Processing corrected payroll tax forms

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For payroll compliance (annually licensed)

Corrected payroll tax forms must be processed in the Actions > Edit Payroll Tax Forms screen.

The application supports corrected forms 1099, 941-X, 943-X, 944-X, 945-X, W-2c, and 1094-C/1095-C. Use the following procedure to set up the information and process the corrected form.

Note: A corrected form will be available in the Edit Payroll Tax Forms screen only if the form that it corrects is available to file.

1099 forms

The process for correcting 1099 forms differs depending on the reason for correction.

Incorrect amount or 1099 was filed in error

  1. Choose Actions > Edit Payroll Tax Forms.
  2. In the Edit Payroll Tax Forms screen, select the appropriate client from the Client drop-down list at the top of the screen.
  3. Choose Corrected from the Form type drop-down list and 1099 from the Form drop-down list.
  4. In the Originally Filed Form field, select the form for which the original error was made. The Corrected Form to be filed field defaults to the same selection, which is appropriate for this type of correction.
  5. Select the Year of the form to correct, and then click the Refresh button. Select a copy to view from the Form drop-down list.
  6. In the Recipient Selection tab, the Available Recipients pane displays all vendors or recipients that are set up to receive a 1099 form for either the originally filed form type or the corrected form to be filed. Use the Select button (or double-click the recipients in the list) to move the recipients that require corrected forms into the Selected Recipients pane.
  7. The Original - Recipient Data tab displays the original form data for the recipients that you selected in the Recipient Selection tab. Verify that the amounts are reported as they were originally filed.

    Note: You have the option here to modify information if needed, and to clear any overrides in this tab (using the Override and Clear All Overrides buttons).

  8. On the Corrected - Recipient Data tab, make the appropriate changes to the recipient data, verifying that the amounts are what should have been filed.

    Notes

    • The information in the Original – Recipient Data tab and the Corrected – Recipient Data tab reflect the data and setup information that is currently set up in the client record. Therefore, If you have not yet corrected the information in the client record, make the desired corrections on the Corrected – Recipient Data tab only. If you have already corrected the information within Accounting CS, edit the Original – Recipient Data tab to match the form as it was originally filed and then make sure that the desired corrections exist on the Corrected - Recipient Data tab.
    • If the original 1099 was filed in error, the amounts on the corrected tab should be zero.
  9. Make any necessary changes to the information on the Client Data tab.
  10. When you have made all necessary changes, click the Process Client Forms process client forms button at the top of the screen or choose File > Process Client Forms. The application creates:
    • A corrected 1099 form reporting how the amount boxes should have been reported
    • A 1096 form, summarizing the amounts from the Corrected 1099. Unlike other corrections, a 1099 with wrong amount does not require a notation at the bottom.
  11. In the Process Client 1099 Forms dialog, select the appropriate copies, select a filing method, and then click the Process Selected button to print the paper copies and/or queue the internet files.
  12. For forms using the Internet filing method, follow the steps in the  Processing internet and magnetic files topic.

No recipient ID number, incorrect recipient TIN, or incorrect recipient name

  1. Choose Actions > Edit Payroll Tax Forms.
  2. In the Edit Payroll Tax Forms screen, select the appropriate client from the Client drop-down list at the top of the screen.
  3. Choose Corrected from the Form type drop-down list and 1099 from the Form drop-down list.
  4. In the Originally Filed Form field, select the form for which the original error was made. The Corrected Form to be filed field defaults to the same selection, which is appropriate for this type of correction.
  5. Select the Year of the form to correct, and then click the Refresh button. Select a copy to view from the Form drop-down list.
  6. In the Recipient Selection tab, the Available Recipients pane displays all vendors or recipients that are set up to receive a 1099 form for either the originally filed form type or the corrected form to be filed. Use the Select button (or double-click the recipients in the list) to move the recipients that require corrected forms into the Selected Recipients pane.
  7. The Original - Recipient Data tab displays the original form data for the recipients that you selected in the Recipient Selection tab no recipient TIN, incorrect recipient TIN, or incorrect recipient name).
  8. On the Corrected - Recipient Data tab, enter the information as the file should have been filed initially, and add the correct information in the amount boxes.

    Note: The information in the Original – Recipient Data tab and the Corrected – Recipient Data tab reflect the data and setup information that is currently set up in the client record. Therefore, If you have not yet corrected the information in the client record, make the desired corrections on the Corrected – Recipient Data tab only. If you have already corrected the information within Accounting CS, edit the Original – Recipient Data tab to match the form as it was originally filed and then make sure that the desired corrections exist on the Corrected - Recipient Data tab.

  9. Make any necessary changes to the information on the Client Data tab.
  10. When you have made all necessary changes, click the Process Client Forms process client forms button at the top of the screen or choose File > Process Client Forms. The process creates the following.
    • A corrected 1099 form showing how the form was originally submitted, but with the money amount boxes blank.
    •  A 1099 form showing what should have been submitted, including the correct amounts in the amount boxes.
    • A 1096 form, summarizing the amounts from the Corrected 1099. Unlike other corrections, a 1099 with wrong amount does not require a notation at the bottom.
  11. In the Process Client 1099 Forms dialog, select the appropriate copies, select a filing method, and then click the Process Selected button to print the paper copies and/or queue the internet files.
  12. For forms using the Internet filing method, follow the steps in the  Processing internet and magnetic files topic.

Wrong type of return

  1. Choose Actions > Edit Payroll Tax Forms.
  2. In the Edit Payroll Tax Forms screen, select the appropriate client from the Client drop-down list at the top of the screen.
  3. Choose Corrected from the Form type drop-down list and 1099 from the Form drop-down list.
  4. In the Originally Filed Form field, select the form type that was initially filed.
  5. In the Corrected Form to be filed field, select the form type that should have been filed.
  6. Select the Year of the form to correct, and then click the Refresh button. Select a copy to view from the Form drop-down list.
  7. In the Recipient Selection tab, the Available Recipients pane displays all vendors or recipients that are set up to receive a 1099 form for either the originally filed form type or the corrected form to be filed. Use the Select button (or double-click the recipients in the list) to move the recipients that require corrected forms into the Selected Recipients pane.
  8. The Original - Recipient Data tab displays the original form data for the recipients that you selected in the Recipient Selection tab.
    • Verify the recipient name, EIN, and address
  9. On the Corrected - Recipient Data tab, make the appropriate changes to the recipient data.
    • Verify the recipient name, EIN, and address.
    • Complete the amount boxes as they should have been filed.

    Note: The information in the Original – Recipient Data tab and the Corrected – Recipient Data tab reflect the data and setup information that is currently set up in the client record. Therefore, If you have not yet corrected the information in the client record, make the desired corrections on the Corrected – Recipient Data tab only. If you have already corrected the information within Accounting CS, edit the Original – Recipient Data tab to match the form as it was originally filed and then make sure that the desired corrections exist on the Corrected - Recipient Data tab.

  10. Make any necessary changes to the information on the Client Data tab.
  11. When you have made all necessary changes, click the Process Client Forms process client forms button at the top of the screen or choose File > Process Client Forms. The application creates:
    • A corrected 1099 form showing how the form was originally submitted, but with the money amount boxes blank
    • The 1099 form that should have been submitted, including the correct amounts in the amount boxes.
    • A 1096 form with a notation at the bottom containing the notation "Filed to Correct Return".
  12. In the Process Client 1099 Forms dialog, select the appropriate copies, select a filing method, and then click the Process Selected button to print the paper copies and/or queue the internet files.
  13. For forms using the Internet filing method, follow the steps in the  Processing internet and magnetic files topic.

See also: General Instructions for Certain Information Returns.

94X-X forms

  1. Choose Actions > Edit Payroll Tax Forms.
  2. In the Edit Payroll Tax Forms screen, select the appropriate client from the Client drop-down list at the top of the screen. Choose Corrected from the Form type drop-down list and the specific form from the Form drop-down list. Depending on the form type you choose, you'll need to select the year or the quarter and year for which information is to be retrieved to the form.
  3. Click the Refresh button to display the form, which contains information based on the time period you have specified.
  4. Enter information on the form as appropriate.

    Notes

    • It is important to enter an appropriate date in the Enter the date you discovered errors field. If there is an overpayment and the form is set up to apply overpayments to the next return, the quarter to which the overpayment will be applied is based on the discovery date. For example, if you are using Form 941-X to correct the first quarter Form 941, the discovery date must be prior to the end of the second quarter for the overpayment to be applied to the second quarter.
    • The application will retrieve both the original and corrected columns of the form. You will need to modify whichever column needs to be adjusted.
    • There is no corrected Form 940. You can submit an amended 940 form by opening the reconciliation form, placing an X in the Amended checkbox in the Type of Return section and then entering the corrections on the form. Review the instructions for the appropriate year's Form 940 on the IRS website to determine how to file the amended paper return.
    • You must use the Paper filing method for the Form 941-x Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund even if you have previously transmitted Form 941 electronically.
  5. Click the Process Client Forms process client forms button at the top of the screen or choose File > Process Client Forms.
  6. In the Process Client Forms dialog, select the form to print and click the Process Selected button.

W-2c forms

  1. Choose Actions > Edit Payroll Tax Forms.
  2. In the Edit Payroll Tax Forms screen, select the appropriate client from the Client drop-down list at the top of the screen.
  3. Choose Corrected from the Form type drop-down list, and W-2c from the Form drop-down list.
  4. Select the form for which the original error was made in the Form to be corrected drop-down list.
  5. Next, select the Year of the form to correct and click the Refresh button. Select a copy to view from the Form drop-down list.
  6. On the Employee Selection tab, the available Employees pane displays all employees for the active client. Use the Select button, or double-click, to move only those employees that require corrected forms into the Selected Employees pane.
  7. The Original - Employee Data tab displays the original form data for the employees that you selected in the Employee Selection tab. You have the option here to modify information if needed, and to clear any overrides in this tab (using the Override and Clear All Overrides buttons).
  8. On the Corrected Employee Data and/or Client Data tabs, make any changes to the information .

    Notes

    • The information in the Original - Employee Data tab and the Corrected - Employee Data tab reflect the data and setup information that is currently in the client record. Therefore, If you have not yet corrected the information in the client record, make the desired corrections on the Corrected - Employee Data tab only. If you have already corrected the information within Accounting CS, edit the Original - Employee Data tab to match the form as it was originally filed and then make sure that the desired corrections exist on the Corrected - Employee Data tab.
    • Box 12 and Box 14 codes are populated from payroll items currently set up for the client. If additional W-2 Box 12 or Box 14 codes are needed, you will need to do one of the following.
      • Set up additional payroll items for the client with the appropriate W-2 boxes selected on the Main tab of the Setup > Payroll Items screen.
      • Add or edit existing Box 12 or Box 14 items in the Other W-2 Items dialog, accessed from the Personal tab of the Setup > Employees screen.
      • Add or edit existing Box 14 items by adding a Box 14 code next to a tax in the Payroll Taxes tab of the Setup > Clients screen.
    • Per IRS instructions for Forms W-2c and W-3c, you should not print Box 14 corrections on Copy A. For more information about making corrections to Box 14 codes and amounts for Forms W-2c and W-3c, see the IRS instructions.
    • To add information to the Explain decreases here section of form W-3c, enter it in the  Explain decrease field within the Corrected - Client Data tab of the Edit Payroll Tax Forms screen.
  9. When all necessary changes have been made, click the Process Client Forms process client forms button at the top of the screen or choose File > Process Client Forms.
  10. In the Process Client W-2c Forms dialog, select the appropriate copies, select a filing method, and then click the Process Selected button to print the paper copies and/or queue the internet files.
  11. For forms using the Internet filing method, follow the steps in the  Processing internet and magnetic files topic.

Special situations for correcting Form W-2

  • Correcting an employee's name and/or SSN only
  1. Follow the steps above in the W-2c forms section.
  2. Verify that the previously reported name and/or SSN is entered on the Original - Employee Data tab.
  3. Enter the desired name and/or SSN on the Corrected - Employee Data tab. The application fills in Boxes A through I, leaving Boxes 1 through 20 blank, per IRS instructions
    Correcting an employee’s name and/or social security number (SSN) only. If you are correcting only an employee’s name and/or SSN, complete Form W-2c boxes d through i. Do not complete boxes 1 through 20. Advise your employee to correct the SSN and/or name on his or her original Form W-2.
  • Correcting an incorrect tax year or EIN (paper filing only)

Corrections for these issues (incorrect tax year or EIN) are not automated via Accounting CS, but you can follow the two-part process below to manually correct your W-2 forms if necessary. 

Unlike other corrections made on Form W-2c, these errors require you to file two copies of the form. The first copy needs to include the incorrect tax year or EIN and reduce all previously reported amounts to zero. The second copy needs to include the corrected amounts (with zeros in the previously reported columns) and the correct EIN. 

  1. Zero the amounts for the original W-2 form.
    1. Leave the original (incorrect) tax year or client EIN set for the client in the Main tab of the Setup > Clients screen.
    2. Process the corrected W-2 form (as specified in the prior section) and leave all the original amounts on the Original - Employee Data tab.
    3. Zero out all the amounts for all employees on the Corrected - Employee Data tab.
    4. Print W-2c/W-3 forms.
  2. Enter the correct EIN and re-enter the amounts.
    1. Choose Setup > Client, choose the appropriate client, and enter the correct client EIN on the Main tab.
    2. Process the corrected W-2 form (for the correct tax year) and zero out all the amounts for all employees in the Original - Employee Data tab.
    3. Enter the correct amounts for all employees on the Corrected - Employee Data tab.
    4. Go to File > Layout Designer and open layout W3cFAC.
    5. Delete the variable in Box H.
    6. Choose Insert > Text Box and create a text box containing the originally reported (incorrect) EIN.
    7. Choose File > Save, and close the Layout Designer.
    8. Print W-2c/W-3 forms.

Before processing any additional W-3c forms, open the W3cFAC layout in the Layout Designer, and choose File > Restore Default.

1094-C and 1095-C forms

  1. Choose Actions > Edit Payroll Tax Forms.
  2. In the Edit Payroll Tax Forms screen, select the appropriate client from the Client drop-down list at the top of the screen.
  3. Choose Corrected from the Form type drop-down list and 1095-C from the Form drop-down list.
  4. Select either 1094-C or 1095-C in the Form to be corrected field.
  5. Next, select the Year of the form to correct and click the Refresh button.

Form 1094-C

  1. If you select Form 1094-C, the 1094-C tab and the Corrected - Client Data tab display.
  2. In the 1094-C tab, which displays a preview of the Corrected 1094-C form, the Corrected checkbox is marked automatically. You can make changes on the Corrected - Client Data tab.
  3. If you plan to process the corrected form using the internet filing method, click the Transmission Details button, and enter the original receipt ID and submission ID in the Corrected File Transmission Details dialog.
    Note: For help finding this information, see Locating transmission information for corrected form 1094-C and 1095-C internet files.
  4. Click the Process Client Forms  process client forms button at the top of the screen or choose File > Process Client Forms.
  5. In the Process Client Forms dialog, mark the checkbox next to the corrected 1094-C form, select a filing method and then click the Process Selected button to print the paper copy or queue the internet file.
  6. For forms using the Internet filing method, follow the steps in the  Processing internet and magnetic files topic.

Form 1095-C

  1. If you select Form 1095-C, the Employee Selection tab and the Corrected - Client Data tab display.
  2. In the Employee Selection tab, use the Select button, or double-click, to select only those employees that require corrected forms.
  3. Click the Corrected - Client Data tab to display the 1094-C tab, the 1095-C tab,  and the Corrected - Employee Data tabs.
  4. Click the Corrected - Employee Data tab and make any necessary changes. Information changed here will be reflected in the preview of Form 1095-C on the 1095-C tab.
  5. If you plan to process the corrected form using the internet filing method, click the Transmission Details button, and enter the original receipt ID, submission ID, and the record identifier for each employee in the Corrected File Transmission Details dialog.
    Note: For help finding this information, see Locating transmission information for corrected form 1094-C and 1095-C internet files.
  6. Click the Corrected - Client Data tab an make any necessary changes. The Certification of Eligibility checkboxes and 1094-X Part III information cannot be modified.
  7. Click the Process Client Forms  process client forms button at the top of the screen or choose File > Process Client Forms.
  8. In the Process Client Forms dialog, select the appropriate forms, select a filing method, and then click the Process Selected button to print the paper copies and/or queue the internet files.
  9. For forms using the Internet filing method, follow the steps in the  Processing internet and magnetic files topic.

Overriding information in corrected forms

The following animations show how to expand the information in the Corrected Employee Data and Recipient Data tabs to correct the data for individual employees and recipients. To undo any changes you make in the grids, you can use the Clear Override or Clear All Overrides buttons.

Correcting employee data

Correcting recipient data

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