Fundamentals of Form W2-C and Reporting Corrections

• Overview

Take away valuable information to ensure you are handling this complex subject correctly in your own payroll shops.This topic is designed for persons who are responsible for withholding, submitting, reporting and processing employee tax and informational returns and find themselves unable to handle the issues that arise when adjustments or corrections are necessary. This information will answer those tough questions of how-to, when-to and why.

Authors

Veronica B. King, CPP, PB, Pay-Pro Business and Consumer Resources

Agenda

Purpose of Form W2-C

• Recap of When It Is Appropriate to Issue a Form W2-C

- Reasons to Issue a Form W2-C and When We Would Not Issue a Form W2-C

• Recap of Time Limits of Issuing a Form W2-C

- Three Year Limit of Issuing a W2-C and the Significance of This Time Frame

Crosswalk of Corrections

• Relationship of Forms W2-C, 941-X and Form 940

- How the Three Forms Relate to One Another and Why All Three Forms Needs to Be Adjusted If an Adjustment Is Made to One

• Brief Overview of How to Complete a Form W2-C, 941-X and Amended Form 940

- How to Complete the Correction Forms and the Common Mistakes Made as Well as Do's and Don'ts

Impact of Related Forms (Form 941. Form 940 and Other Reporting)

• Liability Adjustments

• Penalties and Interest of Understated Deposits

• Refunds of Overstated Deposits

- The Impact of the Types of Corrections Made and How the Overstated/Understated Deposits May Result in a Penalty or Refund

- How to Handle the Penalties and Requests for Refunds/Abatements