount as negative. Then process the payroll, using a posting date on or before December 31, 2012.

Then I will need to issue a corrected w2 also right?

FirstMOBC wrote:Then I will need to issue a corrected w2 also right?

Most definitely ...