Amendments
Understand the importance of filing tax amendments to correct payroll errors and avoid penalties.
What is an amendment?
An amendment is a correction or adjustment made to a previously filed payroll tax return or form. Amendments are typically necessary when an error or omission is discovered after the original filing has already been sent to the corresponding tax authority.
The primary purpose of filing an amendment is to correct inaccuracies or provide additional information that was not included. Reasons for amendments include:
- Correcting Employee Wages: Preparing various reports that summarize payroll activities such as wages paid, taxes withheld, and other payroll related expenses.
- Correcting Taxes Withheld: Providing employees with necessary documents like W-2s or 1099s that detail their earnings and taxes withheld for the year.
- Adding or Changing Employee Data: Ensuring all payroll information is accurate and compliant with federal, state, and local tax laws.
- Record Keeping: Maintaining detailed records of all payroll transactions, which are necessary for audits and future reference.
Partners should keep in mind, since amendments are changes to what has already been filed, there may be additional taxes owed. Taxes may need to be collected in the following situations, and amounts will need to be paid when the amendment is filed.
- Forgot to pay an employee and it needs to be recorded in a prior quarter
- Paid an employee in the wrong state in a previous quarter
- Forgot to record a bonus or other payment that was paid to the employee outside of the payroll system
- Partially Failed Filing (Invalid SSN) - Check refunds the tax amount which will need to be recollected when the correct SSN is received and refiled.
Consequences of Not Filing an Amendment:
Failing to file an amended return when errors are discovered can result in penalties, fines, or other consequences for noncompliance with tax laws.
FAQs
Will Check take care of tax reporting for my employers?
As long as Check has complete data such as ID information and the required Authorizations to file and remit taxes on your employer's behalf, then Check will handle tax filing. However, we do recommend partners empower their employers to review tax data to ensure complete and accurate tax and employee information is captured throughout the year.
Recordings
Last updated on June 30, 2024