Updated - Important: Form W-2 Update Regarding Social Security Tax Calculations

[admin_Al]

Updated 1/13/2025:

Hello,

This communication provides clarification regarding the calculation of Form W-2, Box 4 (Social Security tax withheld), following our email sent on January 12.

We have confirmed that the system is calculating this amount correctly. The calculation is based on the employee earnings record, which serves as the source of information for Form W-2 reporting.

How the Information Flows
As payroll is processed, the system uses the posted employee payroll data reflected in the employee earnings record to populate the corresponding boxes on Form W-2. Ensuring that payroll is posted accurately and that the employee earnings record contains correct information will result in an accurate Form W-2.

Release Schedule
We have confirmed that this calculation is working as designed. While there will be no release today, our regular release cadence will continue. The next scheduled release on January 15 will address other items in the program and is not related to this communication. 

Helpful Reminder
We recommend reviewing and verifying employee payroll entries within the program to ensure all information has been entered correctly for accurate Form W-2 reporting.

Thank you for your attention to this matter.

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Hello, 

We have identified a calculation error on Form W-2, Box 4 (Social Security tax withheld). The system was incorrectly calculating this amount based on Box 1 (Wages, tips, other compensation) instead of Box 3 (Social Security wages).

Resolution: A software update (Version 2025.2.04) will be released tomorrow, January 13, to resolve this issue.

Required Actions:

• If you have already filed: Please review your W-2s for accuracy. If discrepancies are found, you may need to file a corrected W-2 (Form W-2c).The W-2c form will need to be created in Information Return System 2025
• If you have NOT yet filed: Please install the update tomorrow and verify the calculations before submitting your forms.