Incorrect State Withholding Tax
One of our employees lives and works in MN. But we incorrectly set up the employee’s work tax area as KS as the employee’s manager works in KS office and we assumed the employee will be working in KS office. Employee never looked at pay check in 2017 nor did the employee look at her W2 in Jan 2018. She contacted us today asking us to issue a W2C ; reimburse her tax expense incase MN taxes is higher and she owes more money to MN.
I did my research and told her that she needs to file a non resident form with KS to zero out the taxable wages and taxes in KS and apply that credit to MN when KS refunds the money.
Do I still have to issue her a W2C and correct our 941s for 2017?