Payroll withholding error

Bill Miller · Post by **Bill Miller** » Wed Jan 11, 2006 9:32 am

Last year I inadvertently checked the "round off to nearest dollar" on the social security withholding screen. That resulted in withholding 30 cents too much in each of 24 pays for one individual. The IRS returned the difference after our quarterly 941 forms reported the amount owed (calculated to the cent) was different from the amount we sent in each month. How can we give back the excess we withheld from this employee's pay? Can we do it in a way that will change the SS w/h liability so that his W-2 form will show what was originally withheld minus what we returned to him?

Bill Miller · Post by **Bill Miller** » Fri Jan 13, 2006 3:15 pm

No reply needed. IRS form 941 explains how to correct errors in withholding. I think the "Round off to the nearest dollar" check box needs to have a warning: Do not do this unless you completely understand the consquences of this choice!