Form W-2C: Corrected Wage and Tax Statement

Form W-2C is used by employers to correct certain information previously reported on Form W-2.

Have questions? Reach out to us. We’re here to help.

Introduction

Form W-2C, Corrected Wage and Tax Statement, is a federal wage reporting form used by employers to correct certain information previously reported on Form W-2. The form may be used when an error is discovered in an employee’s wage, tax, or identifying information.

This guide provides general information about Form W-2C, including who may use the form, the information commonly needed, and the basic process for completing it. The information is intended to provide a simple overview of Form W-2C and its general purpose.

What Is Form W-2C?

Form W-2C is used to correct information previously reported on Form W-2. It generally allows an employer to provide corrected wage and tax information when the original Form W-2 contained an error.

Form W-2C commonly involves:

Employee identifying information
Employer identifying information
Previously reported wage information
Corrected wage information
Federal income tax information
Social Security wage information
Medicare wage information
State wage and tax information
Local wage and tax information
Other applicable corrections

The information reported on Form W-2C should generally be based on the employer’s payroll and employment tax records.

Who Uses Form W-2C?

Form W-2C is generally used by employers that need to correct information previously reported on Form W-2. Corrections may be necessary when an employer discovers an error after an original wage and tax statement has been prepared or submitted.

Employees may receive a corrected Form W-2C when information reported on their original Form W-2 needs to be changed. Employers are generally responsible for preparing and providing applicable corrected wage information.

What Information Is Needed?

The information needed to complete Form W-2C generally comes from the original Form W-2, payroll records, employee records, and employment tax records. Employers should identify the information that was originally reported and determine the correct information.

Common information includes:

Employer name
Employer identification number
Employer address
Employee name
Employee address
Employee Social Security number or other identifying information
Original wage amounts
Corrected wage amounts
Original tax amounts
Corrected tax amounts
State information, when applicable
Local information, when applicable

The specific information required may depend on the type of correction being made and the circumstances involved.

How to Fill Out/Complete Form W-2C

Form W-2C is generally completed by reviewing the original Form W-2, identifying the incorrect information, and entering the corrected information. The correction should generally be supported by the employer’s payroll and employment tax records.

The basic process is to gather the original Form W-2 and supporting records, identify the information that needs to be corrected, enter the applicable original and corrected amounts, review the completed form, and provide or submit the corrected information as required. Employers should retain records supporting the correction.

Section 1

Enter the employer’s identifying information and applicable employee information. This generally includes the employer’s name, address, employer identification number, employee name, address, and identifying information.

The information should be reviewed carefully to make sure it is accurate and consistent with the employer’s payroll and employee records.

Section 2

Identify the employee and the original Form W-2 information being corrected. The applicable information should generally match the employee and wage statement associated with the correction.

Employers should compare this information with the original Form W-2 and payroll records to help ensure that the correction is associated with the correct employee and reporting information.

Section 3

Enter the corrected wage and tax information. This generally involves reporting the information that was originally provided and the corrected information where applicable.

Employers should carefully compare the original and corrected amounts with their payroll records. Only information that requires correction should generally be changed.

Section 4

Correct applicable federal income tax information when required. The amounts should generally be based on the employer’s payroll and withholding records.

Employers should review the original and corrected federal income tax amounts carefully to make sure the correction accurately reflects the employee’s records.

Section 5

Correct applicable Social Security wage and tax information when required. The information should generally agree with the employer’s payroll and employment tax records.

Employers should review the Social Security information carefully because corrections may affect the employee’s wage and tax records.

Section 6

Correct applicable Medicare wage and tax information when required. The amounts should generally be based on the employer’s payroll records and the applicable employment tax information.

Employers should compare the original and corrected amounts with their records before completing the correction.

Section 7

Correct applicable state wage and tax information when required. The information should generally reflect the corrected amounts reported under the applicable state reporting requirements.

Employers should review state information carefully and make sure the corrected information agrees with their payroll and state reporting records.

Section 8

Correct applicable local wage and tax information when required. The information should generally reflect the correction being made to the original Form W-2.

Employers should verify the local jurisdiction and applicable amounts before submitting or providing the corrected wage statement.

Section 9

Enter any other applicable corrected information required by Form W-2C. Only information that applies to the correction should generally be included.

Employers should maintain supporting records for any corrected amounts or information reported on Form W-2C.

Section 10

Review the completed Form W-2C and make sure all applicable corrections have been entered. Check the employer information, employee information, original amounts, corrected amounts, federal tax information, state information, and local information.

The corrected statement should be provided or submitted according to the applicable reporting requirements. Employers should also keep a copy of Form W-2C and supporting payroll records for their records.

Final Review

Review Form W-2C after completing all applicable sections. Check the employer information, employee information, original Form W-2 information, corrected wages, federal income tax, Social Security wages and tax, Medicare wages and tax, state information, local information, and final corrections.

A final review can help identify calculation or reporting errors before the corrected statement is provided or submitted. Employers should retain Form W-2C, the original Form W-2, and supporting payroll records with their employment tax records.

Common Mistakes

Common Form W-2C mistakes may include correcting the wrong employee, entering incorrect employer information, or reporting corrected amounts that do not agree with payroll records. Failing to properly compare the original Form W-2 with the corrected information can also create problems.

Other mistakes may include correcting information that does not require a change, entering incorrect federal or state tax amounts, using incorrect employee identifying information, leaving required information incomplete, or submitting the correction without reviewing it. Comparing Form W-2C with the original Form W-2 and payroll records before filing can help identify potential errors.

Related IRS Forms

Employers and employees may encounter other federal tax forms when reporting or correcting wages, employment taxes, and income. Different forms are used for original wage reporting, corrected wage reporting, employment tax reporting, and individual tax reporting.

Common related forms include:

Form W-2 for reporting employee wages and certain tax information
Form W-3 for transmitting wage and tax statements
Form 941 for reporting quarterly employment taxes
Form 943 for reporting employment taxes related to agricultural employees
Form 944 for certain employers that report employment taxes annually
Form 1040 for individual federal income tax reporting

The appropriate form depends on the employer’s or employee’s specific circumstances and the type of information being reported or corrected.

Where to File or Submit

Form W-2C is generally provided to the employee and submitted according to the applicable corrected wage reporting requirements. The appropriate submission method may depend on the type of correction and the employer’s circumstances.

Employers should review the applicable filing and reporting requirements before submitting Form W-2C. A copy of the completed correction, the original Form W-2, and supporting payroll records should generally be retained for the employer’s records.

Current IRS Form & Instructions

Employers should use the applicable version of Form W-2C and its instructions when preparing a corrected wage and tax statement. Forms and requirements can change, so the version used should correspond with the reporting circumstances.

Before providing or submitting Form W-2C, review the form and instructions carefully and confirm that the corrected information agrees with the original Form W-2, payroll records, and employment tax records. This can help identify errors before the correction is submitted.

Important Information / Disclaimer

This Form W-2C guide is provided for general informational purposes only and is intended to provide a basic overview of Form W-2C and common information associated with correcting employee wage and tax information. This information is not tax, legal, accounting, or financial advice, and wage reporting and employment tax requirements can vary depending on an employer’s circumstances.

Employers and taxpayers are responsible for determining their applicable filing, payment, recordkeeping, and reporting requirements, and information on this page may not cover every situation, exception, or special rule that may apply. When appropriate, employers and taxpayers should consider seeking assistance from a qualified tax professional or other qualified advisor regarding their specific tax situation, wage reporting correction, employment tax issue, or Form W-2C filing requirements.