Form W-2C is used for changes to previously filed Form W-2s, which include changes to the taxpayer’s name, address, social security number, filing status, wages, and/or income, or to correct previously filed tax forms, to correct errors or omissions, to provide additional information.
Many taxpayers know they need to file a W-2 at the end of the year for their employees. But many don’t realize that they also need to file a W-2C to correct any errors on the previous year’s forms. The W-2C is used to notify the IRS of any changes to the previous year’s W-2s. Since it is used to correct mistakes, the W-2C is treated as a correction rather than an original, which means that the IRS may not accept it as proof that the previous year’s W-2s were filed correctly. The W-2C must always be filed electronically.
How to request Form W-2C?
The W-2C form is used to request a corrected W-2 for an employee who believes that the information on their W-2 form does not match reality. The W-2C form is filed directly to the employer’s personnel/payroll office.
How often are W-2C forms produced?
Generally, the IRS Form W-2C is generated monthly, and the form is forwarded to campus/agency personnel offices around the 12th of the month.
What are the Components of a Form W2C
A Form W-2C includes the following sections:
- Personal Information
- Previously Reported Information
- Correct Information
- State Correction Information
- Locality Correction Information
Why is Form W2C Received
A person receives a Form W-2C to make changes in the original W-2 data or previously issued W-2C form. These required changes result from the processing of NON-USPS/payroll documentation received from the personnel/payroll or accounting office.
Here are a few reasons why the Form W-2C is issued:
- Employee name correction
- Social Security Number correction
- Incorrect tax year
- Employee wages or tax withholdings correction
- Late reporting of NON-USPS
- Lump-Sum Deferral
- Fringe Benefits/Employee Business Expenses corrected/reported after the close of the tax year
- Social security number change processed after the close of the tax year
- Adjustment to the SDI (State Disability Insurance) gross wage base
- Refund of FICA taxes
- Redeposit of payment issued in a previous tax year made after the close of the tax year
- Disability transactions affecting the previous year’s taxes and taxable gross reported/processed after the close of the tax year
- Adjustments to previous year Medicare/social security or state disability insurance reductions processed after the close of the tax year
- Payments made for previous year salary advances, moving relocation/expenses
Final Words
In conclusion, the IRS Form W-2C is used to correct errors made when filing a tax return. It is important to understand that a W-2c form can only be used to correct a problem that occurred when a W-2 form was originally filed. It cannot be used to report a new error after a tax return was filed, and it cannot be used to correct a problem with a tax return that was not filed. Attend the Compliance Prime webinar to know more about IRS Form W-2C.
