What Is a W-2 Amendment and How Do You File One?

When an employer discovers an error on a Form W-2 already filed with the Social Security Administration (SSA), a correction is necessary. This process, known as a W-2 amendment, ensures the employee’s wage and tax information is accurate for tax filing. Common reasons for a correction include mistakes in reported wages, tax withholdings, or an employee’s name or Social Security Number (SSN). The process involves specific forms to report the accurate information to government agencies and the employee.

Required Forms and Information for Correction

To amend a previously filed Form W-2, an employer must use Form W-2c, Corrected Wage and Tax Statement, and Form W-3c, Transmittal of Corrected Wage and Tax Statements. Form W-2c details the corrections for an individual employee’s W-2. A separate Form W-2c must be completed for each employee whose information needs to be fixed and for each tax year requiring a correction.

Form W-3c is a summary document that consolidates the totals from all individual W-2c forms for a specific year. An employer must file a Form W-3c whenever filing one or more W-2c forms with the SSA, even if the only correction is for a non-financial detail like an employee’s name or SSN.

The employer must gather the employee’s full name and correct SSN, along with the employer’s name, address, and Employer Identification Number (EIN). The employer also needs the details from the original, incorrect Form W-2 for the “previously reported” columns on Form W-2c. Finally, the correct information is required for the “correct information” columns.

When completing Form W-2c, the employer enters the incorrect figures from the original W-2 into the “Previously reported” column. The correct figures are entered into the “Correct information” column. Only complete the boxes that contain errors; other boxes can be left blank. If a dollar amount is changing to or from zero, the entry should be “-0-“. The Form W-3c is then completed by summarizing the totals from all the W-2c forms for that year.

Filing the Corrected Forms

After completing the forms, the employer must file them with the Social Security Administration by paper or electronically. For paper filing, Copy A of all Forms W-2c and the transmittal Form W-3c must be mailed to the SSA. The address for the U.S. Postal Service is Social Security Administration, Direct Operations Center, Wilkes-Barre, PA 18769-0001. For private delivery services, the address is Social Security Administration, Direct Operations Center, Attn: W-2 Process, 1150 E. Mountain Drive, Wilkes-Barre, PA 18702-7997.

The second method is electronic filing through the SSA’s Business Services Online (BSO) portal. This option is mandatory for employers filing 10 or more corrected information returns in aggregate. The BSO system allows for direct data entry or the uploading of formatted files to submit the corrections, and it provides confirmation of receipt.

The employer must also furnish the employee with their copies of the completed Form W-2c as soon as possible. This ensures the employee has the accurate information for their tax filing obligations. They may need it to amend a personal tax return if it was already filed using the incorrect data.

Amending Related Tax Returns

Correcting a W-2 often requires amendments to other tax returns filed using the erroneous information. If an employee already filed their Form 1040 personal income tax return with the incorrect W-2, they will need to file an amended return. This is done using Form 1040-X, Amended U.S. Individual Income Tax Return.

The employee will report the corrected wage and withholding amounts on Form 1040-X, which may result in an additional tax payment or a refund. The form requires an explanation of the changes and the attachment of the new Form W-2c. The employee should wait until they receive the official Form W-2c from their employer before filing an amended return.

The employer may also need to amend their own payroll tax returns. If the W-2 errors involved incorrect Social Security wages, Medicare wages, or federal income tax withholding, the employer must file Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund. This form corrects the wage and tax information previously reported to the IRS on the quarterly Form 941.

Filing Form 941-X allows the employer to correct their share of Social Security and Medicare taxes and reconcile federal income tax withheld. This is a separate filing from the W-2c and W-3c submission to the SSA and is sent directly to the IRS. This step ensures the employer’s payroll tax records are consistent with the corrected information.