Delay in getting W2C from my employer | What options do I have?

[noviceattax]

Hello all,

Situation:

1. My company missed on holding FICA taxes for me. After a long (50+) email conversation I convinced them that I should be paying FICA taxes.
2. Now they will be retrospectively holding that for me for the year 2020 and will take some time in issuing a new W2c .
3. Other than the missing FICA taxes everything else is good and my W2 is all correct. The new W2c will only show the additional amount the company has held for my FICA taxes.

Limitations:
The new W2c may come after April 15th and also I have to travel so I can file the return only before April 4th. It is very less likely to get the W2c before April 4th.

Questions:

1. Is it okay if I just file my tax return with the current W2 and let the company pay my past FICA taxes when they want?
2. Will I have to file an amendment once my company issues me the new W2c? (Note that with with this new W2c there won't be any change in the amount I will get as return or what I have to pay. This will only show the additional amount the company has held for my FICA taxes.)
3. Will I need to do anything else in this scenario?

[DawnC]

If you file your W-2 as is (you can file the w-2 and pay the SS tax on your return), and receive the corrected W-2 later, you will have to file a Form Form 843, Claim for Refund and Request for Abatement to get back what they withheld since you will have paid it in your tax return.   You have the option to file a substitute W-2 with your return, but you will have to file by mail in order to include a substitute W-2, I will leave instructions below.   The other option is to file an extension.    Filing an extension doesn't give you additional time to pay owed taxes, which are due April 15, 2021 (it's the same date for taxpayers out of the country).  If you can't pay owed tax by the deadline, always file an extension so you can avoid the late-filing penalty, which is up to 10 times higher than the late-payment penalty.  Then you can file when after you get the corrected W-2.  

How do I file a substitute W-2 using Form 4852?

Employees who do not have taxes withheld nor remit them personally, are still liable for these taxes and may not qualify for Social Security, Medicare, or unemployment benefits.

Employees who are concerned that their employer is improperly withholding or failing to withhold federal income and employment taxes should report their employer by contacting the IRS at 800-829-1040.   In cases where the employer withheld employment taxes but failed to deposit them, or failed to issue a correct W-2s, the employee should contact the employer to request the W-2.  If the employee is unable to secure a W-2 from the employer, the employee should complete and attach Form 4852, Substitute for W-2, to their tax return using the best information available to calculate the wages and the withholding.  This information can often be secured from pay stubs. 

In addition, if the employer refuses to withhold employment taxes from these wages and the IRS is unable to collect the employment taxes from the employer, the employee still has the responsibility to pay income tax and is ultimately responsible for his/her share of the FICA tax.

[noviceattax]

So, can I pay the missing FICA taxes directly on my return? And ask my employer not to hold them?

In this case I neither need to wait for an amended W2C nor file for a refund. Right?

[DianeW777]

No.  Your employer will correct the employer payroll reports and issue you a corrected W-2 for your social security and medicare taxes (commonly known as FICA) paid by you. This will correct the Social Security Administration records for you as well.

The FICA taxes will not affect your tax return since the correction is coming from your employer.  You can file your return with the correct amounts shown on your W-2 (confirm with your employer), adding the correct social security and medicare taxes, as they appear right now, in the appropriate boxes .

There is no need to wait for the W-2C before filing. The only boxes that will change on the W-2C should be 3, 4, 5 & 6 (maybe only 4 & 6).

[Edited: 03/16/2021 | 5:33a PST]

[noviceattax]

Thanks for the response @DianeW777 .

Do you mean in my turbo tax I should go and manually edit the W2 to reflect the new (expected) values for IFCA taxes? I do know the additional amount they are going to hold for FICA taxes. However, they have not yet it for 2020 (I started working for them from last week  of Oct 2020. So for around 2 months.). They will do so in my upcoming pay checks and they will be able to hold the complete amount earliest by mid April or so only.  Is it still okay and legal to edit the W2 on my own and file the return now itself?

I also have another concern: If I file my returns now and later corrected W2 is generated for me with corrected FICA taxes. How likely it is that it will lead into a follow-up enquiry by IRS or filling an amendment?

[fanfare]

Which ever path you choose, Murphy's Law tells you that you will have to file an amended return.

submit form 4868, estimate generously for tax due, and file only after you get the corrected W-2C and see what your employer really did, not what they say they will do..

They may still mess it up.

[noviceattax]

Thanks for sharing your thoughts. But my follow up question on @DianeW777 's responses still remains unanswered. My question is that is it okay and legal to edit the current W2 manually on basis of what is going to happen in the future? Additional information: Based on my calculations I might owe some ~$10 to the Indiana state however will get a decent return from Federal. Can I still file for an extension? @DianeW777 @DawnC 

[noviceattax]

Additional information: Based on my calculations I might owe some ~$10 (This is less than 1% of my total tax for Indiana) to the Indiana state however will get a decent return from Federal. Can I still file for an extension? @DianeW777 @DawnC