Ask Experts Questions for FREE Help !
Ask
    guscusi's Avatar
    guscusi Posts: 65, Reputation: 1
    Junior Member
     
    #1

    Jan 5, 2021, 10:11 AM
    Fill out W2 when I, the employer, overpaid Social Security taxes?
    I overpaid Social Security taxes in 2020 to an employee who made 150,000 in 2020. I did not take into account the 137,000 limit on wages subject to SS withholding and paid based oin the 150,000.

    So, i need to know what should I enter in Boxes 3 and 4 of the W2? If I enter 137,700 in Box 3 (which would be the correct amount if I HAD respected the 137.000 limit), it will not actually reflect that -although by mistake- I considered 150,000 as his 2020 wages.

    Also, in Box 4, should I enter what I actually withheld from the employee (which was based on 150,000 instead of 137,000) or should I enter the amount corresponding to 137,000 (which is, of course, less than what I actually withheld).

    I am afraid that if I fill out the W2 based on what I SHOULD HAVE WITHHELD, then when I apply for a refund of the excess, the IRS or SSA with look at the W2 and the numbers will not match.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Jan 5, 2021, 10:22 AM
    For the W-2, you need to enter the max amount as specified in the instructions and the capped amount of $137K. Also enter the amount withheld based on $137K.

    Then amend the employer tax returns (Forms 940/941/944) to correct the over-payment of Social Security taxes, then separately refund to the employee what you over-withheld.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Employer is asking me to pay backdated social security and medicare taxes [ 5 Answers ]

Hi, I have been working with my employer 'X' since Jan 2012 till now. I was on F1 visa from March 2011 till Oct 1st 2012 when my employer filed H1B for me. X did not withhold social security and medicare taxes from my wages until Apr 2013. I got H1B approval notice in Oct 2012 from HR and...

My employer did not withhold enough social security taxes [ 4 Answers ]

My employer withheld 98.92 in social security taxes, roughly 20.00 less than should have been withheld. I have verified the ammounts with my last check stub, and the social security table. Upon calling the employer she informed me that it was my fault (I filled out a w4, but NEVER mentioned...

Two w2's same company social security overpaid [ 1 Answers ]

I transferred between divisions of the same company. I received two w-2's, and the company withheld too much social security tax. My electronic refund was rejected because I have two w-2's with same company ID. If I combine my W-2's together, the software says the company owes me the excess social...

Employer did not collect social security tax and medicare of H1b [ 4 Answers ]

I started working in U.S with TN Visa status from Jan 2008 to Sep 2008 then with H1B until now. I went accountant office for my income tax return and submit my W2 but had a trouble. He said my employer has not collected social security tax(SS) and medicare(MD) and I might be punished later. HR...

H-1 Visa from F-1 getting back Social security and which forms to fill [ 1 Answers ]

I am hirenshukla from India currently,I am on H-1 Visa starting from October 2005 and was on OPT (F-1 Visa)from January 2005 up to September 2005 My company deducted the Social security from my from my pay during the entire year so could you please guide me how can I get that social security...


View more questions Search