W-2cs for Employees Who Do Not Update Their State Taxes
Hi Payroll Talk,
I have a question on how your companies handle post tax year changes as it pertains to state income taxable wages (Box 16). In the past, I have always had the employees work with the states when filing their taxes if they failed to notify the company that they have moved (or are having an incorrect state withheld). However, at my current company, it is open season for anyone that comes to payroll and states that they should have been in California for half of the year and Oregon for the other half (when they just were setup for California for the full year)....or some other variation thereof.
So how do you typically handle these situations? Do you issue W-2cs and calculate what the employees taxable wages should have been based upon changes they are giving you after the tax year, or do you tell them to work directly with the state?