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You are correct a single employer withholding excess social security should issue a corrected W2. Here is IRS Topic 608 for reference.
If your employer won't give you a Form W-2c, you can edit the amount you enter into TurboTax. Just use the following calculations to get the correct amount.
You can file your return with the correction you made, but we strongly recommend trying to get an updated W-2 from your employer first.
You should also file IRS Form 843, Claim for Refund and Request for Abatement to get your excess withholdings refunded. Don't file this form with your tax return.
Withholdings calculations
Social Security tax: Multiply the amount in box 3 by 0.062 to get the correct amount to enter in box 4.
Railroad Tier 1 tax: Multiply the amount in box 3 by 0.062 to get the correct amount to enter in box 14.
Maybe some eye opening info may persuade them depending on how many employees they have :
Incorrect W-2 penalties are calculated at a rate of $100-per-incorrect-form. The Social Security Administration has been returning forms W-2 with name/number mismatch problems to employers for corrections for the last several years, but there is now new W-2 tax form information that employers must be wary of.
Now look at your last pay stub ... did they actually withhold too much ? Or is the W-2 simply wrong? If they did withhold too much then they also paid too much as well. It would be in their favor to correct the situation not only for you (and any other employees) but for themselves as well. Doing it right should be the benchmark not the cost. The employer can get the forms from the IRS for free and fill them in manually themselves ... no CPA needed (including the 941 they need to amend to get a credit on the next 941 they file this year). And if this is how they handle important tax matters then you may want to rethink being employed by them at all.
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