Corrected W-2 and penalties

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#1
Andrew  
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Client works for a US company. She took on an assignment in the UK while still being paid by the US company. Client says she updated her address to a UK address in the automated payroll system. However, the US company kept showing her W-2 as being entirely earned in CA. Client was out of CA for over 546 days (important for CA taxes). Now, payroll dept of the US company gives client push back and says that filing a W-2c will generate thousands of penalties for them. Is this correct? I've filed W-2c's for a few clients, they were nowhere near the size of this company, and never encountered a penalty, Are they're any penalties for filing a W-2c?
Last edited by Andrew on 16-Apr-2021 8:48pm, edited 2 times in total.
 

#2
sjrcpa  
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No. W-2c is the mechanism for making corrections. It is coming forward voluntarily. There is no due date so there can't be a late filing penalty. I don't know what other kind of penalty they are thinking of.
 

#3
Andrew  
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806
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Location:
CA
I couldn't find anything either. Maybe the company is referring to the employee payroll taxes they' have to pay back to the employee: CA state wages and CA State Disability? There's probably a penalty if they don't pay the employee back within a certain time frame.
 


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