Understanding Payroll Tax Filing Amendments

You had to make a correction that has resulted in the need for an amendment to a payroll tax filing, no worries, let’s look at what amendments are, what causes them, and how they are processed.

What is an Amended Payroll Tax Filing? 

Amended payroll filings are corrections made to previously filed payroll tax forms when errors are discovered. These errors could involve incorrect employee wages, tax withholdings, or employer tax contributions. If a mistake is found after payroll taxes have been reported or paid, employers must file an amended return to correct the information.

Common Reasons for Amended Payroll Filings: 

Incorrect Employee Wages: Reporting wrong amounts of wages, tips, or other compensation for employees (common when implementing payroll in the middle of a quarter).

Incorrect Tax Withholdings: Errors in withholding the correct amount of federal income tax, Social Security, or Medicare taxes (common with misclassification of exempt employees).

Misreported Employer Contributions: Errors in calculating employer contributions, such as Social Security, Medicare, or unemployment taxes (FUTA).

Missed Benefits or Deductions: Failing to include certain benefits or deductions, such as health insurance or retirement contributions, in the original filing.

Classification Errors: Misclassifying an employee as a contractor (or vice versa) and reporting their income incorrectly.

Incorrect Employee Information: Errors in employee names, Social Security numbers, or other identifying information (common mistake is untimely updates of work and home locations for employees, affecting tax calculations).

Processing Amendments with GoCo

Contact GoCo Support with the details of your needed amendment. Once reviewed, and support has all the information required to process your amendment filing, our team will get to work. Any additional filings, corrected filings, payments, and/or credits will be communicated to you by our Payroll support team. 

⚠️GoCo Support Team can only complete your amendment if both of the following conditions are true: 

✅ Your company is currently active with GoCo Embedded Payroll and;

✅ The original quarterly/state filing was filed by GoCo Embedded payroll and accepted by the agency, and;

✅ The amendment is for a quarter within the last eight quarters, or eight quarters from when you originally made the request—whichever is earlier.

📔 Where can I find my amendment once GoCo has completed it?  

Typically about 30 days after your amendment filings has been processed and accepted by the tax authority, you will be able to log in to your GoCo Dashboard and navigate to Company Documents to retrieve your amendment filings for your records. If you do not see your amendment after 30 days, or have questions you can always reach out to help@goco.io 

Processing Amendments outside of GoCo:

If GoCo Embedded Payroll support determined that we cannot process your amendment filing, you will need to follow the process to amend outside of GoCo.

❗ It is always recommended to reach out to your accountant, CPA, or payroll tax expert for guidance through the process.

To prepare for the amendment, make sure you have the following:

• Your original filing and payment details
• Information about the amendment and the reason for the correction
• The date when the error was discovered
• Your state account ID or Federal EIN number
• The correct form for reporting the amendment to the appropriate tax authority

Having this information ready will help streamline the process and ensure everything is reported accurately.

What happens when an amendment is processed? 

Regardless if your amendment filing is processed through GoCo or if you file directly with the tax authority, there is a series of steps that occurs after your amendment has been submitted. 

1. Review by the Tax Authority: The IRS or relevant state agency will review the amended filing to verify the changes made. This can take some time, depending on the complexity of the amendment and the processing times of the agency.

2. Adjustment of Tax Liability: If the amendment changes the amount of taxes owed, the tax authority will adjust your tax liability. You may need to:

• • Pay additional taxes if the amendment increases the amount owed.
  • Receive a refund or credit if the amendment shows that you overpaid.

3. Notification from Tax Agency: Once the state agency reviews your amendment, they will typically communicate with you through a mailed tax notice or through your payroll tax account portal online. 

4. Follow-up Actions: If there are any discrepancies or further information needed, the tax authority may reach out for clarification. In some cases, you may need to provide additional documentation to support your amended filing.

5. Employee Notifications: If the amendment affects your employees (such as changes to their W-2s), you’ll need to provide corrected forms, such as W-2c for employees, so they can update their records and tax returns if necessary.

For any additional questions, please reach out to us at help@goco.io 💚