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Thread: How to calculate corrected W2 for prior period

  1. #1
    Join Date
    Jan 2012
    Posts
    14

    Default How to calculate corrected W2 for prior period

    I'm operating a one-person C Corporation for whatever reason(s). Therefore, I am the corporation's only employee. And my wages are reported on Corporation Income Tax form on line 12 (Compensation of officers) instead of combined with Salaries and wages on line 13. All this is for year 2012. Understand that I am not any kind of tax authority (not a CPA, not a tax lawyer, and not any of the kind). So, what I do or say cannot be used to justify what anyone else does with their taxes. Even so, I believe that what I am doing is one way to comply with legal requirements.

    January 2013, I used PayWindow to calculate W2 and W3, and issued these through the Social Security Administration (SSA) (http://www.ssa.gov/bso/bsowelcome.htm). Now, in February, I realize that the corporation made more profit than I expected. Corrected W2s and W3s can be filed through the same SSA website that I filed the original W2 and W3.

    What I want to do now is have the corporation pay me an annual bonus backdated to December 30, 2012. The effect is that the corporation's net income would be reduced and the corporation taxed on less net income for year 2012. And the employee (I) would be taxed on the bonus for 2012 taxes.

    Finally, I come to my question: I want assurance that PayWindow will use the 2012 tax tables and not 2013 tax tables when I re-calculate the salary with the bonus for 2012. Or, is there some way for me to cause PayWindow to use tax tables of prior periods? Is table selection automatic when I set the date of the payroll?

  2. #2
    Join Date
    Aug 2002
    Posts
    2,638

    Default

    No the current year's program uses the current tax tables and does not have the ability to use past year's tax tables.

    You can download PayWindow 2012 from this link but you may want to talk to your accountant first as generally what you described may be as simple as taking the payment and then paying and estimated tax payment to cover what is needed.
    Paul Mayer
    ZPAY Payroll Systems, Inc.

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