Request a tax form correction (W-2 or 1099) - Homebase Payroll

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Before requesting a correction, review the our guidance on how to read and understand a form W-2 in our help center, here: Read and Understand Form W-2 - Homebase Payroll

Tax Form Correction Guides by Type 

  1. Demographic information correction 
    • Legal Name
    • Social Security Number (SSN) or Employer ID Number (EIN)
  2. W-2 Employee Wage and Tax Corrections
  3. Guidelines for payroll corrections impacting W-2s or prior tax quarters
  4. 1099-NEC Wage Corrections
  5. What happens after a payroll correction / tax form correction is complete? 

Demographic information corrections 

For employees: 

If your legal name or SSN is incorrect on your tax form, please follow the following steps to process this correction. 

  1. Update your profile in Homebase with the accurate, up to date information
  2. Contact your employer or the owner of your Homebase account to proceed with the correction

For employers: 

To update your team member's tax form, please follow the following steps: 

  1. Update the employee's profile with the accurate, up to date information or verify that your team member has already updated their profile
  2. Call or email Homebase Payroll Support with the following information: 
    • Business name 
    • Employee name
    • Correction type

      "Hi Homebase Support! My employee, Rocky Balboa's SSN on his W-2 for 2023 was incorrect. We've updated it now. Please generate a W-2Correction for Rocky!"

  3. Our support team will submit a tax form correction request to issue a new tax form for your employee
  4. Your employee will receive an automated email once the W-2C or 1099C is available in their Homebase profile.

W-2 Employee Wage and Tax Corrections

For W-2 Employees: 

  • Contact your employer or the owner of the Homebase account issuing your W-2. Homebase will only generate W-2 corrections with the approval of an authorized payroll admin or Homebase account owner. 

For Payroll Admins or Account Owners in Homebase: 

  • Contact Homebase Payroll Support with the following information: 
    • Business name
    • Employee name
    • Complete and return the spreadsheet attached at the bottom of this article to enter the impacted team member's wages, taxes, and deductions
    • If you are not certain of the proper tax calculations, Homebase can apply flat rate taxes on your behalf (FICA, Medicare, Unemployment taxes). However, any variable taxes (Federal Income Tax, State Income Tax) will be entered as $0 unless otherwise provided by you.

Corrections to other portions of the W-2 (Box 12, 13, 14 etc)

  • Contact Homebase Payroll Support with the details of your request. Most box corrections on a W-2 have tax implications. 
  • Regardless of the correction, please complete the template attached at the bottom of this this article with the impacted employee names and add columns at the end of the template with the amount of change to be applied for whatever box change you need 
    • Ex: Increase Roth 401k deduction for an employee in Box 12 Code AA
      • Rocky Balboa, increase Box 12 Code AA by $2,000

Guidelines for payroll corrections impacting W-2s or prior tax quarters

  1. Corrections are completed on a first-come-first-serve basis. 
    • Please be patient as our team works through all customer correction requests as quickly as possible
  2. Homebase charges a $200 fee per quarter for amendments to closed tax quarters. 
    • For example, if your payroll correction impacts payrolls in Q3 and Q4 of 2023, you'll be billed $400 for those amended returns. 
    • The first quarter fee may be waived if this is your first amendment with Homebase payroll. 
  3. Homebase will debit and remit any outstanding taxes associated with this correction on your behalf. We will assume all taxes are unpaid to date and remit them automatically.
    • If any taxes associated with this correction are pre-paid, you must tell us immediately so we can adjust our liability collection for this correction. 
  4. You are responsible for any payroll tax penalties or interest applied due to this correction. 
    • Tax agencies often assess penalties based upon lateness or incorrect reporting. As we're generating amended returns, it is likely that the associated tax agencies will charge fees for this correction - these fees are your business's sole responsibility. 

1099-NEC Contractor Wage Correction 

For 1099 Contractors: 

  • Contact your employer or the owner of the Homebase account issuing your 1099. Homebase will only generate 1099 corrections with the approval of an authorized payroll admin or Homebase account owner. 

For Payroll Admins or Account Owners in Homebase: 

  • Contact Homebase Payroll Support with the following information: 
    • Business name
    • Contractor name
    • Correction amount for 1099 wages already recorded 

      Business: Widget Corp
      Contractor: Rocky Balboa
      Correction: Additional $2,000 payment was made outside of Homebase Payroll. Please generate a 1099-C to increase Rocky's wage to include this payment. 
  • For corrections to multiple contractors, complete and return the spreadsheet attached to the bottom of this article to ensure your request is processed as quickly as possible. 

What happens after a payroll correction / tax form correction is complete? 

Homebase will file the required W-2C, 1099C or amended tax filings on your behalf to the relevant tax agencies. 

Team members receiving a corrected tax form: 

When filing your personal tax returns, you'll need to provide both your original tax form (original W-2 or 1099) and your corrected tax form (W-2C or 1099C). 

Payroll Admins or Homebase Account Owners: 

Homebase's Payroll Support team will notify you of any pending payroll tax debits associated with the correction. Upon successful debit (if needed) of those tax debits, Homebase will file the amended tax filings with the appropriate agency. 

If you receive a notice of an amount due to a tax agency: You may receive a notification of penalty for incorrect original reporting. Pay this penalty amount to the tax agency directly. 

If you receive a tax refund check from a tax agency: We always recommend sending a copy of your tax refund check and correspondance from the agency to Homebase Payroll Support to review. If the agency issued the refund in error, they can penalize you if you cash the check in the meantime. If the refund is appropriate for the correction we completed, you're free to cash the check!

 

 

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