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Common Errors in Preparing Form W-2

Here's a list of common errors made when preparing W-2 Forms.

This list comes from the Social Security Administration, and we've included instructions for correcting them in the Payroll module.

You may also want to check out the IRS' instructions for Forms W-2 and W-3.

Incorrect Employee Name

On the Add/Edit Employees Data tab, make sure the information in the name fields is correct.

Using Titles with Employee Names

On the Add/Edit Employees Data tab, make sure that you have not entered a title as part of an employee's name in any of the name fields.

Incorrect Social Security Number

On the Add/Edit Employees Data tab, make sure the correct Social Security Number is entered in the SSN field.

Incorrect Address

On the Add/Edit Employees Data tab, make sure you have entered the correct address. Check the Address, ZIP Code, and City/State fields.

Nonstandard W-2/W-3 forms

You can purchase standard forms directly from ACS Technologies. Visit our website for a complete list of forms.

Federal Tax (EIN) and/or State Tax ID Omitted

On the Utilities tab, click Select Data Set. View your organization setup information and verify that you entered a federal and a state tax ID number.

The second W-2 on the page does not line up

If only the second W-2 on the page does not line up, use the Adjust 2nd W-2 option. Entering 1 represents a 16th of an inch. A minus amount brings the 2nd W-2 up and a positive amount pushes the 2nd W-2 down.

The entire W-2 form aligns incorrectly

If the entire W-2 is off, you can adjust the margins first and then adjust the 2nd W-2 if needed. The default margins are .5 for the 2-up statement and .25 for the 4-up statement. If you need to adjust the margins, click the Page Setup icon in the Preview window and click the Margins tab.

The W-3 does not pull the correct local tax on Form W-2

The local tax code for the previous year was different than what is currently on the record. Form W-2 pulls the tax code from the time the checks were posted, and Form W-2 pulls the local tax presently on the record.

To fix this, edit the local tax to match the previous year's. In Add/Edit Employees, select the employee that changed, then click the Taxes tab to change the tax. After printing Form W-3, change the local tax back to the current amount.

The W-2 Summary Total reflects FICA and Medicare wage amounts less than the 941s FICA and Medicare wage

The W-2 Summary does not include one or more employees because the employee(s) had negative wage amounts for FICA and Medicare wages. The 941s and Liability matched and included the negative wages, reducing the total FICA and Medicare Wages by the negative amount.

My Form W-3 is correct, but not all of my Forms W-2 printed

You may have selected an Employee Range when printing the W-2. This range selects employees by name range, not employee code range. It does not affect the W-3.