revise 2020 w-2

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

Moderators: Moderators, Tech Support

Post Reply
whfpc
Posts: 135
Joined: Tue Aug 15, 2017 11:32 am

revise 2020 w-2

Post by whfpc »

An employee was processing their tax return and received a message that their employer withheld too much. I only take what the system calculates, anyway they need a new w-2 from me. How do I do that? PC 12.2

Also I the amount it shows as "underpaid" this year (that I had written a check to the IRS for) was the same amount 5.98....

Robin

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: revise 2020 w-2

Post by NeilZ »

whfpc wrote:
Mon Mar 01, 2021 10:28 am
An employee was processing their tax return and received a message that their employer withheld too much. I only take what the system calculates, anyway they need a new w-2 from me. How do I do that? PC 12.2
Why would they require a new W-2, since that shows what was taken out of their pay? When they file, any withholding over and above their tax bill becomes part of their refund. All that message means is that they need to create a new W-4 form to submit to you, on which they decide what they should have taken out, you then adjust their exemptions, etc on their Fed Tax pay item.
Also I the amount it shows as "underpaid" this year (that I had written a check to the IRS for) was the same amount 5.98....

Robin
Where are you seeing this 'underpaid' information? You need to give more details.
Neil Zampella

Using PC+ since 1999.

whfpc
Posts: 135
Joined: Tue Aug 15, 2017 11:32 am

Re: revise 2020 w-2

Post by whfpc »

It was information from their online tax service, is reads:

Your employer withheld too much social security tax from your wages in 2020.
Contact your employer to get a refund for the amount overpaid for your Social Security tax
Let your employer know you need a corrected W-2
Once you get your corrected W-2, update your income in TurboTax.


SS tax withheld $2,208.00
Amount turbo calculated $2,201.14
Excess amount withheld by your employer $5.86

whfpc
Posts: 135
Joined: Tue Aug 15, 2017 11:32 am

Re: revise 2020 w-2

Post by whfpc »

I also just noticed in the set up of the ss with-holdings that the employee part is checked to round up and the employer portion is not on the ss withheld. Should they both be one or the other? And if so, which is correct??? I am certain other folks have filed taxes but I am concerned that this may have caused problems with all of the employees. In that case, I may need to take a long walk off of a short bridge.....

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: revise 2020 w-2

Post by NeilZ »

whfpc wrote:
Mon Mar 01, 2021 2:20 pm
I also just noticed in the set up of the ss with-holdings that the employee part is checked to round up and the employer portion is not on the ss withheld. Should they both be one or the other? And if so, which is correct??? I am certain other folks have filed taxes but I am concerned that this may have caused problems with all of the employees. In that case, I may need to take a long walk off of a short bridge.....
They should both be the same, I would not 'round up' as that could take out more taxes. The tax percentage is exactly the same, so the employer and employee taxes should be the same amount on both the Medicare & SS taxes.
Neil Zampella

Using PC+ since 1999.

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: revise 2020 w-2

Post by NeilZ »

whfpc wrote:
Mon Mar 01, 2021 1:44 pm
It was information from their online tax service, is reads:

Your employer withheld too much social security tax from your wages in 2020.
Contact your employer to get a refund for the amount overpaid for your Social Security tax
Let your employer know you need a corrected W-2
Once you get your corrected W-2, update your income in TurboTax.


SS tax withheld $2,208.00
Amount turbo calculated $2,201.14
Excess amount withheld by your employer $5.86
So you had to pay a check for an underpayment to the IRS, probably because you withheld more on this employee than you contributed as an employer?

Well, creating a W-2C is not that hard, but it is a pain to do. The good news is that if you went to the SSA website to input your W-2s, you can easily create a corrected W-2C there, and print it off for your employee. If not, I would get the W-2C form, and type in all the data, then submit the "red' copy to the SSA along with the summary form as needed.
Neil Zampella

Using PC+ since 1999.

whfpc
Posts: 135
Joined: Tue Aug 15, 2017 11:32 am

Re: revise 2020 w-2

Post by whfpc »

I haven't written the employee a check yet, that's the first thing I should do and mark it for 2020 payroll?

Not sure what the SSA website is to input the W-2 info so obviously I will be doing it the hardest way. I have just done what they have done in the past here, and that's mailing..... Is the SSA the electronic filing? I will be doing that for future if I can figure it out.

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: revise 2020 w-2

Post by NeilZ »

whfpc wrote:
Mon Mar 01, 2021 3:02 pm
I haven't written the employee a check yet, that's the first thing I should do and mark it for 2020 payroll?
You're going to have to refund any extra amounts taken out for Jan & Feb too, that's fairly easy just manually adjust the employee's SS withholding in March to even it out. However, for 2020, this is one of those scenarios where I'd ask the church board for some grace, and just to cut the check and write it off. Then cut the W2C
Not sure what the SSA website is to input the W-2 info so obviously I will be doing it the hardest way. I have just done what they have done in the past here, and that's mailing..... Is the SSA the electronic filing? I will be doing that for future if I can figure it out.
The SSA website allows small businesses with just a few employees to manually enter the W2s and the W3 online. Takes a bit of time, but you know its done. I don't know how many employees you have, but if you have under 10, I would think about it.

You have to register for the site, but you should take a look: https://www.ssa.gov/employer/
Neil Zampella

Using PC+ since 1999.

whfpc
Posts: 135
Joined: Tue Aug 15, 2017 11:32 am

Re: revise 2020 w-2

Post by whfpc »

As always, thank you!!!!

whfpc
Posts: 135
Joined: Tue Aug 15, 2017 11:32 am

Re: revise 2020 w-2

Post by whfpc »

So yeah, not just ONE person, the boxed was checked all year and I have checked a couple and now am quite sure they are ALL like that. I did order some w2c's from the IRS website yesterday. Shouldn't they be able to file without a corrected w-2? and then file a correction for last year? I. AM. DEFEATED!!

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: revise 2020 w-2

Post by NeilZ »

whfpc wrote:
Tue Mar 02, 2021 8:05 am
So yeah, not just ONE person, the boxed was checked all year and I have checked a couple and now am quite sure they are ALL like that. I did order some w2c's from the IRS website yesterday. Shouldn't they be able to file without a corrected w-2? and then file a correction for last year? I. AM. DEFEATED!!
Yes, they can file using the W-2, then file a 1040 correction later, but why put them through that hassle, when the issue happened at the employer. I'm sorry to say that, but its true. How many are we talking here?
Neil Zampella

Using PC+ since 1999.

whfpc
Posts: 135
Joined: Tue Aug 15, 2017 11:32 am

Re: revise 2020 w-2

Post by whfpc »

No! I get it! I just didn't want to hold them up while I am waiting on the w2c's :(. 9 employee's overpaid and 12 we overpaid. Not sure what to do there. I'm guessing those that we overpaid won't have a problem?

Robin

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: revise 2020 w-2

Post by NeilZ »

whfpc wrote:
Tue Mar 02, 2021 11:02 am
No! I get it! I just didn't want to hold them up while I am waiting on the w2c's :(. 9 employee's overpaid and 12 we overpaid. Not sure what to do there. I'm guessing those that we overpaid won't have a problem?

Robin
Yeah ... basically ... your overpayment don't matter, you can request a refund, but ...
Neil Zampella

Using PC+ since 1999.

Post Reply