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Employee moved from AL to MS and didn't update her tax withholdings and now she wants a W2C

Are companies legally required to issue a W-2 C if the employee moved mid year and didn't update taxes. As the employer, I would need to amend 3Q17 and 4Q17 tax filings for MS and AL which will be very costly. The employee never paid taxes to MS, so what would be amended. Your help is greatly appreciated.


  • d26kd26k ✭✭

    I would do nothing. Well, I would add an address verification statement to be issued De 1, and returned by Dec 15, not for WH, but for form mailing. Employee has the ability to self correct, via filing returns and making their own deposit.

    I cannot answer on the legality, just what I would do... since I care not about resident taxes, only taxes I have a nexus for (assuming not an at home worker).

  • She worked from home when she moved to MS.

  • acl1118acl1118 ✭✭✭

    Agree with David. If this is the employees error, it would not be corrected. My W2s equal my system of record. If our system reads live in Ky and work in OH taxes will be calculated accordingly. If the employee moved and did not tell us we would not issue a W2c. Now if the employee moved and did notify Payroll, and we did not make the appropriate updates we would issue a W2c, as it was our error.

    Payroll and payroll tax compliance is very involved. As noted previously you must consider nexus, the convenience of the employer rulings, and there is 14 day NY rule and on and on, just to mention a few.

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