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hadanaoki
Jan 13, 2020 5:51 AM UTC
Solved

Cannot eFile W2/W3 with error: Box 4 Social security withholding is smaller than calcurated from Box 3 plus Box 7 wages. Please check your entries and make corrections.

Original commenter did not share additional details
MaryAnn_EAnswer
Jan 13, 2020 7:19 AM UTC

Hello @hadanaoki,

 

Let's check the Box 4's total amount, and look at the paycheck of your employees. Please follow the steps below to locate the entries that need to be corrected.

 

Here's how:

  1. Run your Payroll Summary report for the entire calendar year.
  2. The amount for Social Security Employee will be equal to the number in this box.
  3. Double click the amount to see what transactions contribute to the total.

 

Once you find the incorrect entries, you can create a liability adjustment to fix it.

 

You can also check this article for more details on how to e-file w-2 forms: E-file Federal W-2 Forms

 

If you have any other related concerns, feel free to post on the comment section below. We're here to help.

 

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11 replies

MaryAnn_EAnswer
Jan 13, 2020 7:19 AM UTC

Hello @hadanaoki,

 

Let's check the Box 4's total amount, and look at the paycheck of your employees. Please follow the steps below to locate the entries that need to be corrected.

 

Here's how:

  1. Run your Payroll Summary report for the entire calendar year.
  2. The amount for Social Security Employee will be equal to the number in this box.
  3. Double click the amount to see what transactions contribute to the total.

 

Once you find the incorrect entries, you can create a liability adjustment to fix it.

 

You can also check this article for more details on how to e-file w-2 forms: E-file Federal W-2 Forms

 

If you have any other related concerns, feel free to post on the comment section below. We're here to help.

 

    hadanaokiAuthor
    Jan 14, 2020 7:29 AM UTC

    Hi Mary Ann,

    Thank you very much for the help.

    I got your team help earlier and did exactly same things as you wrote.

    Thank you very much.

     

    Watersview
    Jan 16, 2020 9:43 PM UTC

    I need additional help - I only withheld the amount listed on the W-2 because my employees have tips and sometimes I cannot withhold the total amount.  I listed the difference in box 12 Code A for uncollected social security on tips.  However, this has not resolved the issue and I'm unable to e-file.  Please advise.

    Kristine Mae
    Kristine Mae
    Jan 16, 2020 10:11 PM UTC

    I'd like to provide how QuickBooks populates this line, Waterview.

     

    Box 12 consists of cash tips or paycheck tips. They are taxable and need to be withheld. 

     

    QuickBooks recognized that the social security amount is incorrect. The reason why you're still unable to file the W-2 form.

     

    You'll have to create an adjustment for the Social Security tax (both company and employee) to correct it. I'll share the article on how you can adjust payroll liabilities in QuickBooks Desktop for the detailed steps. 

     

    Once done, you can try to e-file the form again.

     

    I'll also include the article about W-2 form boxes explained for better guidance. 

     

    If you need more help, please don't hesitate to get back to this thread. 

    Watersview
    Jan 21, 2020 4:17 PM UTC

    I appreciate your help.  However, my issue is that I didn't withhold the amount calculated for SS & Medicare because the employee's wages were primarily cash tips, thus not giving me the funds to withhold from.  The emplyee no longer works for us and if I make the adjustments according to the links you provided, it creates a change to what I owe the govt, which I was unable to collect from the employee.  I need the lower SS and Medicare amounts to remain, however, I need the difference to be reflected in Box 12 of the W-2.  This doesn't seem possible in Quickbooks?????

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