What forms must an employer file to report a wage overpayment that is recouped in a subsequent calendar year?

Author: Alice Gilman

An employer should file the following forms in the order shown:

  1. Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund (with the IRS), to correct the overwithheld Social Security and Medicare wages and taxes. Adjustments to income tax withholding and the additional Medicare tax cannot be made in most circumstances.
  2. Form W-2c, Corrected Wage and Tax Statement (with the Social Security Administration), to correct the overwithheld Social Security and Medicare wages and taxes. Adjustments to income tax withholding and the additional Medicare tax cannot be made in most circumstances.

The employer must also provide the employee with a copy of Form W-2c.