The information posted on PayrollTalk is for informational purposes only and is not intended to substitute for obtaining accounting, payroll, tax, or financial advice from a professional accountant.

W-2cs for Employees Who Do Not Update Their State Taxes

edited May 2018 in General Payroll Topics

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?

Thank you!


  • Thanks, David. The company I am with is using an antiquated/rudimentary time tracking and payroll software. We are currently in a Workday implementation that well help solve "some" of these issues, but as you indicated you will always have employees that come back after the fact. I'm just curious what other companies generic responses are. I believe most to be that if the employee did not complete the correct withholding certifications and/or notify the company of a discrepancy within the same year, then they must correct it with the states during their tax filings. Thanks again.

Sign In or Register to comment.