Hopefully, the de minimis safe harbor for minor math errors on your W-2s will cut down on the number of Forms W-2c you need to file. But maybe not. You need to pull out employees who opted out of the safe harbor (those pesky accountants want accurate W-2s); W-2s with errors of more than $100 or $25 in tax withholding; and forms with other errors, like incorrect Social Security numbers, because those errors don’t qualify for safe harbor treatment. Key: Penalties will skyrocket if W-2s aren’t corrected promptly.
Early action recommended. The earlier you fix errors on your 2017 W-2s, the less likely it is you’ll be penalized by the IRS. If you correct your errors within 30 days, the penalty is $50 a form. If you wait until after Aug. 1, 2018, the penalty is $270 a form.
SAFE HARBOR TRAP: While the safe harbor should provide you with some breathing space, you have to ensure that employees have specified the forms to whic...(register to read more)