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Does an employer claiming the hire act 2013 credit, need to file an amended w2 for 2010?

Eddie Price's Profile

hire act 2013Our company recently hired a consultant to capture 2010 hire act credits.  we are ready to claim those FICA credits on our payroll tax returns.  do we need to go back and file an amended W-2 for 2010? 

Answers

(Agent, JKS Solutions, Inc.) |

The W-2 reports Gross Pay, Tax Withholding (SS, Medicare, Federal, other). Here is the W-2 link for the 2013 form. http://www.irs.gov/pub/irs-pdf/fw2.pdf.

If your payroll tax amendment caused you to refund any employee portion of the withholding taxes or change any other reportable elements on the W-2, then you would need to file amended W-2's and inform your employees they will need to amend their personal 1040 tax returns for those years involved.

However if claiming the 2010 hire act credits does NOT cause you to change any of the 2010 W-2 reportable information, then you will most likely need to only amend the employer payroll tax filings that are effected by the credits.

Quarterly Payroll Returns:
941
940
(Also consider any impact to your State filings.)

There may also be additional filings if the IRS requires any special forms to report the credit election with your business tax return.

If you are using a payroll service such as ADP, Paychex, or Ceridian, they will have information about the credits and what is required.

Disclaimer: This answer is for discussion purposes only. Be sure you seek qualified tax advice from your tax professional.

Best.

Eddie Price
Title: CFO
Company: Shoe Sensation
(CFO, Shoe Sensation) |

Valerie, thanks, we use Paycor and their tax analyst believes we do need to file corrected W-2s to get the CC code in box 12. however, employee withholding is not affected by this credit.

The consultant preparing the tax credit believes we only have to file the 941 forms. there in is the problem when two professional groups have opposing positions. thanks for the advice.

(Agent, JKS Solutions, Inc.) |

Ah. Thanks for the clarification.

The IRS would probably consider the lack of the code to be a compliance error, and they will want their pound of flesh via the maximum compliance penalty which can be as high as $50 to $100 per occurrence.

I would say its probably cheaper to amend the W-2s to include the code. Most likely the employees who have filed will not need to amend their returns if the wage and w/h amounts do not change.

Eddie Price
Title: CFO
Company: Shoe Sensation
(CFO, Shoe Sensation) |

thank you. we decided to file based on 2011 APA memo that i came across were the IRS indicated that w2c was required.

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