We are a mid-size restaurant group with a large number of tipped employees. Some employees do not make enough wages on their paychecks to withhold the full 6.2% of Social Security Tax. As a result, we report the under-collected tax on line 9 of the 941 each quarter. Also, as a result of this, we report the annual total of under-collected tax in box 12 in the W2 form with code A. Although this is how the IRS instructs to handle this type of issue, QuickBooks registers as an error because box 4 doesn’t equal the 6.2% of gross wages. Since there’s an error, it will not allow us to upload W2s to the Intuit paycheck portal or to Efile the return.
Is is there a work around for this? Perhaps a payroll item to report the under-collected tax on the actual paycheck that then transposes that figure to the appropriate line on 941 and box on W2?
Re: Help with undercollected SS tax and efiling W2
Hi there, angelkinard.
QuickBooks Desktop does not allow e-filing of tax form with errors on it. Though, if that is the instruction given to you by the IRS, you might want to print the form instead. Then, mail the W-2 copies to your employees and to the respective tax agencies.
Click the Skip option when prompted abut the error, then select the Print button. Also, make sure that you enter data to all required fields before printing them out.
In addition, the filing and printing instructions are given if you go the last page of the form. I'm just around the corner if you have follow-up questions.