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Fixing Incorrect Prior-Year Adjustments

If prior-year adjustments to an employee's wages or taxes were reported incorrectly on a W-2, a W-2c must be filed to correct the information. This ensures the employee's wage history and tax records are accurate and complete.

Step-by-Step Instructions

1. Open W2Correction Mate and either create a new company or open an existing one.
NOTE:To make a prior year adjustment, the purchase of W2Correction Mate for the current and prior tax year is required. Each year must be enabled in W2Correction Mate to switch years.
2. Click on the W-2C Forms Tab and then click Add W-2C Form.
3. Verify that the "Tax Year/Form corrected" (c) is the correct tax year that you need to Correct.
4. Enter the employee details.
5. In the "Previously reported" column, enter the incorrect amounts from the original W-2.
6. In the "Correct information" column, enter the corrected amounts that reflect the prior-year adjustment.

7. Verify the information, and click Save.
8. 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".
9. 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".
10. 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.
11. 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.