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

[kc6078]

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 

[qbteachmt]

"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?

[Accountant-Man]

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.)

[kc6078]

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

[sjrcpa]

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

[Accountant-Man]

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.

[kdaglobal]

Thanks for posting this solution! Since it has been a year, did this work or did you end up with an IRS notice? I am in the situation for TY2022.