Mike9241's numbers for the increase-in-compensation method of correction are correct. As indicated, the S corp would have to increase your 2020 compensation by $1,570.38 to make everything work out using this method. The S corp would need to file corrected Forms W-2 and 941 to reflect these changes and pay the $120.14 increase in Social Security and Medicare taxes witheld from your pay. The S corp would also need to pay the corresponding $120.14 increase in the employer portion of Social Security and Medicare taxes. The total cost to the S corp to do this works out to $1,810.66.
