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N
NG_ACC
January 17, 2024
Question

Correcting the employee state in the W2 - Tax implications for the employer

  • January 17, 2024
  • 1 reply
  • 0 views

Hi, 

 

We use Quickbooks Payroll Automated filing and the W2 for 2023 was filed shortly after 1/1/2024 by QBO. The employee thereafter updated the W4 for 2023 showing a change in address from NY to NJ. 

 

We now have a mismatch between the W2 and W4. It seems we need to update the employee address in the W2.

 

My question is when we change the employee address in the W2, will this lead to retrospective tax liabilities for the employer? In this case all state taxes were filed for NY instead of NJ. Needless to say we will be filing the correct taxes for NJ in 2024. However, what will be the tax implications for the employer for 2023?

Thanks in advance....

1 reply

S
SarahannC
January 17, 2024

Hello there, NG_ACC.

 

When updating the employee's address on the W-2, there is a possibility that it could result in retrospective tax liabilities for the employer. It's because it got sent to the wrong state. It's also because every state has its tax rates. 

 

Since you're using QuickBooks Payroll Automated filing, our Payroll Support will be the one who'll help and give you more info about this. Here's how:

 

  1. In your QBO account, click on the Help icon.
  2. Choose Contact Us.
  3. Provide a brief description of your issue and follow the on-screen instructions. 

 

You can also check out these articles for more info when filing your W-2 form and making reports.

 

 

If you've got more questions about W2s or any other payroll stuff, juts post again. I'll help.

N
NG_ACCAuthor
January 17, 2024

Hi SarahannC, 

 

Thanks for your reply. The QBO payroll team says there will be no additional tax liability. However, I am finding it hard to wrap my head around this. As you say 'it could result in retrospective tax liabilities'. How can I be 100% certain before making the change?

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