Here is why the IRS allows a month between the time you send out W-2s to employees and the date when you must transmit the W-3 to the IRS:
I received a frantic email this morning from an employer who said he had made a mistake on an employee's W-2 form. His mistake was pretty simple: He incorrectly entered a social security number for a new employee. Since he had not yet transmitted all his W-2s to the Social Security Administration with the W-3 forms, all he had to do was re-do the one W-2. But the mistake could have been a lot less easy to fix.
The process of correcting W-2s and W-3s differs depending on the type of error. For example:
- If you find an error in an employee name or social security number, just fill out the top information on the W-2c form to make the correction. If you already transmitted the W-2 forms, you must also complete a W-3c form correcting the W-3. You don't have to re-enter all the numbers.
- If you submitted a W-2 form with a missing name or SSN, you must contact the Social Security Administration directly at 1-800-772-6270.
- If you find an error in a number (either an earnings amount or a withholding amount) and you previously reported these earnings or withholding on a Form 941 (Quarterly Report), you must complete a 941c, changing the 941 information.
Before you do any changing, read the detailed instructions in the "IRS Instructions for completing W-2c and W-3c forms" article on the IRS website.
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