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Fixing Allocated Tips (Box 8) on a Form W-2

Allocated tips (Box 8) are tips an employer must report to an employee when the employee does not report tips to the employer that are equal to or greater than 8% of the establishment's gross receipts. Correcting this amount requires a W-2c to ensure accurate reporting to the SSA.

Step-by-Step Instructions

1. Open W2Correction Mate and either create a new company or open an existing one.
2. Click on the W-2C Forms Tab and then click Add W-2C Form.
3. Enter the employee details.
4. Enter the incorrect amount from Box 8 in the "Previously reported" column.
5. Enter the correct allocated tip amount in Box 8 in the "Correct information".

6. Click Save.
7. To print the employee's copy, select the W-2C Forms tab, select the employee from the list, click Print. In the dialog, select "Copy B—To Be Filed With Employee’s FEDERAL Tax Return".
8. To print the SSA copy, select the W-2C Form tab, select the employee from the list, click Print. In the dialog, select "Copy A—For Social Security Administration".
9. To e-file, select the Summary W-3C Form tab, and click E-File W-2C / W-3C Forms. Fill out information in the dialog, and click the Click here to review the W-3C form button. Click the I have reviewed the W-3C form box. Click OK. Once you create the e-File, you need to upload to the SSA BSO website.
10. Distribute the corrected form.

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Disclaimer: All tutorials provided are for informational purposes only. Please consult the IRS, your state department of revenue, or a tax professional for official advice and guidance regarding tax matters, including W2 corrections and W-2C filing.