In the US, employers typically withhold federal income tax from compensation paid to employees and remit that withheld amount to the IRS. When an employer issues a Form W-2 to an employee, the form contains all federal tax information that is required to be reported to the tax authorities. If you made any error to your current or previously issued wage/tax information (Form W-2), a Form W-2 C can be used to make corrections.
What is Form W-2C?
Form W-2C is also known as the Corrected Wage and Tax Statement. Employers use it to correct errors on a previously filed Form W-2, W-2 (AS), W-2 (CM), W-2 (GU), W-2 (VI), or W-2 C filed with the Social Security Administration (SSA).
Requirements for Forms W-2:
The regulations lowered the threshold to 10. That means if the total information returns, including Forms W-2, W-2AS, W-2GU, and W-2VI (collectively Forms W-2), but not Form W-2CM, are more than 10, you must file them electronically.
Form W-2C Deadline
You may file corrected information for up to two years preceding the current tax year. There isn’t a specific deadline for filing Form W-2c, but it’s important to file it as soon as you discover an error on a previously filed Form W-2. The IRS and Social Security Administration (SSA) recommend correcting any mistakes promptly to avoid potential penalties and also sharing them with affected employees as soon as possible.
While you may file a correction anytime, here are the deadlines for the W-2 forms.
File before these deadlines to avoid penalties.
- Deliver Recipient copies by January 31
- IRS paper filing should also be done before or within January 31
- Similarly, if you choose to eFile with IRS, submit the forms by January 31
If a due date falls on a weekend or holiday, it will be due the next business day.
What information can I correct with Form W-2C?
Form W-2C (Corrected Wage and Tax Statement) is used to correct errors on a previously filed Form W-2. You can use it to fix mistakes related to:
- Employee’s name or Social Security Number (SSN)
- Incorrect wages, tips, or other compensation
- Federal, state, or local income tax withheld
- Social Security wages and Medicare wages
- Allocated tips and dependent care benefits
- Retirement plan and other tax-related boxes
How do you correct or void Form W-2C online?
If you previously filed with Tax1099,
Step 1: Select the Payer
Choose the payer and tax year from the dashboard.
Step 2: Enter the Corrected Information
Enter the information you need to correct. You can also void your W-2 form.
Step 3: Review and Submit to the SSA
Review the summary of the W-2 form and transmit it to the SSA.
While filing the W-2C form, you can also choose how to distribute the recipient copies for employees by postal mail, online access, or both.
