While prepping my W-2, I realized I had a payroll item that was not included in FICA taxable wages (how, I'm not sure). Can I just over ride the W2 and make the taxable amount to what it should be? I realize this will have an affect on my 941 and will have to pay the difference EE and ER share. Will the 941 automatically pick this change up or will I need to manually adjust the 941 as well?
You can submit corrections to processed W-2 information by filing Form W-3c/W-2c. If you feel you shouldn't have received this error, please contact the tax agency for assistance.
To do this, see the General Instructions for Forms W-2c and W-3c sections in General Instructions for Forms W-2 and W-3. You can fix the issue in your product, then use any payroll reports you need to fill out the W-2c form.
I haven't printed or filed my W2's therefore asking if I can just correct them prior to issuing them. What are, if any, down stream impacts of doing this? Will my year end reports (4th Otr 941, or state) be correct, or will I have to manually modify them as well? Thanks
It's possible that other payroll forms will be affected. If you're sure to correct your employees' W-2s, I'd suggest creating a backup of your company file first. Then, run the QuickBooks Desktop update and the latest payroll tax table to have an up-to-date fix.
After performing the update, you can pull up your W-2s and review the lines that need to be corrected and overwritten. You can run payroll reports to help you identify the amounts to be entered.
Let me know how this works. Take care and have a great day!