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<div><b>IRS Updates Withholding Publication <br>
</b><font size="3"><span style="font-size:12pt;">There is now a January 2012 version of IRS Publication 505, </span></font><font size="3"><span style="font-size:12pt;"><i>Tax Withholding and Estimated Tax,</i></span></font><font size="3"><span style="font-size:12pt;">
on the IRS website.</span></font></div>
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<font face="Times New Roman" size="3"><span style="font-size:12pt;">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 </span></font><font face="Times New Roman" size="3"><span style="font-size:12pt;"><i>Personal Allowances, Deductions and Adjustments, and Two-Earner/Multiple
Jobs</i></span></font><font face="Times New Roman" size="3"><span style="font-size:12pt;"> 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.</span></font></span></font></div>
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<div><b>Form W-3c Must Be Included with Form W-2c Even if Only Correcting a Name or SSN </b></div>
<div><font size="3"><span style="font-size:12pt;">The Social Security Administration (SSA) is reminding employers that they should file a Form W-2c, <i>Corrected Wage and Tax Statement,</i> and a Form W-3c, <i>Transmittal of Corrected Wage and Tax Statements,</i>
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.</span></font></div>
<div style="text-indent:9pt;"><font size="3"><span style="font-size:12pt;">Employers filing their W-2c forms electronically must prepare their files in accordance with the specifications in SSA Publication EFW2C, <i>Specifications for Filing Forms W-2c Electronically.</i>
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.</span></font></div>
<div style="text-indent:9pt;"><font size="3"><span style="font-size:12pt;">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, <i>Reminders for Filing Forms W-2c/W-3c with Social Security,</i> Spring 2012].</span></font></div>
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<div><font face="Mistral" size="5"><span style="font-size:18pt;">Lori A. Stieber</span></font></div>
<div><font face="Arial" size="2"><span style="font-size:10pt;">Lori A. Stieber, Internal Revenue Agent</span></font></div>
<div><font face="Arial" size="2"><span style="font-size:10pt;">Federal, State, and Local Government </span></font></div>
<div><font face="Arial" size="2"><span style="font-size:10pt;">1660 Oak Street, Suite 300</span></font></div>
<div><font face="Arial" size="2"><span style="font-size:10pt;">Salem, OR 97301</span></font></div>
<div><font face="Arial" size="2"><span style="font-size:10pt;">Tel: (503)587-3149</span></font></div>
<div><font face="Arial" size="2"><span style="font-size:10pt;">Fax: (503)585-5336</span></font></div>
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