This is for the same employer which happens to be me. I own my own business. It is true that TurboTax says I overpaid because of rounding errors. With a total gross salary of $61,877.40, Turbotax calculated at 6.2% a Social Security of $3836.40 or $3836 rounded to the dollar. My payroll is done on a weekly basis. So each gross wage per week is $61,877.40/52=$1,189.95. If you figure 6.2% at this weekly rate, the amount that is taken out per week for Social Security is $73.78. At the end of the year when W-2's are calculated, the amount of Social Security is $73.78 x 52 weeks = $3,836.56 or $3,837 rounded to the dollar. As you can see it is $1 more than the calculation made for the total gross wage by Turbotax. As the employer, when I make my withholding payments to the IRS on a quarterly basis on Form 941, there is a "quarterly fraction of cents" adjustment that can be made to adjust for these rounding errors. It is usually not more than a penny or two. But the IRS expects and allows for this penny fraction adjustments.
So yes, looking at the total wages at a whole, I overpaid by $1 or if we want to look at cents, I overpaid by 16 cents because of rounding errors. This is way too much trouble to do W-2 corrections for only a 16 cent difference. Can I just ignore this $1 (or this rounding error) since even the IRS knows there is going to be fraction of cents adjustments? Also, error must be new because I have been using Turbotax for years and it never came up before and the wage has been the same for a couple years.
You likely won't be able to ignore it completely as TurboTax will throw it up as an error and likely prevent you from filing. However, you can adjust the Box 4 amount from your W2 by the one dollar and you should be able to proceed from there.
See TurboTax guidance for a single employer situation -
"You can correct the Box 4 amount yourself before filing. Simply multiply the amount in Box 3 by a factor of 0.062 and enter that amount or 7,960.80 (whichever is less) in Box 4."
You may adjust the Box 4 amount from your W-2 by the one dollar and you should be able to proceed with efiling.
See TurboTax guidance for a single employer situation -
You can correct the Box 4 amount yourself before filing since it is due to rounding up.