Level 3

Question

Excess Social Security - One W-2 from PEO for 2 employers

Forum|Forum|4 years ago
May 4, 2022
2 replies
22 views

A client received 1 W-2 from a PEO for 2 employers. The social security wages is double the normal amount. I used an override to claim the credit for Excess Social security but there is a critical diagnostic saying there must be at least 2 W-2s to e-file. Is there a work around or does this need to be paper filed? Thanks

Lacerte Tax

This topic has been closed for replies.

Level 15

"The social security wages is double the normal amount."

Did you mean, the Social Security Tax is over the limit? How can wages be too high?

Don't yell at us; we're volunteers

Level 13

My client has many companies--call it 4 companies. Each company pays him $100,000.HE RECEIVES ONE W2 from the PEO.

Federal, SS and Medicare wages are $400,000 on his one W2. SS is wrong.

PEO is doing it wrong.

If they gave him 4 W2s, each would have SS of $100,000 and he would get credit for the tax on wages over $142,800, or $257,200.

** I'm still a champion... of the world! Even without The Lounge.

Level 13

I have this, too, with 8 companies using one PEO and issuing 1 W2.

The PEO is doing it wrong.

I enter a bogus W2 with the excess SS wages so the TP gets the excess SS tax as a credit.

(And I bet it is the same PEO as you.)

** I'm still a champion... of the world! Even without The Lounge.

kc6078Author

Level 3

Thanks! It seemed to work for e-filing. Hopefully this situation will get addressed going forward.

Level 15

But will the taxpayer get credit for the excess SS withholding? I think not.

The more I know the more I don’t know.