Allied Consulting has 50 employees. In January, the payroll manager prepared all W2s and clicked "Submit to SSA." However, she immediately realized that she had used the wrong software setting—instead of reporting wages in Box 1, the system had pulled gross wages including non-taxable reimbursements. The error meant employees would overpay federal income tax by an average of $2,000 each.
Fix: Box 1 (Medicare wages) can be higher than Box 3 (SS wages) if the employee earns above the SS cap. But if it is lower, check for 401(k) deferrals. Adjust correctly. w2.javedit
| Feature | w2.javedit | Form W2-C | | :--- | :--- | :--- | | | Before SSA submission deadline | After SSA acceptance | | Form Type | Digital draft | Official IRS correction form | | Employee Impact | No notification needed | Must provide Copy B to employee | | SSA Fee | None | No fee, but administrative burden | | Multiple edits | Unlimited | Each W2-C supersedes previous | Allied Consulting has 50 employees
Fix: In multi-user environments, ensure no other payroll admin has the same W2 open. Log out and back in. Fix: Box 1 (Medicare wages) can be higher