SOFTWARE SPECIFICATIONS AND EDITS FOR CORRECTING ANNUAL WAGE REPORTS JANUARY 2000 TABLE OF CONTENTS PAGE Nos. CHAPTER 1 - GENERAL REQUIREMENTS Purpose x Background x Electronic Access x Inquiries x Magnetic Media Filing x Criteria for Producing Paper Correction Reports x CHAPTER 2 - QUALITATIVE STEPS FOR EMPLOYERS Verifying and Correcting Social Security Numbers and Names x Initial Correction Reporting Activities x Preparing Correction Reports x Submitting Correction Reports CHAPTER 3 - STANDARDS, SPECIFICATIONS AND EDITS Introduction x Changes in Criteria From Preceding Years x Standards Specifications and Edits for Forms W-2c and W-3c x Part 1: Paper Form W-2c x Part 2: Paper Form W-3c x Where to File x CHAPTER 4 - REPORTING EXAMPLES FOR PREPARING PAPER FORMS W-2c, W-3c AND 941c Introduction x Inquiries x Background x Case Scenario x Exhibits - Payroll Register Data Tables x Appendix A: Telephone Numbers for the Social Security Administration's Regional Employer Services Liaison Officers x Appendix B: IRS/SSA Publications x CHAPTER 1 - GENERAL REQUIREMENTS Purpose This document prescribes standards, specifications and edits for software used to produce paper Form W-2c, Corrected Wage and Tax Statement and paper Form W-3c, Transmittal of Corrected Wage and Tax Statements. It provides employer human resource departments with guidance necessary to properly compile payroll data used to produce Forms W-2c/W-3c and furnishes programmers with requirements for properly producing the physical Forms W-2c/W-3c. It also provides paper reporting examples which illustrate (1) how to correct several types of common wage reporting errors and (2) the relationship between the data on Forms W-2c/W-3c and Internal Revenue Service (IRS) Form 941c, Supporting Statement to Correct Information. We encourage you to use software that complies with the standards, specifications and edits in this publication. By complying with these guidelines, you can help; (1) improve the accuracy of wage records used by the Social Security Administration (SSA) to determine eligibility for and amount of Social Security benefits and, (2) reduce resources used by the private sector and the Federal Government in administering the annual wage reporting process and later on in the SSA/IRS wage reconciliation process. PLEASE NOTE: The principle instructions for preparing paper Forms W-2c and W-3c are published by the IRS. See Appendix B. Employers are required to submit Copy A of Forms W-2, Wage and Tax Statement and W-3, Transmittal of Income and Tax Statements directly to SSA for crediting employee wage records. Employers should use Forms W-2c/W-3c to correct errors on Forms W-2/W-3, and file Copy A of the corrections with SSA (see Where to file). When you inform IRS of corrections to previously reported data on Form 941c, you must determine whether Copy A of Forms W-2c and W-3c should also be submitted to SSA. Electronic Access Internet subscribers can now read and print this publication directly from the Employer Information section of SSA Online @ www.ssa.gov. Inquiries Operational or technical questions should be directed to your respective Employer Services Liaison Officer listed in Appendix A. Comments or suggestions regarding this document should be forwarded to the: Social Security Administration Office of Financial Policy and Operations ATTN: AWR Software Standards P.O. Box 17195 Baltimore, MD 21297-1195 Tax questions or questions on tax law and regulations (including calculating amounts which are to be reported) must be addressed to the IRS Information Reporting Call Site at telephone number 1-304-263-8700 (Not a Toll Free Number). Magnetic Media Filing This document does not include magnetic media filing requirements. For copies of magnetic media filing instructions for W-2c/W-3c correction information, you should contact your respective Employer Services Liaison Officer listed in Appendix A. Criteria for Producing Paper Correction Reports Paper Forms W-2c and W-3c should meet the following criteria: 1. Wherever possible, entries should be systems generated from verified data to reduce the risks inherent with manual entry/reentry. 2. W-2c data for each employer should be segregated based on type of employment previously reported on the Form W-2 or W-2c being corrected (e.g., regular Social Security tax employment versus Medicare Qualified Government Employment (MQGE)) to permit (a) one employee W-2c submission for each type of employment and (b) associating each type of W-2c submission with one W-3c indicating the corresponding kind of payer. 3. Information should be entered in the appropriate items or blocks based on the types of corrections and the type of employment involved. 4. Repetitive information, such as the employer's name, address, and Employer Identification Number (EIN) should be checked for consistency when preparing the forms. 5. Where appropriate, only alphabetic, numeric or special character (i.e., parentheses) data should be entered. 6. Corrected tax withholding amounts should be consistent with the taxable wages and rates for Social Security and/or Hospital Insurance (Medicare) for the TY being corrected. 7. Amounts designated "As Previously Reported" in column A on Form W-2c should match to corresponding amounts reported on; a. ALL previously reported W-2s for the same TY, Social Security Number (SSN), EIN and employment type or, b. A SINGLE Form W-2 or W-2c for the same TY, SSN, EIN and employment type. 8. Do not produce W-3c entries before all necessary W-2c entries are prepared. W-3c entries should represent the combined total of all corresponding W-2c entries. 9. Use totals from column C of the W-3c (in conjunction with totals from previously filed Forms W-3) in matching and reconciling the annual sum of quarterly amounts reported on IRS Form 941 or comparable forms (including any Forms 941c) for the same TY and same EIN. Be alert for adjustments reported on Form 941c submissions to ascertain that they belong to the current year. 10. We encourage the use of magnetic media or electronically filing via the Online Wage Reporting Service (OWRS) to submit corrections to forms W-2. However, it is not required that corrections be reported on magnetic media. CHAPTER 2 QUALITATIVE STEPS FOR EMPLOYERS The following checklist contains a number of basic, qualitative steps you can take to help accurately report corrections to employee wages and protect their future benefits under the Social Security and Medicare programs. Verifying and Correcting Social Security Numbers and Names [ ] Encourage employees to verify basic information each year on their copies of Form W-2, particularly their name and SSN, and report any errors promptly to you as a basis for preparing a W-2c correction report. [ ] When correcting an employee name (due to marriage, divorce, etc.), remind employees to promptly report those name changes to SSA by contacting the local Social Security Office, calling 1-800-772-1213 or completing and submitting a new Form SS-5, Application for a Social Security Card to SSA. Initial Correction Reporting Activities [ ] If you detect differences between amounts reported to SSA and/or IRS for Social Security wages/tips and/or Medicare wages/tips, evaluate whether you should submit correction reports to SSA, IRS or both agencies. [ ] If incorrect amounts were reported only to SSA and you have not received a notification of correction from SSA, then corrections must be submitted to SSA. [ ] If incorrect amounts were reported to both SSA and IRS and you have not received a notification of correction, then you must submit corrections to both agencies. [ ] If SSA notified you that reported amounts have automatically been changed and: 1. You agree with the change(s), no correction(s) should be submitted to SSA. However, IRS correction forms may be necessary to ensure amounts reported to IRS are consistent with the automated change(s) made by SSA. 2. You disagree with the change(s), then contact SSA for instructions to resolve the matter. (Instructions for contacting SSA are printed on the notice you received.) NOTE: SSA only changes W-2 data when we find that Medicare or Social security wages were reported inconsistently or incorrectly. Preparing Correction Reports [ ] Ensure that your EIN reported on Forms W-2c and W-3c (and, if applicable, Form 941c) is the correct number issued by the IRS and that you reported the EIN consistently on all three forms. [ ] Use standard or approved Forms W-2c and W-3c. See IRS Publication No. 1223, Specifications for Private Printing of Substitute Forms W-2c and W-3c for instructions. [ ] Use a font that is not smaller than 12 characters per inch. [ ] Do not use a new Form W-2 or W-3 to correct a previous report submission - use a Form W-2c or W-3c instead. [ ] When correcting more than one Form W-2 issued to an employee: 1. Include data from ALL Forms W-2 for that employee (under the same EIN and type of employment for the TY being corrected) or, 2. If appropriate, you can submit a Form W-2c to correct a SINGLE Form W-2 or W-2c. [ ] Separate Forms W-2c/W-3c must be prepared for each year needing correction. [ ] Check that the Form W-3c line item entries balance to the sum of corresponding line item entries on the accompanying Forms W-2c. [ ] Do not "zero-fill" (e.g., 0.00) any W-2c line items which you are not correcting - leave these line items blank. [ ] Do not prepare Form W-2c to reallocate back-pay under a statute to the period in which it should have been paid (see Chapter 3 for more information on reporting these amounts). [ ] TYs Prior to 1991: Report corrections to Social Security (full-FICA) wages, taxes or tips in items 3, 4 and 7 respectively. [ ] TYs Later Than 1990: Report corrections to Medicare wages and tips and Medicare tax withheld in line items 5 and 6 respectively. [ ] MQGE: If you previously reported MQGE wages/tips and tax withheld (wages subject only to the 1.45% Medicare tax): 1. Report corrections to Medicare wages and tips and Medicare tax withheld in line items 5 and 6 respectively, regardless of the TY pertaining to the correction. 2. Report total Medicare wages and tips paid to an employee whenever you make a correction REDUCING the Social Security wages and/or Social Security tips for TYs later than 1990. Submitting Correction Reports [ ] Ensure that a Form W-3c accompanies each W-2c submission (unless you are only correcting employee names and/or SSNs). [ ] If you prepare your W-2cs on magnetic media and submit them to SSA, do not submit the paper version of this same information to SSA. [ ] Do not send Copy A of Form W-2c to SSA if you are only correcting state or local wage and tax information to IRS. [ ] All other Copies A of Forms W-2c and W-3c should be sent to SSA. CHAPTER 3 STANDARDS, SPECIFICATIONS AND EDITS Introduction This chapter provides standards, specifications and edits for preparing Copy A of paper Forms W-2c and W-3c for SSA. These criteria which follow are segregated to address two audiences; (1) employer human resource departments and (2) software developers who write software used to produce the physical paper wage and tax statement forms. The standards for human resource departments outline the employer and employee wage and tax data which employers should compile in preparing Copy A of paper Forms W-2c and W-3c. They are guidelines identifying what data to compile, what the data should represent and certain data characteristics that may identify suspect or incorrect data. Employers should adopt these guidelines to help ensure the accuracy of payroll data used in wage and tax statement reporting to minimize common reporting problems. The specifications and edits constitute guidelines for software developers who write programs used to produce the physical W-2c and W-3c paper forms. These guidelines prescribe which data to print in each Form W-2c/W-3c item (or box), data entry content requirements, data entry formats and edits which may identify suspect or incorrect entries. Software developers should incorporate these specifications and edits in their wage and tax statement software. Changes in Criteria from Preceding Years ALL REPORTERS: A. Reporting Corrections: If you filed more than one Form W-2 for an employee under the same EIN, there are two ways you can prepare a correction: 1. You can file a correction report which corrects a SINGLE Form W-2 or W-2c previously filed, OR; 2. You can reflect the wage totals of ALL the Forms W-2 that were submitted under the same 9-digit EIN for the same employee SSN, TY and type of employment. NOTE: If you have issued multiple Forms W-2 to an employee and you are issuing a Form W-2c to correct a single Form W-2, it is important to accurately report the "previously reported amount" in column A for Social Security and Medicare wages and tips. In these instances incorrect column A amounts will result in an incorrect employee earnings record. B. Reporting Back-pay Under a Statute: Back-pay under a statute is a payment by an employer pursuant to an award, determination, or agreement approved or sanctioned by a court or administrative agency charged with enforcing a Federal or State statute protecting an employee's right to employment or wages. IRS and SSA treat back-pay under a statute differently. For tax purposes, IRS considers back-pay under a statute as wages for the year in which the back-pay award is paid. In contrast, for earnings record maintenance purposes, SSA treats statutory back-pay as wages paid in the periods in which they should have been paid. Employers should report statutory back-pay award amounts as wages for the year received by the employee on Forms W-2 and W-3. If an employer did not include back-pay amounts on Forms W-2/W-3 for the year received, the employer should prepare and issue all copies of Forms W-2c/W-3c to report those additional wages for the year received by the employee. For SSA's earnings record maintenance purposes, when the year in which the back-pay is paid differs from the year in which the wages should have been paid, employers should also prepare a separate report (not a W-2c report) for SSA to reallocate the back-pay to the TY the wages should have been paid. Employers can obtain the back-pay reallocation reporting requirements from IRS Publication No. 957, Reporting Back Pay and Special Wage Payments to the Social Security Administration. STATE, LOCAL OR FEDERAL REPORTERS: State, local and Federal government employers should follow the instructions below when correcting just Social Security wages and/or tips when MQGE wages were also paid to the employee during the TY. TAX YEAR(S) PRIOR TO 1991 1. Corrections for full-FICA wages, tips or taxes: Enter these in the boxes for Social Security tax withheld, Social Security wages, and Social Security tips ONLY. 2. Corrections for MQGE wages: Enter these in the boxes for Medicare wages and tips, and Medicare tax withheld. TAX YEAR(S) 1991 AND LATER 1. Corrections to JUST Social Security wages and/or tips: MQGE Wages are NOT paid If you need to correct just Social Security wages and or tips, enter just this information in the boxes for Social Security Wages and/or Social Security tips. MQGE Wages are also paid If a State, local or Federal government employer needs to REDUCE the amount of previously reported Social Security wages and/or Social Security tips, for an employee who was also paid MQGE wages, the employer MUST complete the Medicare wages and tips box and indicate the TOTAL Medicare wages, for the same TY, including MQGE wages. This is necessary even if no change is needed to the total original Medicare/MQGE wages previously reported. In many correction situations, this will enable employers to prepare just one Form W-2c/W-3c. 2. Corrections to JUST Medicare Wages: If you are correcting just Medicare wages, enter just the Medicare wage information in the Medicare wages and tips box. You need not show any Social Security wages/tips if these wages were correct on the previously filed report(s). Standards, Specifications and Edits for Forms W-2c and W-3c The following standards, specifications and edits are designated as either required or optional. Items designated as required on Copy A of Forms W-2c and W-3c constitute data required to be submitted to SSA for either (1) use by SSA for programmatic purposes and/or (2) accumulation and transmission to IRS for tax processing and enforcement purposes. Items designated as optional constitute other data not required to be submitted to SSA on Copy A but which may be required for tax reporting purposes on other copies of Forms W-2c. PLEASE NOTE: The principle instructions for preparing Forms W-2c and W-3c are published by the IRS. See Appendix B. PART 1: PAPER FORM W-2C BOX: a. REQUIRED/OPTIONAL: R NAME/DESCRIPTION: Year/Form Corrected STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: This box requires a two part entry; a. Part one must represent the four digits of the tax year to which the W-2c pertains. TYs earlier than 1978 are invalid. b. Part two must identify the form corrected as appropriate: W-2AS, W-2CM, W-2GU, or W-2VI. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Part one: a. Must be four position numeric. b. Can contain only one four-digit tax year indicator. c. Must be greater than 1977. Part two: a. Must be either blank or contain one of the following entries: AS, CM, GU, or VI. BOX: REQUIRED/OPTIONAL: R if applicable NAME/DESCRIPTION: Void STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: The data required is an "X" when an error has been made to one of the forms W-2c. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Must be either blank or an "X". BOX: b. REQUIRED/OPTIONAL: R NAME/DESCRIPTION: Employee's Name Address and ZIP Code. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: a. The data prepared for entry should be the same employee name and address as originally printed on the Form W-2 (if correct) or the corrected name and address. b. Mark the "Corrected Name" checkbox if you are correcting the name and also complete box l, (Employee's name (as incorrectly shown on previous form)). c. Ensure that name order is consistent within each employer's report or submission. Expected order is: First, Middle Initial and Last name (e.g., Brian A Jones). d. Care should be taken when providing compound surnames and names of various ethnic backgrounds. Additionally, it is desirable to link compound surnames with hyphens. For example, the Hispanic names: (1) Maria Rodriguez-de-Perez properly displays a first name (Maria), no middle initial, and a compound surname (Rodriguez-de-Perez); (2) Maria Elena Rodriguez-de-Perez properly displays a first name (Maria) a middle initial of E (for the middle name Elena) and a compound surname (Rodriguez-de-Perez). (3) Diego Garcia-y-Vega properly displays a first name (Diego), no middle name, and a compound surname of (Garcia-y-Vega). e. The data should exclude titles in prefixes and/or suffixes. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Name should be entered in order of: First, Middle Initial and Last. b. Address and ZIP Code are Free Form. c. "Corrected Name" checkbox must be either blank or contain an "X". BOX: c. REQUIRED/OPTIONAL: R NAME/DESCRIPTION: Employer's Name Address and ZIP Code STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: a. The data prepared for entry should be the employer's name, address and ZIP code. These should be the same as shown on your Forms 941, 943, CT-1, or Schedule H. Note: The IRS will not use the Form W-2c to update your address of record. To change your address, file IRS Form 8822, Change of Address. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Free Form BOX: d REQUIRED/OPTIONAL: R NAME/DESCRIPTION: Employee's Correct SSN. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Enter the employee's SSN, in an 11 position format; 9 numerics with hyphens in positions 4 and 7 (e.g., 000-00-0000). The following are impossible SSN's; all ones (111-11-1111) or all threes (333-33-3333), (123-45-6789) or any SSN having 000, or 729 through 999 as the first three left-most digits. NOTE: A list, showing the first 3 digits of all SSNs assigned is available on the SSA Online Wage Reporting System (OWRS) or the IRS electronic bulletin Board System (BBS) via personal computer and modem. You can access the SSA-OWRS by dialing (410) 9656-8450, or the IRS-BBS by dialing (304) 264-7070. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be 11 positions. b. Hyphens only in positions 4 and 7. c. Numerics in all other positions. d. Cannot be all zeros, all ones, all threes or 123-45-6789. e. The first three positions for any SSN cannot be 000 or 729 through 999. BOX: e. REQUIRED/OPTIONAL: O NAME/DESCRIPTION: Employer's SSA number. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Not required by SSA. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Not required by SSA. BOX: f. REQUIRED/OPTIONAL: R NAME/DESCRIPTION: Employer's Federal EIN. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: a. Designate the correct EIN. b. Entry should be shown as 10 positions, nine numerics with one hyphen in position 3 (e.g., 00-0000000). c. The first two left-most positions cannot be 00, 07, 08, 09, 10, 17, 18, 19, 20, 26, 27, 28, 29, 30, 40, 49, 50, 60, 69, 70, 78, 79, 80, 89, 90. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be 10 positions. b. Hyphen only in position 3. c. Positions 1, 2 and 4 through 10 must be numeric. d. The first two left-most positions cannot be: 00, 07, 08, 09, 10, 17, 18, 19, 20, 26, 27, 28, 29, 30, 40, 49, 50, 60, 69, 70, 78, 79, 80, 89, 90. BOX: g. REQUIRED/OPTIONAL: O NAME/DESCRIPTION: Employer's State I.D. Number. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Not required by SSA. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Not required by SSA. BOX: h. REQUIRED/OPTIONAL: R if applicable NAME/DESCRIPTION: Previously Reported. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Complete only if correcting previously reported incorrect data. Designate the appropriate boxes as they were previously (incorrectly) entered on the form W-2 for; (1) Statutory Employee. (2) Deceased. (3) Pension Plan. (4) Legal Representative. (5) Deferred Compensation. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Must contain an "X" or blank. BOX: i. REQUIRED/OPTIONAL: R if applicable NAME/DESCRIPTION: Corrected STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Complete only when making a correction to previously reported data. Designate the appropriate item i box(es) (listed in item h above) to reflect corrections or additions to previously reported W-2 data. Any box checked in error on the original Form W-2 should be left blank. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Must contain an "X" or blank. BOX: j. REQUIRED/OPTIONAL: O NAME/DESCRIPTION: Employer's Use. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Not Required by SSA. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Not Required by SSA. BOX: k. REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Employee's Incorrect SSN. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: a. Complete only if correcting a previously reported incorrect employee SSN; otherwise leave blank. b. Designate the incorrect employee SSN exactly as previously shown on the Form W-2. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Cannot match the entry in item d. BOX: l. REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Employee's Name (As Incorrectly Shown on Previous Form). STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: a. Complete only if correcting previously reported incorrect employee name; otherwise leave blank. b. Designate the incorrect employee name exactly as previously reported on the W-2 form. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Cannot match the employee's name in the item entitled "Employee's name, address and ZIP code"; box b. BOX: 1 REQUIRED/OPTIONAL: R-If applicable NAME/DESCRIPTION: Wages, Tips, Other Comp. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Complete only if correcting previously reported incorrect wages, tips or other compensation; otherwise leave blank. a. Data for column A should be; 1. The total incorrect amount previously reported on all Forms W-2 issued for an individual for the same EIN, tax year, and type of employment, or 2. The incorrect amount previously reported on a single W-2 or, 3. An erroneous amount previously reported in column B on a form W-2c report. b. Data for column B should be the correct amount, corresponding to the entry in column A. The entry should be; 1. The total correct amount of all Forms W-2 for an individual under the same EIN, tax year, and type of employment, or 2. The correct amount for a single W-2 or, 3. The correct amount for an erroneous amount previously reported in column B on a form W-2c report. c. Data for column C should be derived by subtracting the total incorrect amount previously reported (column A) from the total correct amount (column B). Show any negative amount in column C in parentheses. d. Enter the digit "0" in column A or B when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Amounts in column C may be in parentheses, if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus column A. e. When the amount entered in column A is greater than the amount in column B, the amount in column C, (i.e., a decrease) must be shown in parentheses. BOX: 2 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Federal Income Tax Withheld STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Complete only if correcting previously reported incorrect Federal income tax withheld; otherwise leave blank. a. Data for column A should be; 1. Previously reported on all W-2 forms issued for an individual for the same EIN, tax year, and type of employment or 2. The incorrect amount previously reported on a single W-2 or, 3. An erroneous amount previously reported in column B on a form W-2c report. b. Data for column B should be the correct amount, corresponding to the entry in column A. The entry should be; 1. The total correct amount of all W-2 forms for an individual under the same EIN, tax year, and type of employment, or 2. The correct amount for a single W-2 or 3. The correct amount for an erroneous amount previously reported in column B on a form W-2c report. c. Data for column C should be derived by subtracting the total incorrect amount previously reported (column A) from the total correct amount (column B). Show any negative amount in column C in parentheses. d. Enter the digit "0" in column A or B when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Amounts in column C may be in parentheses, if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus column A. e. When the amount entered in column A is greater than the amount in column B, the amount in column C, (i.e., a decrease) must be shown in parentheses. BOX: 3 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Social Security Wages STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Complete only if correcting previously reported incorrect Social Security wages; otherwise leave blank. a. Data for column A should be; 1. The total incorrect amount previously reported on all W-2 forms issued for an individual for the same EIN, tax year, and type of employment, or 2. The incorrect amount previously reported on a single W-2 or 3. An erroneous amount previously reported in column B on a form W-2c report. b. Data for column B should be the correct amount, corresponding to the entry in column A. The entry should be; 1. The total correct amount of all W-2 forms for an individual under the same EIN, tax year, and type of employment, or 2. The correct amount for a single W-2 or, 3. The correct amount for an erroneous amount previously reported in column B on a form W-2c report. 4. The entry in column B cannot be greater than the maximum Social Security taxable wage base for the year being corrected. c. Designate the digit "0" in column B when the type of employment is either MQGE or RRTA. d. Data for column C should be derived by subtracting the total incorrect amount previously reported (column A) from the total correct amount (column B). Show any negative amount in column C in parentheses. e. Enter the digit "0" in column A or B when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Amounts in column C may be in parentheses, if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus Column A. e. When the amount entered in column A is greater than the amount in column B, the amount in column C, (i.e., a decrease) must be shown in parentheses. f. When the type of employment is either MQGE or RRTA the entry in column B cannot be greater than zero. BOX: 4 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Social Security Tax Withheld. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Complete only if correcting previously reported incorrect Social Security tax withheld; otherwise leave blank. a. Data for column A should be; 1. The total incorrect amount previously reported on all W-2 forms issued for an individual for the same EIN, tax year, and type of employment, or 2. The incorrect amount previously reported on a single W-2 or, 3. An erroneous amount previously reported in column B on a form W-2c report. b. Data for column B should be the correct amount, corresponding to the entry in column A. The entry should be; 1. The total correct amount of all W-2 forms for an individual under the same EIN, tax year, and type of employment, or 2. The correct amount for a single W-2 or, 3. The correct amount for an erroneous amount previously reported in column B on a form W-2c report. The data for column B cannot be less than the product of (1) the Social Security tax rate in effect for the year being corrected and (2) the corresponding correct amount of Social Security wages and Social Security tips combined. c. Data for column C should be derived by subtracting the total incorrect amount previously reported (column A) from the total correct amount (column B). Show any negative amount in column C in parentheses. d. Designate the digit "0" in column B when the type of employment is either MQGE or RRTA. e. Enter the digit "0" in column A or B when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Amounts in column C may be in parentheses, if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus Column A. e. When the amount entered in column A is greater than the amount in column B, the amount in column C, (i.e., a decrease) must be shown in parentheses. f. When the type of employment is either MQGE or RRTA, the entry in column B cannot be greater than zero. BOX: 5 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Medicare Wages and Tips. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Complete when correcting previously reported incorrect Medicare wages and tips or when the criteria in 5f (below) is met; otherwise leave blank. a. Data for column A should be; 1. The total incorrect amount previously reported on all W-2 forms issued for an individual for the same EIN, tax year, and type of employment, or 2. The incorrect amount previously reported on a single W-2 or, 3. An erroneous amount previously reported in column B on a form W-2c report. b. Data for column B should be the correct amount, corresponding to the entry in column A. The entry should be; 1. The total correct amount of all W-2 forms for an individual under the same EIN, tax year, and type of employment, or 2. The correct amount for a single W-2 or, 3. The correct amount for an erroneous amount previously reported in column B on a form W-2c report, or 4. Zero when the type of employment is RRTA. c. Data for column C should be derived by subtracting the total incorrect amount previously reported (column A) from the total correct amount (column B). Show any negative amount in column C in parentheses. d. Enter the digit "0" in column A or B when the money amount in that column should be zero. e. If (1) the 4-digit TY in item a. is greater than 1990 and (2) entries exist in line items 3 and/or 7 which REDUCE the Social Security Wages and/or Tips amount and (3) the employee received MQGE wages during the TY being corrected, entries must exist in line item 5, Columns A, B and C. Columns A and B must reflect the total Medicare wages paid to the employee during the TY. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Amounts in columns C may be in parentheses if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus Column A. e. When the amount entered in column A is greater than the amount in column B, the amount in column C, (i.e., a decrease) must be shown in parentheses. f. Column B cannot be greater than zero when the type of employment is RRTA. BOX: 6 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Medicare Tax Withheld. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Complete only if correcting previously reported incorrect Medicare tax withheld; otherwise leave blank. a. Data for column A should be; 1. The total incorrect amount previously reported on all W-2 forms issued for an individual for the same EIN, tax year, and type of employment, or 2. The incorrect amount previously reported on a single W-2 or, 3. An erroneous amount previously reported in column B on a form W-2c report. b. Data for column B should be the correct amount, corresponding to the entry in column A. The entry should be; 1. The total correct amount of all W-2 forms for an individual under the same EIN, tax year, and type of employment, or 2. The correct amount for a single W-2 or, 3. The correct amount for an erroneous amount previously reported in column B on a form W-2c report or, 4. Zero when the type of employment is RRTA. The data for column B cannot be less than the product of (1) the Medicare tax rate in effect for the year being corrected and (2) the correct amount of Medicare wages and tips combined for the year being corrected. c. Data for column C should be derived by subtracting the total incorrect amount previously reported (column A) from the total correct amount (column B). Show any negative amount in column C in parentheses. d. Enter the digit "0" in column A or B when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Amounts in columns C may be in parentheses, if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus Column A. e. When the amount entered in column A is greater than the amount in column B, the amount in column C, (i.e., a decrease) must be shown in parentheses. f. The entry in column B cannot be greater than zero when the type of employment involved is RRTA. BOX: 7 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Social Security Tips. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Complete only if correcting previously reported incorrect Social Security tips; otherwise leave blank. a. Data for column A should be; 1. The total incorrect amount previously reported on all W-2 forms issued for an individual for the same EIN, tax year, and type of employment, or 2. The incorrect amount previously reported on a single W-2 or, 3. An erroneous amount previously reported in column B on a form W-2c report. b. Data for column B should be the correct amount, corresponding to the entry in column A. The entry should be; 1. The total correct amount of all W-2 forms for an individual under the same EIN, tax year, and type of employment, or 2. The correct amount for a single W-2 or, 3. The correct amount for an erroneous amount previously reported in column B on a form W-2c report or, 4. Zero when the type of employment is MQGE or RRTA. The data for column B must be the lesser of the following two amounts: (1) the correct amount of Social Security tips or (2) the correct amount of Social Security wages subtracted from the maximum Social Security taxable wage base for the year being corrected. c. Data for column C should be derived by subtracting the total incorrect amount previously reported (column A) from the total correct amount (column B). Show any negative amount in column C in parentheses. d. Enter the digit "0" in column A or B when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Amounts in columns C may be in parentheses if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus Column A. e. When the amount entered in column A is greater than the amount in column B, the amount in column C, (i.e., a decrease) must be shown in parentheses. f. If the type of employment is MQGE or RRTA the entry in column B cannot be greater than zero. BOX: 8 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Allocated Tips. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Complete only if correcting previously reported incorrect allocated tips; otherwise leave blank. a. Data for column A should be; 1. The total incorrect amount previously reported on all W-2 forms issued for an individual for the same EIN, tax year, and type of employment, or 2. The incorrect amount previously reported on a single W-2 or, 3. An erroneous amount previously reported in column B on a form W-2c report. b. Data for column B should be the correct amount, corresponding to the entry in column A. The entry should be; 1. The total correct amount of all W-2 forms for an individual under the same EIN, tax year, and type of employment, or 2. The correct amount for a single W-2 or, 3. The correct amount for an erroneous amount previously reported in column B on a form W-2c report. c. Data for column C should be derived by subtracting the total incorrect amount previously reported (column A) from the total correct amount (column B). Show any negative amount in column C in parentheses. d. Enter the digit "0" in column A or B when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Amounts in columns C may be in parentheses if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus Column A. e. When the amount entered in column A is greater than the amount in column B, the amount in column C, (i.e., a decrease) must be shown in parentheses. BOX: REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Blank Boxes. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Complete these lines only if correcting one of the following; otherwise leave blank: (1) Advanced earned income credit. (2) Deferred compensation (including nonqualified plan and section 457 distributions). (3) Dependent care benefits. (4) Cost of group-term life insurance coverage over $50,000. (5) Gross annuity and taxable annuity. (6) Benefits included in box 1. (7) Uncollected Social Security and/or Medicare taxes on tips. (8) Sick pay not includable as income. (9) Employee business expenses, and any other item you reported on the employees original Form W-2. a. Identify correction type and label as such for the item column. b. For correcting distribution codes, data for column A should be the previously reported (incorrect) code and data for column B should be the correct code. c. For money amount entries, the data for column A should be; 1. The total incorrect amount previously reported on all W-2 forms issued for an individual for the same EIN, tax year, and type of employment, or 2. The incorrect amount previously reported on a single W-2 or, 3. An erroneous amount previously reported in column B on a form W-2c report. d. For money amount entries, data for column B should be the correct amount, corresponding to the entry in column A. The entry should be; 1. The total correct amount of all W-2 forms for an individual under the same EIN, tax year, and type of employment, or 2. The correct amount for a single W-2 or, 3. The correct amount for an erroneous amount previously reported in column B on a form W-2c report. e. For money amount entries, data for column C should be derived by subtracting the total incorrect amount previously reported (column A) from the total correct amount (column B). Show any negative amount in column C in parentheses. f. Enter the digit "0" in column A or B when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Can be a one position distribution code, a money amount, a zero or blank. If the entry is a one position distribution code; a. It must be; 1, 2, 3, 4, 7, 8, 9, P, B, D, S, N, T or W. b. Column C must be blank. If the entry is a money amount, the following rules apply; a. Must be dollars and cents, (numerics and decimal point only), or zero. Amounts in column C may be in parentheses if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus Column A. e. When the amount entered in column A is greater than the amount in column B, the amount in column C, (i.e., a decrease) must be shown in parentheses. f. When the 4 digit TY in item a is greater than 1990, there cannot be a money amount entry for gross and taxable annuity data. BOX: 17-21 REQUIRED/OPTIONAL: O NAME/DESCRIPTION: State or Local Income Tax Information. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Not Required by SSA. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Not Required by SSA. PART 2: PAPER FORM W-3C BOX: a. REQUIRED/OPTIONAL: R NAME/DESCRIPTION: Year Being Corrected. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: This box requires a two part entry; a. Part one must represent the four digits of the tax year of the forms you are correcting. b. Part two must identify the form corrected as appropriate: W-2, W-2AS, W-2CM, W-2GU, or W-2VI, W-3,or W-3SS. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Part one; Must be 4 position numeric, (1) not greater than the current TY and (2) not less than "1978". b. Part two; Must be 2, 2AS, 2CM, 2GU, 2VI, 3 or 3SS. BOX: b. REQUIRED/OPTIONAL: R NAME/DESCRIPTION: Employer's Name Address and ZIP Code. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Data should be the same as shown on the Form 941, 943, CT-1 or Schedule H. Note: The IRS will not use the Form W-3c to update your address of record. If you wish to change your address, you must file IRS Form 8822, Change of Address. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Free-form. BOX: c. REQUIRED/OPTIONAL: R NAME/DESCRIPTION: Number of Forms W-2c. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: The entry for this box is the number of W-2cs being summarized (not including "Void" forms) or a zero if a correction is being made to a previously filed Form W-3 or W-3SS. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Must be numeric. BOX: d. REQUIRED/OPTIONAL: O NAME/DESCRIPTION: Establishment Number. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Employers may use this item to identify separate establishments within the business. Data should be created as a 4-position entry. a. Data can be either alpha or numeric (SSA prefers numeric entries only). b. Data for employers having unit designations with less than 4 positions should be right justified with leading zeros. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Must be either; a. Four positions, (alpha or numeric) or b. Blank. BOX: e. REQUIRED/OPTIONAL: R NAME/DESCRIPTION: Employer's Federal EIN. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: a. Data should consist of the EIN used in processing of W-2c forms (should be the same EIN used in W-2c item f). b. Data should consist of 10 positions, all numerics and one hyphen in position 3 (e.g., 00-0000000). c. The first two left-most positions cannot be 00, 07, 08, 09, 10, 17, 18, 19, 20, 26, 27, 28, 29, 30, 40, 49, 50, 60, 69, 70, 78, 79, 80, 89, 90. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be 10 positions. b. Hyphen only in position 3. c. Positions 1, 2 and 4 through 10 must be numeric. d. The first two left-most positions cannot be: 00, 07, 08, 09, 10, 17, 18, 19, 20, 26, 27, 28, 29, 30, 40, 49, 50, 60, 69, 70, 78, 79, 80, 89, 90. e. Cannot match the entry in item number i. BOX: f. REQUIRED/OPTIONAL: R NAME/DESCRIPTION: Kind of Payer. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Enter an "X" in the appropriate Box. Generate separate W-3cs for each payer type and mark only one Box on each W-3c form. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Only one box can be marked. b. When the Box "Medicare Gov't Emp." is marked; (1) Item "a" cannot be less than "1983" if the employer is a Federal entity, and, (2) Item "a" cannot be less than "1986" if the employer is a state or local entity. c. When the "Sec. 218" Box is marked, (1) the item a entry cannot be greater than "1986", and (2) Box h must also contain an entry. NOTE: See IRS Instructions contained on the W-3c form (Your Copy) and Form W-2c for more information on Form W-3c, Box f. requirements. Please contact IRS for copies of its instructions and additional guidance (see appendix B); do not contact SSA. BOX: g. REQUIRED/OPTIONAL: O NAME/DESCRIPTION: Employer's State I.D. Number. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Not required by SSA. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: BOX: h. REQUIRED/OPTIONAL: O NAME/DESCRIPTION: Employer's SSA Number. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Not required by SSA. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Not Required by SSA. BOX: i. REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Employer's Incorrect Federal EIN. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: a. Provide data only if correcting a previously reported incorrect employer EIN; otherwise leave blank. b. Insert the incorrect employer EIN exactly as previously reported. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Cannot match the EIN in item e. b. If item i contains an entry, item e must contain an entry. BOX: j. REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Incorrect Establishment Number. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Provide data only if correcting a previously reported incorrect employer establishment number, otherwise leave blank. Enter the incorrect employer establishment number exactly as previously reported on the W-3 form. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Cannot match the number in item d. b. If item j contains an entry, item d must contain an entry. BOX: k. REQUIRED/OPTIONAL: O NAME/DESCRIPTION: Employer's Incorrect SSA Number. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Not required by SSA. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Not required by SSA. BOX: 1 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Wages, Tips and Other Compensation. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Provide data only if summarizing W-2cs with previously reported incorrect wages, tips and other compensation; otherwise leave blank. a. Separately add the amounts in each form W-2c column and place calculated total amounts in the corresponding W-3c columns A, B and C. b. In column C, show any negative amount in parentheses. c. Data must be dollars and cents, (numerics and decimal point only), or zero. d. Do not enter negative amounts in column B. e. Enter the digit "0" in column A , B or C when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Dollars and cents in columns A and C may be in parentheses, if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus column A. e. When the amount entered in column A or C is a negative amount (decrease) it must be shown in parentheses. f. Must contain a zero if any of the money amounts in columns A, B or C should be zero. BOX: 2 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Federal Income Tax Withheld. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Provide data only if summarizing W-2cs with previously reported incorrect Federal income tax withheld; otherwise leave blank. a. Separately add the amounts in each form W-2c column and place calculated total amounts in the corresponding W-3c columns A, B and C. b. In column C, show any negative amount in parentheses. c. Data must be dollars and cents, (numerics and decimal point only), or a zero. d. Do not enter negative amounts in column B. e. Enter the digit "0" in column A , B or C when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only, blank or zero. Dollars and cents in columns A and C may be in parentheses, if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus column A. e. When the amount entered in column A or C is a negative amount (decrease) it must be shown in parentheses. f. Must contain a zero if any of the money amounts in columns A, B or C should be zero. BOX: 3 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Social Security Wages. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Provide data only if summarizing W-2cs with previously reported incorrect Social Security wages; otherwise leave blank. a. Separately add the amounts in each form W-2c column and place calculated total amounts in the corresponding W-3c columns A, B and C. b. In column C, show any negative amount in parentheses. c. Data must be dollars and cents, (numerics and decimal point only), or zero. d. Do not enter negative amounts in column B. e. Enter the digit "0" in column A , B or C when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Dollars and cents in columns A and C may be in parentheses, if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus column A. e. When the amount entered in column A or C is a negative amount (decrease) it must be shown in parentheses. f. Must contain a zero if any of the money amounts in columns A, B or C should be zero. g. Column B cannot contain an entry greater than zero when either the "Medicare Gov't Emp." or "CT-1" Box is marked with an "X" indicator. BOX: 4 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Social Security Tax Withheld STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Provide data only if summarizing W-2cs with previously reported incorrect Social Security tax withheld; otherwise leave blank. a. Separately add the amounts in each form W-2c column and place calculated total amounts in the corresponding W-3c columns A, B and C. b. In column C, show any negative amount in parentheses. c. Data must be dollars and cents, (numerics and decimal point only), or zero. d. Do not enter negative amounts in column B. e. Enter the digit "0" in column A , B or C when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Dollars and cents in columns A and C may be in parentheses, if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus column A. e. When the amount entered in column A or C is a negative amount (decrease) it must be shown in parentheses. f. Must contain a zero if any of the money amounts in columns A, B or C should be zero. g. Column B cannot contain an entry greater than zero when either the "Medicare Gov't Emp." or "CT-1" Box is marked with an "X" indicator. BOX: 5 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Medicare Wages and Tips. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Provide data to summarize W-2cs with Medicare wages and tips; otherwise leave blank. a. Separately add the amounts in each form W-2c column and place calculated total amounts in the corresponding W-3c columns A, B and C. b. In column C, show any negative amount in parentheses. c. Data must be dollars and cents, (numerics and decimal point only), or zero. d. Do not enter negative amounts in column B. e. Enter the digit "0" in column A , B or C when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Dollars and cents in columns A and C may be in parentheses, if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus column A. e. When the amount entered in column A or C is a negative, amount (decrease) it must be shown in parentheses. f. Must contain a zero if any of the money amounts in columns A, B or C should be zero. g. Column B cannot contain an entry greater than zero when the "CT-1" Box is marked with an "X" indicator. BOX: 6 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Medicare Tax Withheld. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Provide data only if summarizing W-2cs with previously reported incorrect Medicare tax withheld; otherwise leave blank. a. Separately add the amounts in each form W-2c column and place calculated total amounts in the corresponding W-3c columns A, B and C. b. In column C, show any negative amount in parentheses. c. Data must be dollars and cents, (numerics and decimal point only), or zero. d. Do not enter negative amounts in column B. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Dollars and cents in columns A and C may be in parentheses, if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus column A. e. When the amount entered in column A or C is a negative amount (decrease) it must be shown in parentheses. f. Must contain a zero if any of the money amounts in columns A, B or C should be zero. g. Column B cannot contain a money amount greater than zero when the "CT-1" Box is marked with an "X" indicator. BOX: 7 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Social Security Tips. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Provide data only if summarizing W-2cs with previously reported incorrect Social Security tips; otherwise leave blank. a. Separately add the amounts in each form W-2c column and place calculated total amounts in the corresponding W-3c columns A, B and C. b. In column C, show any negative amount in parentheses. c. Data must be dollars and cents, (numerics and decimal point only), or zero. d. Do not enter negative amounts in column B. e. Enter the digit "0" in column A , B or C when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Dollars and cents in columns A and C may be in parentheses, if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus column A. e. When the amount entered in column A or C is a negative amount (decrease) it must be shown in parentheses. f. Must contain a zero if any of the money amounts in columns A, B or C should be zero. g. Column B cannot contain an entry greater than zero when either the "Medicare Gov't Emp." or "CT-1" Box is marked with an "X" indicator. BOX: 8 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Allocated Tips. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Provide data only if summarizing W-2cs with previously reported incorrect allocated tips; otherwise leave blank. a. Separately add the amounts in each form W-2c column and place calculated total amounts in the corresponding W-3c columns A, B and C. b. In column C, show any negative amount in parentheses. c. Data must be dollars and cents, (numerics and decimal point only), or zero. d. Do not enter negative amounts in column B. e. Enter the digit "0" in column A , B or C when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Dollars and cents in columns A and C may be in parentheses, if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus column A. e. When the amount entered in column A or C is a negative amount (decrease) it must be shown in parentheses. f. Must contain a zero if any of the money amounts in columns A, B or C should be zero. BOX: REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Provide data only if summarizing W-2cs with previously reported incorrect items related to one of the following, otherwise leave blank: (1) Advanced earned income credit. (2) Deferred compensation (including nonqualified plan and section 457 distributions). (3) Dependent care benefits. (4) Cost of group-term life insurance coverage over $50,000. (5) Gross annuity and taxable annuity. a. Identify the correction type to be summarized and label as such in the W-3c item column. b. For each correction type indicated in the accompanying W-2c item column, separately add the money amounts in each W-2c form money column and place calculated total amounts in the corresponding W-3c columns A, B and C. c. In column C, show any negative amount in parentheses. d. Must be shown as dollars and cents, (numerics and decimal point only), or zero. e. Do not enter negative amounts in column B. f. Enter the digit "0" in column A , B or C when the money amount in that column should be zero. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: a. Must be dollars and cents, (numerics and decimal point only), blank or zero. Dollars and cents in columns A and C may be in parentheses, if negative. b. Decimal point must be shown even when the entry is even dollars. c. Column B cannot be a negative amount. d. Column C must equal column B minus column A. e. When the amount entered in column A or C is a negative amount (decrease) it must be shown in parentheses. f. Must contain a zero if any of the money amounts in columns A, B or C should be zero. g. When the 2 digit item a entry is greater than "90", W-3c entries cannot exist for money amounts representing gross and taxable annuity data. BOX: 17-21 REQUIRED/OPTIONAL: O NAME/DESCRIPTION: State or Local Income Tax Information. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: Not required by SSA. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Not Required by SSA. BOX: 22 REQUIRED/OPTIONAL: R-If Applicable NAME/DESCRIPTION: Explain Decreases. STANDARDS FOR HUMAN RESOURCE DEPARTMENTS: a. Identify negative money amounts appearing in parentheses for column C. b. Either: (1) Prompt user to complete this block explaining decreases in wages or taxable amounts reported when negative money amounts (i.e., entries in parentheses) exist in column C, or (2) Automatically generate a narrative explanation for each negative money amount in column C. c. Either: (1) Prompt preparer to indicate "YES" or "NO" as to whether an employment tax return adjustment was filed and, if "YES", the date the return was filed, or (2) Automatically place an "X" precisely in the appropriate Box indicating "YES" or "NO" as to whether an employment tax return adjustment was filed and, if "YES", automatically enter the date the return was filed. SPECIFICATIONS AND EDITS FOR SOFTWARE DEVELOPERS: Free-form. Where to File SSA now processes all Forms W-2c and W-3c at the following addresses: United States Postal Service Social Security Administration Data Operations Center P. O. Box 3333 Wilkes-Barre, PA 18767-3333 Other Carriers ( e.g. Fed Ex., UPS) Social Security Administration Data Operations Center Attn: W-2c Process 1150 E. Mountain Drive Wilkes-Barre, PA 18702-7997 CHAPTER 4 REPORTING EXAMPLES FOR PREPARING PAPER FORMS W-2c, W-3c and 941c Introduction The purpose of this chapter is to provide examples of properly repared paper correction reports to help employers understand and comply with the guidelines in this document. The correction reports (Forms W-2c, W-3c and 941c) are used to correct errors on reports previously filed. Submitting properly prepared correction reports is important because it helps protect the public's investment in the Social Security trust funds, including entitlement to benefits upon retirement, disability or death, and the Medicare program. It can also help prevent wage reconciliation discrepancies between SSA and IRS records. Included are examples of properly prepared correction reports along with incorrect W-2 reports. The reporting examples illustrated in this chapter cover: Form W-2c, Corrected Wage and Tax Statement; Form W-3c, Transmittal of Corrected Wage and Tax Statements; and Form 941c, Supporting Statement to Correct Information. We are not able to provide these examples in this file format. Hard copy of this document can be obtained by writing to the address in chapter 1. The entire document can also be accesed on the internet at www.ssa.gov. Inquiries Questions concerning the examples and information in this chapter should be directed to your respective regional Employer Services Liaison Officers listed in Appendix A (page 69). However, tax questions or questions on tax law and regulations (including Form 941c) must be addressed to the IRS Information Reporting Call Site at telephone number 1-304-263-8700. Suggestions for improving this chapter should be directed in writing to the address in Chapter 1. APPENDIX A: TELEPHONE NUMBERS FOR THE SOCIAL SECURITY ADMINISTRATION'S REGIONAL EMPLOYER SERVICES LIAISON OFFICERS NOTE: THESE ARE NOT TOLL-FREE NUMBERS Social Security personnel at these telephone numbers can help callers with questions about how to submit W-2s on magnetic media. Refer to Internal Revenue Service (IRS) Publication 393, "Federal Employment Tax Forms" for instructions on filing paper W-2s/W-3s. Employers, payroll services or an "agent" filing W-2s for employers may telephone the IRS Martinsburg Computing Center call site at (304) 263-8700 with employment tax questions. Calls from: Telephone: Alabama (334) 223-7013 (Montgomery)* Alaska (206) 615-2125 (Seattle) American Samoa (510) 970-8247 (San Francisco) Arizona (510) 970-8247 (San Francisco) Arkansas (501) 324-5466 (Little Rock)** California (510) 970-8247 (San Francisco) Colorado (303) 844-2364 (Denver) Connecticut (617) 565-2895 (Boston) Delaware (215) 597-4632 (Philadelphia) Dist. of Columbia (215) 597-4632 (Philadelphia) Florida-North (850) 942-8975 (Tallahassee)* Florida-South (305) 672-4517 (Miami Beach)* Georgia North (706) 282-7327 Ext. 201 (Toccoa)* Georgia South (912) 353-7592 Ext. 207 (Savannah)* Guam (510) 970-8247 (San Francisco) Hawaii (510) 970-8247 (San Francisco) Idaho (206) 615-2125 (Seattle) Illinois (312) 575-4244 (Chicago) Indiana (312) 575-4244 (Chicago) Iowa (816) 936-5649 (Kansas City) Kansas (816) 936-5649 (Kansas City) Kentucky (504) 389-0426 (Baton Rouge)** Maine (617) 565-2895 (Boston) Maryland (215) 597-4632 (Philadelphia) Massachusetts (617) 565-2895 (Boston) Michigan (312) 575-4244 (Chicago) Minnesota (312) 575-4244 (Chicago) Mississippi (601) 693-4859 (Meridian)* Missouri (816) 936-5649 (Kansas City) Montana (303) 844-2364 (Denver) Nebraska (816) 936-5649 (Kansas City) Nevada (510) 970-8247 (San Francisco) New Hampshire (617) 565-2895 (Boston) New Jersey (212) 264-5643 (New York) New Mexico (505) 262-6048 (Albuquerque)** New York (212) 264-5643 (New York) North Carolina (919) 790-2877 Ext. 3007 (Raleigh)* North Dakota (303) 844-2364 (Denver) Ohio (312) 575-4244 (Chicago) Oklahoma (918) 333-3331 (Bartlesville) Oregon (206) 615-2125 (Seattle) Pennsylvania (215) 597-4632 (Philadelphia) Puerto Rico (787) 766-5574 (San Juan) Rhode Island (617) 565-2895 (Boston) South Carolina (864) 582-1091 Ext. 260 (Spartanburg)* South Dakota (303) 844-2364 (Denver) Tennessee (615) 907-9501 (Murfreesboro)* Texas-Central/South (210) 472-6433 (San Antonio)** Texas-Dallas County (214) 346-2355 Ext. 3051 (Dallas)** Texas-North (817) 978-3123 (Fort Worth)** Texas-Southeast (713) 718-3015 (Houston)** Texas-West (505) 262-6048 (Albuquerque)** Utah (303) 844-2364 (Denver) Vermont (617) 565-2895 (Boston) Virgin Islands (787) 766-5574 (San Juan) Virginia (215) 597-4632 (Philadelphia) Washington (206) 615-2125 (Seattle) West Virginia (215) 597-4632 (Philadelphia) Wisconsin (312) 575-4244 (Chicago) Wyoming (303) 844-2364 (Denver) * or Atlanta (404) 562-1315 **or, Denver (303) 844-2364 APPENDIX B: IRS/SSA PUBLICATIONS There are several other IRS and SSA publications which can help employers file wage reports. Several key publications from each Agency are listed below. IRS Publications Tax Guide for Small Business, Publication 334 Farmer's Tax Guide, Publication 225 Employer's Tax Guide, Publication 15 (Circular E) Employer's Supplemental Tax Guide, Publication 15A Federal Employment Tax Forms, Publication 393 Specifications for Private Printing of Substitute Forms W-2c and W-3c, Publication Number 1223. Reporting Back Pay and Special Wage Payments to the Social Security Administration, Publication 957 For copies of these and other IRS publications, please contact the local IRS office listed in your telephone directory or call Toll Free 1-800-829-3676 to request this information. SSA Publications Employers Guide to Filing Timely and Accurate W-2 Wage Reports For copies of this publication, please contact your regional SSA Employer Services Liaison Officer, (see appendix A). Software Specifications and Edits for Annual Wage Reporting Publication No. 31-011. You can obtain copies of this SSA publication by; a. Using a personal computer and modem to access either SSA's Online wage Reporting System (OWRS) at 410-966-8450 or IRS's electronic BBS at 304-264-7070. You can also access this publication online at http://www.ssa.gov. b. Forward written requests to: Social Security Administration Office of Financial Policy and Operations Attn: AWR Software Standards P.O. Box 17195 Baltimore MD 21297-1195 End of File ??