Hi, I need help with how to process corrected W-2's.
While I was working on my personal income tax return I received a message that my employer had taken out too much social security taxes and that I needed to ask them for a refund and a corrected W-2.
I went back to my records and at the beginning of 2022 I had checked the box to "round" the taxes on social security and medicare. When I processed the first quarter 941, I noticed that the tax amount was off by around $30. I thought this was too much for rounding so I went back in the middle of quarter 2 and unchecked the rounding boxes. The second quarter was off by around $8 and the remaining quarters were only off by the fractions of cents. So overall for the year my social security and medicare taxes were off by +-$40.
When I processed the 941 reports for the first and second quarters, I put the differences in the adjustment section. Since I did that, my quarterly reports do balance with my W-3. However, I think I may have done this incorrectly. I didn't realize that somehow I should have adjusted each employee's social security and medicare taxes. I still don't know how to fix this.
I'm concerned that all of my employees social security and medicare taxes paid are off. It's probably only a small amount, but they still will be overpaid or underpaid.
If anyone has any advice on the best way to fix this, I would really appreciate it. I'm trying to figure out if I need to do corrected 941's for the first and second quarter and then corrected W-2.s
How does PowerChurch issue a corrected W-2 and 941 reports?
Thanks!
Tena
How to Process Corrected W-2's
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