Instructions for Forms W-2c and W-3c (01/2006)

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Table of Contents

Specific Instructions for Form W-2c

Box a—Tax year/Form corrected. If you are correcting Form W-2, enter all four digits of the year of the form you are correcting. If you are correcting Form W-2c, W-2AS, W-2GU, W-2CM, or Form W-2VI, enter all four digits of the year you are correcting, and also enter “c,” “AS,” “GU,” “CM,” or “VI” to designate the form you are correcting. For example, “2005” and “GU” shows that you are correcting a 2005 Form W-2GU.

Box b—Employee's correct SSN. You must enter the employee's correct SSN even if it was correct on the original Form W-2. If you are correcting the SSN, you must also check the Corrected SSN and/or name checkbox in box c and complete box h.

Box c—Corrected SSN and/or name. Check this box only if the employee's SSN and/or name on Form W-2 (or on a prior Form W-2c) was incorrect. If you check this box to correct an employee's previously reported incorrect SSN and/or name, you must enter the employee's previously reported incorrect SSN in box h and enter the employee's previously reported incorrect name in box i. Also enter the correct SSN in box b and the correct employee's name in box e. Be sure to enter both the SSN and name on all corrections, even if only one item is corrected.

You must enter the employee's full name in boxes e and i.

Box d—Employer's Federal EIN. Show the correct EIN assigned to you by the IRS in the format 00-0000000.

Boxes e and f—Employee's name, address, and ZIP code. Enter the employee's correct name and address. See the Instructions for Forms W-2 and W-3 for name formatting information. If you are correcting the name, check the “Corrected SSN and/or name” box in box c and also complete box i.

Box g—Employer's name, address, and ZIP code. This entry should be the same as shown on your Form 941, Form 943, Employer's Annual Return for Agricultural Employees, new Form 944, Employer's ANNUAL Federal Tax Return, Form CT-1, Employer's Annual Railroad Retirement Tax Return, or Schedule H (Form 1040), Household Employment Taxes.

Boxes h and i. Complete these boxes only if you are correcting an employee's previously reported incorrect SSN and/or name. You must also check box c and complete
box b and box e.

Boxes 1-20. For the items you are changing, enter under “Previously reported” the amount reported on the original Form W-2 or on a prior Form W-2c. Enter under “Correct information” the correct amount.

Do not make an entry in any of these boxes on Copy A unless you are making a change. However, see the CAUTION below.

Box 2—Federal income tax withheld. Use this box only to make corrections because of an administrative error. (An administrative error occurs only if the amount you entered in box 2 of the incorrect Form W-2 was not the amount you actually withheld.) If correcting Forms W-2AS, W-2GU, W-2CM, or Form W-2VI, box 2 is for income tax withheld for the applicable U.S. possession.

Boxes 5 and 6. Complete these boxes to correct Medicare wages and tips and Medicare tax withheld. State, local, or federal government employers should also use these boxes to correct MQGE wages. Box 5 must equal or exceed the sum of boxes 3 and 7 for 1991 and later years.

A state, local, or federal government employer correcting only social security wages and/or social security tips (boxes 3 and/or 7) for an MQGE employee for 1991 and later years must also complete Medicare wages and tips in box 5. Enter the total Medicare wages and tips, including MQGE-only wages, even if there is no change to the total Medicare wages and tips previously reported.

Boxes 8-11. Use these boxes to correct allocated tips, an advance EIC payment, dependent care benefits, or deferrals and distributions relating to nonqualified plans.

Box 12-Codes. Complete these boxes to correct any of the coded items shown on Form W-2. Examples include uncollected social security and/or Medicare taxes on tips, taxable cost of group-term life insurance coverage over $50,000, elective deferrals (codes D through H, S, Y, AA, and BB, box 12), sick pay not includible as income, and employee business expenses. See the Instructions for Form W-2 and W-3 for the proper format to use in reporting coded items from box 12.

If a single Form W-2c does not provide enough blank spaces for corrections, use additional Forms W-2c.

Box 13. Check the boxes in box 13, under “Previously reported,” as they were checked on the original Form W-2; under “Correct information,” check them as they should have been checked. For example, if you checked the “Retirement plan” box on the original Form W-2 by mistake, check the “Retirement plan” box in box 13 under “Previously reported,” but do not check the “Retirement plan” checkbox in box 13 under “Correct information.”

Box 14. Use this box to correct items reported in box 14 of the original Form W-2 or on a prior Form W-2c. If possible, complete box 14 on Copies B, C, 1, and 2 of Form W-2c only, not on Copy A.

Boxes 15-20—State/local taxes. If your only changes to the original Form W-2 are to state or local data, do not send Copy A of Form W-2c to the SSA. Just send Form W-2c to the appropriate state or local agency and furnish copies to your employees.

Correcting state information. Contact your state or locality for specific reporting information.

Specific Instructions for Form W-3c

Please do not staple or tape the Forms W-2c to Form W-3c or to each other. File a separate Form W-3c for each tax year, for each type of form, and for each kind of payer except “Third-party sick pay.” (The “Third-party sick pay” indicator box does not designate a separate kind of payer.) Make a copy of Form W-3c for your records.

Form W-3c can be filed alone (without Forms W-2c) to correct your EIN on a previously filed Form W-3. If the EIN is the only change you need to make, complete only boxes a, b, e, f, and h, and sign the form.

In the money boxes (except box 12, see Boxes 1-12 and 14 on page 4) of Form W-3c, total the amounts from each box and column on the Forms W-2c you are sending.

Box a—Tax year/Form corrected. Enter all four digits of the year of the form you are correcting and the type of form you are correcting. For the type of form, enter “2,” “2c,” “2AS,” “2GU,” “2CM,” “2VI,” “3,” “3c,” or “3SS.” For example, entering “2005” and “2” indicates that all the forms being corrected are 2005 Forms W-2.

Box b—Employer's name, address, and ZIP code. This should be the same as shown on your Form 941, Form 943, Form 944, Form CT-1, or Schedule H (Form 1040). Include the suite, room, or other unit number after the street address. If the Post Office does not deliver mail to the street address and you use a P.O. box, show the P.O. box number instead of the street address.

The IRS will not use Form W-3c to update your address of record. If you wish to change your address, file Form 8822. To get this or any other IRS form, call 1-800-TAX-FORM (1-800-829-3676) or visit the IRS website at www.irs.gov.

Box c—Kind of Payer. Check the applicable box. If your previous Form W-3 or Form W-3SS was checked incorrectly, report your prior, incorrect payer type in the “Explain decreases here:” area below box 19.

941/941-SS. Check this box if you file Form 941 or Form 941-SS and no other category (except “Third-party sick pay,” if applicable) applies.

Military. Check this box if you are a military employer correcting Forms W-2 for members of the uniformed services.

943. Check this box if you file Form 943 and you are correcting Forms W-2 for agricultural employees. For nonagricultural employees, send Forms W-2c with a separate Form W-3c, generally with the 941/941-SS box checked.

944/944-SS. Check this box if you file new Form 944 or Form 944-SS and no other category (except “Third-party sick pay,” if applicable) applies. Form 944 and Form 944-SS are new forms that can be filed instead of Form 941 or Form 941-SS beginning with calendar year 2006.

CT-1. Check this box if you are a railroad employer correcting Forms W-2 for employees covered under the Railroad Retirement Tax Act (RRTA). If you also have to correct forms of employees who are subject to social security and Medicare taxes, complete a separate
Form W-3c with the “941/941-SS” box or “944/944-SS” box checked instead.

Hshld. emp. Check this box if you are a household employer correcting Forms W-2 for household employees and you file Schedule H (Form 1040) (or Form 942 before 1995). If you also have to correct forms of employees who are not household employees, complete a separate
Form W-3c.

Medicare govt. emp. Check this box if you are a U.S., state, or local agency filing corrections for employees subject only to Medicare taxes.

Third-party sick pay. Check this box and another box such as the “941/941-SS” box if you are a third-party sick pay payer (or are an employer reporting sick pay payments made by a third party) correcting Forms W-2 and the “Third-party sick pay” box in box 13 of Form W-2c under “Correct information” is checked. File a single Form W-3c for the regular and “Third-party sick pay” Forms W-2c.

Box d—Number of Forms W-2c. Show the number of individual Forms W-2c filed with this Form W-3c or enter “-0-” if you are correcting only a previously filed Form W-3 or Form W-3SS.

Box e—Employer's Federal EIN. Enter the correct number assigned to you by the IRS in the following format: 00-0000000. If you are correcting your EIN, enter the incorrect EIN you used in box h.

Box f—Establishment number. You may use this box to identify separate establishments in your business. You may file a separate Form W-3c, with Forms W-2c, for each establishment or you may use a single Form W-3c for all Forms W-2c. You do not have to complete this item; it is optional.

Box g—Employer's state ID number. You are not required to complete this box. This number is assigned by the individual state where your business is located. However, you may want to complete this item if you use copies of this form for your state returns.

Box h—Employer's incorrect Federal EIN. Your correct number must appear in box e. Make an entry here only if the number on the original form was incorrect.

Box i—Incorrect establishment number. You may use this box to correct an establishment number.

Box j—Employer's incorrect state ID number. Use this box to make any corrections to your previously reported state ID number.

Boxes 1-12 and 14. Enter the totals of each box and each column from Forms W-2c. For box 12, enter only the total of codes D through H, S, Y, AA, and BB.

Boxes 16-19. If your only changes to the Forms W-2c and W-3c are to the state and local data, do not send either Copy A of Form W-2c or Form W-3c to the SSA. Just send the forms to the appropriate state or local agency. Furnish copies of Form W-2c to your employees.

Explain decreases here. Explain any decreases to amounts “Previously reported.” Also report here any previous, incorrect entry in box c, “Kind of Payer.” Enclose (but do not attach) additional sheets explaining your decreases, if necessary.

Signature. Sign and date the form. Also enter your title, phone number, and the name of a person to contact. If you have a fax number and/or email address, enter them. If you are not the employer, see Who may sign Form W-3c on page 2.