What happens when you receive an incorrect W2?
An incorrect W2 can create serious problems for you. You may think that it is your employer’s problem but think again. If you have received an incorrect W2, there are actions that you must take to resolve the situation. If you have to create your own, a W2 generator can help.It occurs more frequently than you may think: you receive your W2 and prepare to file your taxes, only to discover that the wages shown on it appear to be incorrect. You double-check your records and discover that the information is wrong. You must correct the problem as soon as possible because the time for submitting taxes is approaching. You have a few alternatives, and the rules and procedures are quite straightforward.
What Is a W2?
Any employer that pays an employee more than $600 must provide a W2 for each employee. A W2 includes the following information.- Income – including wages, bonuses, and non cash payments
- Taxes – including social security, Medicare, and income tax
What to Do If you Receive an Incorrect W2
The first thing to do is take action. Even if you think the error is small. Errors can lead to an IRS audit, tax penalties and fines, and even jail time. If you have verified that your records and your employer's are different, the first step is to contact your employer and request a new W2.When contacting your employer, it is best to start with the human resources department to address this issue. A small difference may be due to a simple end of year tax adjustment. In this case, you do not need to worry about it. However, if there is a big difference your employer can quickly issue a new W2. This form will be labeled as a W-2c to indicate that it is a corrected form. If you get a W-2C, make sure you double-check that information as well.Contact Your Boss
Check to see if the information on your W2 is indeed incorrect. The numbers presented may change somewhat from the amounts recorded on your last pay stub of the year. The W2 form may contain changes to taxable income or tax-free advantages. If you have found any problems, the first step is to notify your employer (or their HR/payroll department) and request that they provide you a new, proper W2 form before the end of February.When you get a correct W2 and file your taxes online, you update the original Form W2 information you supplied. If you file online, you do not need to transmit the W2C form since the IRS will get a copy from your employer. Make sure you enter the right Form W2C information and then proceed with the tax return as usual.What If Your Employer Won’t Respond
If you run into the case where an employer refuses to answer your questions, continuously issues the wrong W2, or straight refuses to issue a new W2, you need to contact the IRS. Contacting the IRS will generate a claim and protect you from prosecution, holding the employer responsible. When contacting the IRS, you will need the following information:- Name
- Social Security number
- Income that you believe to be correct
- Contact information of your employer