first, either contact the SSA about the 2nd w-2 (to see if it was filed then you can ask what to do if not) or look at your wage and income transcript on the IRS website. if not there then the SSA never got it
what ein was use on the second w-2 from the 3rd party payer? is it a 2021 w-2?
as you can see by reading below it depends on the arrangement between the employer and 3rd party. if it's deemed that your employer withheld excess Social Security and Medicare taxes, the easiest solution is to ask the employer for a refund. The IRS will not refund it. If the employer refuses, request a refund from the IRS by completing Form 843, not an amended return, Claim for Refund and Request for Abatement. You can get the form and its instructions from the IRS website. but this also depends on whether that 2nd w-2 was filed.
Payments Made by the Employer’s Agent
Where the employer contracts with a third-party to administer its sick pay plan. The third-party bears no insurance risk and is reimbursed on a cost-plus-fee basis by the employer. Payments made to employees by the third party are treated as if made by the employer. The employer retains the responsibility for tax withholding and payment unless it enters into an agreement with the agent providing that the agent will be responsible for employment taxes.
Payments made by a Third-Party who is Not an Agent
The employer contracts with a third-party insurer to make disability payments to its employees. The third-party bears the risk of insuring the employee, and premiums are paid by the employer and or the employees. The third-party is responsible for federal income tax withholding if requested by the employee and withholding the employee’s share of social security and Medicare tax. The third party is also responsible for the employer’s share of social security, Medicare, and FUTA, unless it transfers the liability for these taxes back to the employer.
To transfer the liability for the employer’s taxes, the third-party must:
- Withhold and timely deposit the employee’s portion of the social security and Medicare taxes;
- Notify the employer of the payments on which social security and Medicare taxes were withheld and deposited, within the time allowed for the third party to make the deposit; and
- Provide a statement to the employer by January 15 following the year during which the sick pay was paid.
Generally, the employer prepares the actual Form W-2 for the third-party sick pay received by its employees using either a separate Form W-2 for the sick pay, or combining it with the regular employee wages on one form. The employer and the third-party payer have the option of agreeing that the third-party will be the employer’s agent solely for purposes of preparing Forms W-2 for sick pay. Under such an agreement, the third-party provides the actual Forms W-2 to each employee, and the employer files Form 8922 to reconcile its employment tax returns.
