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    guscusi's Avatar
    guscusi Posts: 65, Reputation: 1
    Junior Member

    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: 21,834, Reputation: 846
    Senior Tax Expert

    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.

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