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Fixing Fringe Benefit Adjustments

Fringe benefits, such as health insurance or vehicle usage, are often taxable and must be included in an employee's W-2. If these were omitted or reported incorrectly, a W-2c must be filed to adjust the reported amounts. This ensures the employee's taxable income is accurate for federal, and potentially FICA, taxes.

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 employee details.
4. In the "Previously reported" column, enter the amounts from the original W-2.
5. In the "Correct information" column, enter the corrected amounts that include the fringe benefits. NOTE: Verify if the fringe benefits are subject to state &/or local taxes, if so, complete those sections accordingly as well.

6. Review the information and 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. File a Form 941-X if the adjustment impacts Medicare or Social Security wages.
11. Distribute the corrected W-2c.

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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.