Year End Correction Payrolls

You might need to perform a Year End Correction payroll and create W2C forms if you have finished a Year End payroll, sent W2 forms to employees, and then discover that one or more W2 forms contain incorrect information, such as pay, the employee's name, or their social security number.

Any changes to money fields should be done via a Year End Correction payroll, and only then the form should be edited via the Add New W2C button (under Payroll > Forms > W2C). Any changes to the Name/SSN in the W2C will be overwritten after a Year End Correction payroll is run.

The correct order therefore should be:

  1. Run a Year End Correction payroll for changes to amounts.

  2. Make edits to the Name/SSN using the Add New W2C button.

Year End Correction Payroll Security Permissions

To configure security permissions, navigate to Settings > Profiles/Policies > Security. Under the Payroll tab, within the Pay Statements section, enable the Year End Correction checkbox to give the user access to the Year End Correction payroll process. Enable the EFW2 Filing checkbox to give users the ability to work with EF W2C forms.

A Company Administrator must enable the Year End W2 File Generator in Marketplace > Marketplace Setup in order for you to use the EFW2 Filing checkbox in the Security Profile.

Under the HR tab, within the Employee section, the W2C field is where you can enable or disable access for users. To allow users to add a new W2C form, enable the Add checkbox. To allow managers to view/edit W2C forms, set W2C to View/Edit, which allows managers to see the W2C menu item under Team > Forms. Grant access to delete W2C forms by enabling the Delete checkbox.

Performing a Year End Correction Payroll

The following sections take you through the process for performing a Year End Correction payroll.

Sign Off on the Year's Payroll

Before you can create a Year End Correction payroll, you must have all payrolls for that year closed and signed off. To verify that you've done this, check the Company Tax Quarters page (at Payroll > Quarter / Year End Process > Company Tax Quarters) and the Company Tax Years page (at Payroll > Quarter / Year End Process > Company Tax Years).

If the year's payroll is not signed off, the system does not allow you to create a Year End Correction payroll.

Create the Year End Correction Payroll

When you are ready to create a Year End Correction payroll, follow these steps:

  1. Go to Process Payroll (at Payroll > Process Payroll).

  2. Select Add New.

  3. In the Payroll Type field, select Year End Correction.

  4. In the EIN field, select the EIN in which you will create the payroll (or leave the field set to Default).

  5. Follow all the steps that you would use to create a regular payroll (as explained in the Managing and Processing Payroll topic).

Note: Year End Correction payrolls have some differences from regular payrolls:

  • You can't create Payment Warehouse transactions in a Year End Correction payroll.

  • The payroll information appears in MasterTax RTS files but not in PTS files.

  • The Delivery functionality is not available for pay statements generated by Year End Correction payrolls.

Add Pay Statements to Year End Correction Payroll

After your payroll is created, you can add pay statements and make any needed edits (under Payroll > Process Payroll > Pay Statements).

  • You can create a Payroll Adjustment type of pay statement that functions the same as it does for regular payrolls.

  • You can also create a Year End Correction type of pay statement. This type of pay statement functions the same as a regular pay statement. You enter earnings and deductions that apply for that payroll.

  • You can also add a 3rd Party Sick type of payroll for situations where you need the different tax types that 3rd Party Sick includes.

Finalize the Year End Correction Payroll

After you complete all the needed parts of the Payroll Prep Process (as explained in the Payroll Prep Process topic), you are ready to finalize the payroll. The process to finalize a Year End Correction payroll is the same as for a regular payroll (as explained in the Finalize Payroll topic).

You can create and finalize multiple Year End Correction payrolls for the same year. If an employee has pay statements in multiple Year End Correction payrolls, the system sums the values into a single W2C.

Create W2C Forms

On the W2Cs page (under Payroll > Forms > W2C), you can do the following:

  • Add New W2C: Users can create W2C forms without impacting the original W2 in order to make employee name and/or social security corrections. Select the Add New W2C button, and a New Form W2C pop-up window displays where the user can choose the Year, Company EIN, and an employee(s).

  • View the corrected information: The page displays all employees in the payroll, along with the information that was corrected and the original information that required correcting.

    If an employee had no information that was corrected for a box on the form, their name still appears on the page, but the corrected and original information for that box will be blank.

  • Preview employee version of W2C: To preview an employee's W2C form, select the Preview Copy B,C,2 button next to that employee. This displays a Form Preview window in which you can view the form.

  • Preview employer version of W2C: To preview the employer's copy of an employee's W2C form, select the Preview Copy D,1 button next to that employee. This displays a Form Preview window in which you can view the form.

  • Download a PDF: In the Form Preview window, select Download PDF to download a PDF of the form that you can print or distribute as needed.

  • Download multiple PDFs: You can download multiple PDFs at the same time. Select the checkbox next to each employee whose PDF you want to download. Then select the Download button. In the Download Selected Forms box, the Download Type field allows you to select which copies you want to include in the download. You can select to include Copy D,1 - For Employer, Copy D - For Employer, Copy 1 - For Employer, or Copy B,C,2 - For Employee. Then, when you select Download PDF, the system generates one PDF in which all of the separate employee W-2c forms are included.

W2C for Employees

If employees receive a corrected W2, they have the option to view their W2C under My Info > My Pay > Forms > W2C and My HR > Forms > W2C.

If the Electronic Consent checkbox is enabled (under Global Setup > Company Setup > Payroll > Include/Exclude Format) an Electronic Consent button displays on the W2C page for the employee.

Create EF W2C Forms

If you plan to electronically file your W2C forms, you can create EF W2C forms on the EF Year End Files page (under Payroll > Quarter / Year End Process > EF Year End Files).

  1. On the EF Year End Files page, select Create EF Year End File button.
    The Create EF Year End File pop-up window appears.

  2. In the Form field, select W2C.

  3. In the Form Type field, select Federal.

  4. In the Year field, select the year for which you want to create the form. Currently, the system allows you to create a form for the current year or for several years in the past.

  5. Check or uncheck the Is Resubmission checkbox.

  6. Select Save.

The system generates the file and adds a new row for it on the page. To download the form, select the Download button in the form's row.