W-2 and Form 941 Corrections

Penalties for late filing or filing incorrect W-2 Forms are on the rise. In addition, penalties for incorrect information of Form 941 can also be costly. 

The penalties are also indexed for inflation and will continue to increase each year. Penalties are reduced when errors are corrected quickly. It is important for payroll professionals to understand the rules that reduce or mitigate penalties and to act within the time limitations for maximum benefit. Understanding how to compute and process corrections by correctly completing Form W-2c is an essential skill.

This webinar will discuss methods for avoiding or correcting errors on Forms 941 and W-2 with a focus on how to make corrections where required so that penalties are eliminated, or minimized. The webinar will also discuss how to properly prepare and file Forms 941-X and W-2c correctly and how and when to file the corrections.

A major task of the payroll department is providing W-2 Forms to employees and to the Social Security Administration. The Forms must be correct, complete, and filed on time or the employer may face stiff penalties. 

Corrections to W-2 Forms frequently require that Forms 941 also be corrected. Similarly, a correction to a prior year Form 941 may require that Prior year W-2 Forms also be corrected. It is important for payroll professionals to understand the relationship between Form 941 and the W-2 Forms and to know to correct errors on Form 941 and how to correctly prepare Form 941-X.

This webinar will discuss the common and not so common errors and adjustments that affect Forms W-2 and actions you can take now to reduce or prevent filing problems and errors, special reporting situations, and what to do when errors are discovered. It will also cover the changes under the new filing deadlines.
Correcting or amending returns for the 2020 and 2021 COVID-19 tax credits and tax deferrals will be covered.

After completing the webinar:

• You will be able to describe the appropriate circumstances requiring that you issue a Form W-2C or Form 941-X
• You will be able to discuss the corrected W-2 with your employee
• You will be able to explain the necessary changes required to your supervisor
• You will be able to identify which tax forms need to be amended
• You will know the deadlines for minimizing penalties on late or incorrect W-2 Forms
• You will know when to file Form 941-X to make interest free adjustments
• You will understand how the statute of limitations applies to Form 941 Amendments
• You will understand the difference between a Form 941 adjustment and a Form 941 claim for refund
• You will know which certifications must be obtained from an employee in order to file an adjustment or claim for refund for overpaid tax

W-2/W-3 Correction Basics

• Statute of Limitations to Correct Forms
• Timing to Provide Forms to Individuals and Submit to SSA
• Which Forms to Use

Correcting Errors on Current Forms

• Issue a W-2C or a Corrected W-2
• Updates to 2020 through 2022 Forms 941 and 941-X
• Adjusting Payroll Tax Filings for 941

Correcting Common Errors for Prior Year Forms

• Correcting Employee's Name
• Correcting Employee's Address
• Correcting Multiple W-2 Forms for an Employee
• Correcting Entries in Box 12

Correcting Federal Payroll Tax Forms

• Form 941 - Underpayment of Taxes
• Form 941 - Overpayment of Taxes

Other Considerations

• Refunding of Overpaid FICA Taxes
• Correcting sick and family leave payments
• Corrections for COVID Tax Credits

• Payroll Supervisors and Personnel
• Payroll Consultants
• Payroll Service Providers
• Public Accountants
• Internal Auditors
• Tax Compliance Officers
• Enrolled Agents
• Employee Benefits Administrators
• Officers and Managers with Payroll or Tax Compliance Oversight
• Company / Business Owners
• Managers/ Supervisors
• Public Agency Managers
• Audit and Compliance Personnel / Risk Managers