W-2 Errors: How to Avoid Them, How to Correct Them

Overview:

A major task of Payroll departments 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. For 2016 W-2 Forms the due date for filing the forms with the Social Security Administration was moved up to January 31, 2017. This also means that the dates for making corrections with reduced penalties have also been accelerated.  In addition the IRS expects to see more errors on W-2 Forms and has changed the rules regarding de minimus corrections for returns filed after December 31, 2016. 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.

Why Should You Attend:

Payroll taxes are a serious issue for the IRS. Two thirds of federal taxes are collected through the payroll tax system. By law, employers must withhold federal income, Social Security and Medicare taxes from employees’ wages. In response to instances of identity theft and tax fraud involving W-2 Forms, the IRS and Social Security Administration changed the due dates for filing information returns including W-2 Forms.

Under the previous rules, employers were able to use the time between the due date for issuing W-2 Forms to employees and the due date for filing the Forms with the SSA to correct errors detected by employees or their tax advisors. The IRS expects that the earlier filing date will result in more errors on Forms W-2 because employers will no longer have time to correct errors reported by employees prior to the filing due date. The IRS also instituted new rules regarding corrections that cover de minimus errors in dollar amounts. Except for errors meeting the new de minimus criteria, errors in dollar amounts are never de minimus and must be corrected with the SSA.

In addition, the penalties for non-compliance were increased for returns filed after December 31, 2015 and are indexed for inflation. It is more important than ever to prevent errors and correct any errors that do occur as quickly as possible.

There are also special situations where corrections are required that are not due to errors on the previously filed Forms. For example, corrections of Form W-2 due to employee repayment of a prior year wage overpayment. There are special procedures for such situations that must be followed to prevent future errors.

It is important for anyone dealing with payroll to be aware of the impact of errors on an employer in terms of costs of correction and penalties and how to eliminate or mitigate errors and the effects of errors.

Areas Covered in this Webinar:

• Filing Errors – types and causes and how to avoid them
• Correcting Forms W-2 – employee copies and filing copies
• Name and SSN Mismatches – SSN verification and reasonable cause exceptions to penalties
• Incorrect Withholding – when and how to correct
• Correcting wage underpayments and overpayments
• When Form 941 must also be corrected
• Filling out Form W-2c – box by box
• Employee Misclassification– How to correct- W-2 or W-2c ?
• New filing deadlines for 2016 information returns
• New rules regarding reporting of errors and changes to de minimus error rules
• Increased penalties for 2015 and later returns

Learning Objectives:

• Know how to use Social Security Resources to prepare, submit, and correct W-2 forms.
• Know which actions to take before year end to avoid employee information return errors.
• Be aware of common W-2 errors and how to avoid them and how to correct them if they occur.
• Know what to do when an employee’s name or tax ID number is incorrect.
• Understand methods use to reconcile to Forms 941 and what to do if differences are discovered
• Be aware of the new filing deadlines and related error correction rules
• Be aware of the increased penalties for non-compliance and how to avoid or minimize them
• Understand what is required to establish reasonable cause for discrepancies or errors
• Know how to use Form W-2c to make corrections
• Know which corrections are made using Form W-2

Who Will Benefit:

• 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

Speaker Profile:

Pat Haggerty is a tax practitioner, author, and educator. His work experience includes non-profit organization management, banking, manufacturing accounting, and tax practice. He began teaching accounting at the college level in 1988.  He is licensed as an Enrolled Agent by the U. S. Treasury to represent taxpayers at all administrative levels of the IRS and is a Certified Management Accountant.  He has written numerous articles and a monthly question and answer column for payroll publications. In addition, he regularly develops and presents webinars and presentations on a variety of topics including Payroll tax issues, FLSA compliance, and information return reporting.

Email: [email protected]
Toll Free: +1-844-746-4244
Tel: +1-516-900-5515

Fax: +1-516-900-5510

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