x Want to participate? Join the group to interact
Options
  • State Not Answered
  • Replies 1 reply
  • Subscribers 41 subscribers
  • Views 600 views
  • Users 0 members are here
Browse Forums
Announcements
150
topics
113
replies
General Discussion
5k
topics
13k
replies
Payroll & Tax
631
topics
887
replies
Reporting and Analytics
573
topics
1k
replies
Service Alerts
1
topics
0
replies
Software Development Kit (SDK)
434
topics
671
replies
Year End
83
topics
128
replies
Mat Phillips

Withheld too much Social Secrutiy need to fix W2s

Posted By

I made an error while paying employees that wanted their bonuses to have taxes taken out. I took too much Social Security out and when they run the W2 for a refund on taxes it says "employer owes you a refund". 

How do I issue a refund for that over withdraw for 2021 so that I can reprint the W2 updated so that they can finish their taxes?

I am not an accountant and barely able to function Sage, so please be patient with me.

Thanks

Matt

  • 0

    After some thought. Can I do the following???

    Write a back dated check (2021) to the employee for the amount of refund needed. But instead of using hours to pay I put the amount into the Soc_Sec (social security) line as a positive number and then a negative into the Soc_Sec_C (the collected for business).

    Example a normal check paid by hours would be as follows

    Fed_Income = -xx.xx 

    Soc_Sec = -yy.yy

    Medicare = -zz.zz

    Soc_Sec_C = +yy.yy

    Medicare_C = +zz.zz

    So I would right a check like this 

    Soc_Sec = +yy.yy (amount needed as refund)

    Soc_Sec_C = -yy.yy

    Thus giving them back the too much withheld and at the same time removing the amount from the business.

    Is this true and or correct?

*Community Hub is the new name for Sage City