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Date:December 12, 2007
Bulletin Number: 773
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Subject

Automated Print of 2006 Form W-2C (Corrected Form W-2)

Purpose

To advise agencies of the new automated print process for Form W-2C (corrected Form W-2).

Affected Employees
Employees whose previously issued Form W-2 requires correction  due to one of the following:
  • Workers’ Compensation Awards processed in PayServ after a tax-reporting year;
  • Adjustments to wages due to unreported fringe benefits;
  • AC230s processed after the close of the calendar year; or
  • Other adjustments affecting previously reported income and deductions.
Note: A separate bulletin will be issued for the 2004 and 2005 corrected W-2s.

The new W-2Cs may be used to submit an amended tax return for 2006 to report decreased or increased taxable wages.  For employees who have requested and received a W-2C and have filed an amended tax return, no action may be necessary.

Background

Wages paid under New York State Workers’ Compensation Law are exempt from Federal taxes in accordance with Internal Revenue Code Section 104(a) and Section 3121(a)(2).

Generally, when Workers’ Compensation benefits are awarded in the same year as the employee’s disability and this information is received by the Office of the State Comptroller during the calendar year-end processing, the non-taxable benefits will be reflected in the employee’s Form W-2.  When benefits are awarded for a previous year or the information is received after the calendar year-end processing, a correction of the previously issued Form W-2 is required.

Employees who received a Workers’ Compensation award in a previous calendar year were allowed to use their C-8 form to amend their taxes. The IRS no longer allows employees to use this document when filing amended tax returns.

Late submission of AC230s, reporting of taxable fringe benefits and other reportable earnings or deductions to OSC after the year-end processing deadline, erroneous assessment of employment taxes to exempt employees or employees subject to employment taxes who were erroneously reported exempt would also necessitate the correction of a previously issued Form W-2.

Effective Date(s)

OSC will begin mailing the Corrected Form W-2C to the home address of affected employees during the week of December 24, 2007.

OSC Actions

OSC will automatically print all new Form W-2Cs on a weekly basis.  This process will eliminate the need for agencies to type a corrected Form W-2.

The return address for the corrected W-2C will be the OSC address.  OSC will mail undeliverable W-2Cs to the agency.  Agencies will be responsible for mailing the tax document to the latest address on file for the employee. Agencies also need to update employee addresses in PayServ.

Agency Actions

Agencies must continue to submit form AC 2674 for employees requiring a corrected Form W-2 not related to Workers’ Compensation.

Agencies can now view the Form W-2C information in PayServ by accessing the W2c US/Territories page following this path:
Compensate employees > Maintain Payroll Data (US) > USE> W-2c US/Territories.


If the search is for a specific year, enter the EmplID and the calendar year. Click Search.  If searching for multiple years, only the EmplID should be entered.  This search will bring the entire list of W-2c batches for all years that were corrected for that EmplID.  The latest correction will always be at the top of the list.  Click on the entry needed and click View All to view all the boxes corrected.

If an employee is receiving multiple copies of Form W-2C for the same tax year, agencies must view the latest correction in PayServ to help the employee identify which copy should be used when filing an amended income tax return due to either a decrease or increase of previously reported wages.  In Workers’ Compensation cases, it is common to see more than one (1) corrected W-2 for the same year.

Security Roles
Payroll users who currently have access to the W-2 Reprint page will have access to view the W-2c US/Territories page.  The security roles are:
  • SAU 3:  Payroll Inquiry
  • SAU 6:  Deduction and Tax Maintenance
Questions

Questions regarding this bulletin may be directed to the Payroll Deduction mailbox.

Questions regarding Workers’ Compensation Awards may be directed to the Workercomp mailbox.