Thank you all for so many reply. This is a great community. If I may give an example, it will help me greatly.
I own the S-Corporation and my spouse is my employee.
He is paid total compensation of 190k,
In his W2, we listed the 190k in box1, 147k in box 3 and 190k in box 5,
The above is also what was reported in the 941.
He wanted to continue the contribution to his 401k of 20k, so he's asking if I deposit an additional 20k to his retirement. so his total comp would be 210k
I assume the 20k isn't included in the his box 1,3,or 5 on the W2, is this correct? Hence, I can file a W2c with all boxes (1,3,5) remaining the same and only update box 12 with a code D for the 20k.
And I will expense the 190k as salary line 8 and the 20k on line 17, correct?
I reviewed the 941, I don't see a place to add the 20k , since it's not included in box1 ,3, or 5. Additionally fica stops at 147k, is this correct?
We have a 2 person S Corp and we both set up a self employed 401k, just forgot to add it to the w2 form.
