I need to change an employees 2009 wages, amend 941 and prepare corrected W2 & W3
The employee received an allowance not subject to Federal taxes but subject to SS and Medicare
If you have not refunded the Federal withholding in 2009, I would not change anything. Your employee will get the refund when he/she files their personal income taxes.
It is slightly more complicated, Corae. If the allowance was not subject to Federal taxes, then Box 1 of the W-2 should be that much less, than box 3 and box 5. The problem is not the actual amount of the federal withholding, but the reporting of wages subject to or not subject to federal withholding. Kind of the same stands for the 941: this portion of the wages should not be added to line 2.
JohnFCS: I know that QB cannot create the amended 941 (Form 941-X). You would need to download it from the IRS web-site and hand-fill it. I don't create regularly W-2's with QB, so I don't know if it can create W-2c's or not.
Reka
I stand corrected. Thank you, Reka.
