[OSSSA218] Payroll Reporting News

[Stieber Lori A]

IRS Updates Withholding Publication
There is now a January 2012 version of IRS Publication 505, Tax Withholding and Estimated Tax, on the IRS website.

There are four chapters in the publication. Payroll tax professionals and employees will primarily be interested in Chapter One of the publication, which is called "Tax Withholding for 2012." This chapter includes a discussion of the withholding tax rules on salaries and wages, tips, taxable fringe benefits, sick pay, pensions and annuities, unemployment compensation, supplemental wages, and federal payments (e.g., Social Security). Chapter One also explains how to complete a Form W-4. There is an example in Chapter One that uses actual numbers in the Personal Allowances, Deductions and Adjustments, and Two-Earner/Multiple Jobs W-4 worksheets to compute withholding allowances. A flowchart in the chapter (Figure 1-B) can be used by employees to help them determine whether they are exempt from withholding.

Form W-3c Must Be Included with Form W-2c Even if Only Correcting a Name or SSN
The Social Security Administration (SSA) is reminding employers that they should file a Form W-2c, Corrected Wage and Tax Statement, and a Form W-3c, Transmittal of Corrected Wage and Tax Statements, as soon as possible after discovering an error on a previously submitted W-2 form. Form W-3c must be filed whenever an employer files a Form W-2c, even if the employer is only filing one Form W-2c to correct an employee's name or Social Security number (SSN). A copy of Form W-2c should also be provided to the employee as soon as possible.
Employers filing their W-2c forms electronically must prepare their files in accordance with the specifications in SSA Publication EFW2C, Specifications for Filing Forms W-2c Electronically. Alternatively, employers may file electronically using the SSA's free W-2c Online service. W-2c Online allows employers to complete up to five W-2c forms on the SSA's website per submission, with a limit of 50 saved/unsubmitted reports. W-2c Online allows employers to print out copies of the forms for their employees. No special paper or software is needed.
An employer filing W-2c forms electronically in accordance with the specifications in SSA Publication EFW2C does not need to send the SSA a paper W-3c form. Form W-3c will be generated automatically if the employer files its Forms W-2c electronically on the SSA website [SSA/IRS Reporter, Reminders for Filing Forms W-2c/W-3c with Social Security, Spring 2012].



Lori A. Stieber
Lori A. Stieber, Internal Revenue Agent
Federal, State, and Local Government
1660 Oak Street, Suite 300
Salem, OR 97301
Tel: (503)587-3149
Fax: (503)585-5336



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