Have you filed an Incorrect W2 Form? Perform these Steps!

Last Updated on November 5, 2024

In a number of cases, taxpayers fill in incorrect information or amounts in their tax forms. If you have also filed a tax form with incorrect information, then you will need to fill out another form with the corrected information, also known as an amended form. Taxpayers are required to file a W-2 C form before the deadline o correct the information entered in a W-2 form. In this article, we will show you how to correct the incorrect info entered on a W-2 form and what else you are required to do in case of an incorrect W-2 form filed. Follow the IRS Guidelines to see what info can be corrected on a W-2 C and W-3 C form.

If you have filed an incorrect w-2 form but don’t want to make the corrections by yourself or are facing other payroll form issues, you can contact our experts. Our QB specialists at 1.855.738.2784 will assist you in rectifying an incorrect W-2 form.

When Is It Necessary to Correct Your Incorrect W-2 Form?

This W-2 can be used by employers to report the annual income with the withheld money to the employees. In other words, correcting a wrong W-2 form is mandatory where an employee has any pre-tax deduction at all and where he or she has any fringe benefit. A W2 correction is done using a W-2c form, which is used to change/amend the information on an original W2. You might need to correct your W2 forms if one or more of the following information is incorrect –

1. Your employee’s Social Security Number (SSN) is wrongly entered. 
2. The employee’s name isn’t spelled correctly.
3. The address on the W2 form is incorrect/wrong.
4. There are incorrect wage amounts, or tax withholding amounts have errors.
5. The retirement plan contributions or dependent care benefits in your W2 aren’t reported properly, and the amounts are incorrect.

How to Ensure Accuracy and Compliance While Correcting W2s?

Before we learn how to correct the information in your W2 forms, you must know the following best practices –

1. It is better to correct errors as soon as possible so that no harm comes to employees and fines will not be incurred.
2. Always be sure that the new information provided is correct before confirming the changes.
3. Record all changes on the document together with the dates and justification for the changes.
4. Notify the concerned employees of the corrections made and issue them the renewed W-2c form.
5. Taxpayers also need to be on the lookout for when the IRS filing dates for corrected W-2s are due in order to file them in time and not end up being penalized.
6. Bi-weekly or at least once a month, make comparisons and reconcile the payroll records.

Steps to Correct Your Incorrect W-2 Form in QuickBooks Desktop

If you’re using QuickBooks Desktop, you need to see if the wrong W2 form has already been submitted to the government or not. Depending on the scenario, you can undertake the following steps to rectify the information in your W2s –

QuickBooks Desktop Payroll Assisted

Because we complete all your W-2 forms on your behalf, you will have to contact us to make any corrections. If we make any errors, we will then correct them and submit a Form W–2c to SSA. You’ll also get an electronic copy of form W – 2c to give to your employee and a copy of form W–3 for your records. The expert you talk to can inform you how soon you and your employee should expect the W-2c and W-3c.

QuickBooks Desktop Payroll Enhanced

If you are a QuickBooks Desktop Payroll Enhanced user, go through the following info to learn how to correct the W2 info in different cases –

Case 1: You have already sent incorrect forms to your employees, but the company has not yet filed the W-2 forms that have mistakes

If the above wrong W2 forms have been tendered to the employees but not filed with the IRS, apply the following measures –

1. Once again, process all the W-2 forms along with a W-3 form with the right information.
2. Once the forms are filled with the corrected information and amount, you can file them with the IRS.
3. Now, you need to provide a new copy of the W-2 form to the employees who received the incorrect form last time.
4. Make sure to write “Corrected” at the top of every reissued form.
5. In case the employees have already filed the incorrect W-2 with the government, they have to file a 1040X along with the corrected W-2 form. (Follow the link to find out how to file your tax returns with form 1040X)
6. If your employee is still waiting to file the tax return, then they can use the correct W-2 for filing purposes and discard the incorrect one.

Case 2: You have sent incorrect forms to your employees, and the incorrect W-2 forms are filed with the IRS by your company

If the incorrect W2 form has been filed with the IRS, go through the following steps to file a W2c form and correct the information accordingly –

1. Create W-2 C forms for those employees who have received incorrect W-2 forms. You will also require file form W-3 C along with the W-2 C to make the correction in the previously filed incorrect W-2 form.
2. Under the Employees menu in the QuickBooks Desktop application, click Payroll Center.
3. Now choose Annual Form W-2c / W-3c – Corrected Wage and Tax Statement, and once you select the form, click the Create Form option.
4. Select all the employees that need the corrected form under Process W-2s for option.
5. Make sure the correct period is selected under the Select Filing Period section.
6. Click OK and select the employees who need the W-2 C under the Select Employees for Form W-2 / W-3 section.
7. Click Review / Edit and answer the questions that appear on the screen.
8. After carefully analyzing the pages, click Next on each page.
9. Checkmark the Check if this is a W-2c (corrected W-2) checkbox under the Employer’s Name section on the Form W-2 C Worksheet window.
10. Carefully enter the correct information in the columns for Previously Reported and Correct Information.
11. Skip any information that is correct and doesn’t require any changes by right-clicking the information and selecting Override.

After you have successfully created both Previously Reported and Corrected Amounts W-2 forms, you can provide the forms to the employees who need them. If the employee has already filled out the correct form, then they are not required to file W2c. Make sure your employee submits both form W-2 and W-2 C to make changes to the incorrectly filed tax information. One more important point to remember is that Form 1040X is also required to be filed if your employee has already filed an incorrect W-2 with the IRS along with the W-2 C.

QuickBooks Desktop Payroll Basic or Standard

To correct a W-2 form, you must prepare and submit a W-2c form to the Social Security Administration manually. To do this, see the section General Instructions for Forms W-2c and W-3c in the General Instructions for W2c and W3c forms series.

Now, correct the error or issue in your product, then use any other payroll reports required to fill our W2c form with the necessary adjustments and changes.

How Can You Correct Your Incorrect W-2 Form in QuickBooks Online?

Before or after filing: when you need to adjust your W2s in QuickBooks Online, you need to check if it is before or after filing the form with SSA. If you encounter any of the situations below, follow the following procedures to rectify the information in your W2s –

Case 1: Correct Your W2s Before Filing

If you find that you have not filled your W2s to the SSA, then rectify the information on the form through the following steps –

1. You have to go to QuickBooks Online Payroll, find the necessary Payroll, and choose the employee whose W2 needs some corrections.
2. Now, correct the information in the employee profile or the next payroll records and to check what changes were made, run the reports of the payroll.
3. Finally, once again, fill out the W2 form with proper details.

Case 2: Correct Your W2s When They’ve Been Filed If The Automated Taxes Are Turned Off

If the W2 form is already filed and you are not using QuickBooks automated taxes, then you can make the corrections in the following way –

1. Correct the W2 form in QuickBooks Online as per the steps provided in Case 1 above. 
2. As a next step, using the correct information for respective employees, write the W-2c form for every single employee whose data is wrong. You can download the blank copy from the official website of the IRS and fill it in with the proper information: the one stated in the initial return, and the one reported instead of them.
3. Lastly, both forms must be submitted to the SSA, and the modified copies must be provided to the employees involved.

Case 3: Correct Your W2s After Filing When Automated Taxes Are Active

If you’re using QuickBooks’ automated tax filing service and have already filed the form with SSA –

1. You can call Payroll Support at QuickBooks to get the W-2 form corrected.
2. Provide the support team with the following information:
   • Organization name and employee identification number.
   • The affected employee’s name and their social security number (SSN).
   • The correction required and its details.
   • Any other supporting documentation.
3. QuickBooks will then correct it and submit the W2c form to the SSA. QuickBooks will make both you and your employees receive copies of the W2c that are correct.

How to Make Specific Corrections to Your Incorrect W-2 Form in QuickBooks Online?

You can handle the common corrections in your W2s in QBO by using the following steps –

Case 1: Incorrect Employee’s Name or SSN

1. Select Workers, go to Employees, and choose the employees whose data should be rewritten.
2. Click Edit Employee and change the SSN or name in the employee records.
3. Save the changes, and if you have filed your W-2s, then you should follow the correct procedure mentioned in any of the scenarios above on the post-filing corrections.

Case 2: Incorrect Wage or Tax Withholding Amounts

1. Under the Payroll tab, go to Employees, and choose the employee details for whom an update is needed.
2. Click on the Paycheck list and identify the paycheck(s) that will be affected.
3. The next step is to go to the top and click “More” next to the paycheck and then choose “Void”.
4. Create a new paycheck with the right details, and if required, adjust your YTD amounts as follows –
   • Navigate to the Payroll tab, then to Employees, and select the name of the employee.
   • Now, click Pay Adjustment and fill in the correct YTD Amounts.
5. Run the updated payroll reports to ascertain the changes made. If the W2 is already filed, check through the directions provided in the section above for post-filing corrections.

Case 3: Incorrect Retirement Plan Contributions

1. Go to Payroll, select Employees, pick the affected employee, and enter his/her information that needs to be changed.
2. Click on Pay Adjustment and make changes in the contribution level of the retirement plan as may be deemed appropriate.
3. Save the modifications and rerun the updated payroll reports to confirm the changes made. If the W2 is filed, follow the section above to perform the corrections in the post-filed status.

Issues that You Might Experience in an Attempt to Correct your incorrect W-2 form in QuickBooks Online

You might face the following challenges while fixing your W2 info in QB Online –

Case 1: Not Able to Change Certain Fields

Many of the fields in QuickBooks Online may be locked for editing when the year-end closing takes place. In these cases, you’ll have to consult with QuickBooks Payroll Support.

Case 2: QuickBooks Records and Actual Payments Don’t Match

1. You must review the bank statements and go through the payroll records to ascertain where the discrepancy lies.
2. Perform necessary changes in QuickBooks with the help of the “Pay adjustment” option.
3. It would be better to seek the help of a payroll professional or an accountant if ever the disparity is big or complicated.

Case 3: Multiple Corrections Needed Across Employees and Pay Periods

1. Prioritize correcting errors according to their importance and impact.
2. Make a list so that all the adjustments can be made
3. It also wished users to temporarily pause the auto-filing of taxes (if active) to avoid erroneous submittances during correction making.

Bottom Line

This detailed article contains steps to help you rectify the incorrect info in your W2s both in QuickBooks Desktop and Online versions. If you’ve filed an incorrect W-2 form, the information listed above will help rectify the error and resubmit it. However, if you have problems with your W2 or other payroll concerns, you may require outside help. One should call the QB specialists at 1.855.738.2784 to acquire optimum solutions to the issues regarding incorrect W-2 forms. 

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Edward Martin

Edward Martin is a Technical Content Writer for our leading Accounting firm. He has over 10 years of experience in QuickBooks and Xero. He has also worked with Sage, FreshBooks, and many other software platforms. Edward’s passion for clarity, accuracy, and innovation is evident in his writing. He is well versed in how to simplify complex technical concepts and turn them into easy-to-understand content for our readers.