Amended Return Processing

Overview

ProPay handles original tax returns only. It does not generate amended returns such as Form W-2c, Form 941-X, or Form 943-X. If you need to correct a previously filed return, you must prepare the amended forms manually through the IRS website or your tax preparation software.

This topic explains when amended returns are required and where to find the correct IRS forms.

Filing Original Returns in ProPay

ProPay supports filing original federal tax returns through two methods:

E-file original returns:

From the ProPay Main Menu, click Client Functions > Electronic Functions > Magnetic Media.
Select the client(s).
Click Create Magnetic Return.

Print original paper returns:

From the ProPay Main Menu, click Client Functions > Tax Returns.
Select the return type.
Select the client(s).
Click Print Return.

When Amended Returns Are Needed

You must file an amended return when the original return contained errors such as:

Error Type	Example	Amended Form Required
Wrong employee SSN on W-2	Incorrect Social Security number filed with SSA	W-2c / W-3c
Incorrect wages reported	Wrong gross wages in Box 1 of W-2	W-2c / W-3c
Wrong tax withholding	Federal tax withheld amount incorrect	W-2c / W-3c
Quarterly 941 error	Incorrect wages or tax amounts on Form 941	Form 941-X
Annual 943 error	Incorrect amounts on agricultural employer return	Form 943-X
Annual 944 error	Incorrect amounts on small employer return	Form 944-X
FUTA tax error	Incorrect unemployment tax on Form 940	Form 940 (check "Amended Return" box)

> Note: Do not file a W-2c for rounding differences of a few cents. The SSA accepts minor rounding variations between the W-2 and W-3 totals.

IRS Forms for Correcting Returns

Since ProPay does not generate amended returns, use the IRS website to download the correct forms and instructions:

W-2 corrections

Form W-2c (Corrected Wage and Tax Statement) — About Form W-2c
Form W-3c (Transmittal of Corrected Wage and Tax Statements) — About Form W-3c
File Form W-2c with the SSA as soon as you discover the error. There is no specific deadline, but earlier corrections are easier to process.

Quarterly and annual return corrections

Form 941-X (Adjusted Employer's Quarterly Federal Tax Return) — About Form 941-X
Form 943-X (Adjusted Employer's Annual Federal Tax Return for Agricultural Employees) — available at Correcting Employment Taxes
Form 944-X (Adjusted Employer's Annual Federal Tax Return) — available at Correcting Employment Taxes

FUTA tax corrections

There is no separate "940-X" form. To correct a previously filed Form 940, file a new Form 940 and check the Amended Return box at the top of the form. See About Form 940.

> Tip: The IRS maintains a complete list of corrected employment tax forms at Correcting Employment Taxes.

Common Correction Scenarios

Wrong SSN on a W-2: File two W-2c forms. The first W-2c uses the incorrect SSN with zeros in all money fields. This tells the SSA to disregard the original. The second W-2c uses the correct SSN with the accurate wage and tax amounts. Include both W-2c forms with one W-3c transmittal.

Incorrect quarterly wages on Form 941: File a Form 941-X for each quarter that contained an error. Choose one of two correction methods: Adjusted Employment Tax Return for underreported amounts, or Claim for overreported amounts.

Missing retirement plan checkbox on W-2: File a W-2c correcting Box 13. Provide the corrected W-2c to the employee and file with the SSA.