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ekileen
Level 3

Amend last year's payroll ?

An issue has come up with a former employee. He worked 1.5 days last summer before quitting. The resignation email explicitly stated, please don't compensate me for my time worked.

And my boss complied - I was never informed of this person, they were not paid and did not receive a W2.

 

Well, now it's April 2020 and this person is complaining that they can't file for unemployment because they don't have a W2 for this time.

So - is it possible to amend our payroll to generate a check and thus W2 for these hours worked in 2019?

I assume I'll have to redo the 941, 940 and our state taxes too.

 

Thanks for your help!

3 Comments 3
RenjolynC
QuickBooks Team

Amend last year's payroll ?

Hello ekileen,

 

If you have not closed the books yet, you can still record the employee's paychecks last year. Please note that adding payrolls from 2019 creates new tax liabilities and you will need to re-process the forms.

 

To add paychecks, you can follow the instructions here: How do I create a paycheck for an employee?. For amending the forms, I'd recommend contacting the Federal and State agencies for more information. 

 

You can also reach out to our Customer Care Team for further assistance about your concern. Before doing so, check our support hours here. Then, follow these steps:

 

  1. Go to Help > QuickBooks Desktop Help.
  2. In the Have a Question window, click the Contact Us link at the bottom.
  3. From the Contact Us page, select any topics.
  4. Under Here's how to connect with a QuickBooks expert section, click the Get Phone Number or Start a Message button.

Please let us know how it goes or if you have any additional questions. Thanks.

john-pero
Community Champion

Amend last year's payroll ?

First off. If the only W2 wages they would have had in first 4 of last 5 quarters was for 12 hours working for you they would not qualify for minimum credit weeks necessary to collect unemployment.

 

Second, you are going to face underpayment penalties for not only 941 and 940 but also state unemployment as well as state and local income tax.

 

Offer a compromise to issue a check in 2020 treating them as 1099 and that is more money in their pocket today. Their issue of being shorted a W2 for maybe an amount not even requiring the filing of a 1099 as grounds that they cannot collect unemployment is full of holes and the cost to you of creating a "replacement" check and a W2 as well as all the amending of forms will cost you more than the actual earned pay.

 

It almost borders on extortion, except that anyone who works for you, even if they are working unbeknownst to you, are eligible for at least minimum wage. They do deserve pay for their 12 hours.

 

There was a case decade's ago in PA where a farmer knowingly hired one worker in the orchard but he brought his wife to work with him and the end result was pay for both, even though the wife was not explicitly hired. Neither here nor there but

ekileen
Level 3

Amend last year's payroll ?

Thank you - extortion was the word that came to my mind as well!

 

I'll see if a 1099 would be acceptable, that would involve much less paperwork, and get more money in their pocket.

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