Two jobs via the same CPEO and excess social security

[rxs]

I had two jobs and both employers used the same CPEO.

The CPEO issued a combined W-2 with Social Security tax withheld in Box 4 over the limit.

Since it's considered a single employer, TurboTax (and IRS) won't allow me to claim the excess on Line 10 of Schedule 3.

I'm trying to get the CPEO to split the single W-2 into two separate W-2s for each employer.

However, when I tried to simulate this in TurboTax, I still get an error that I can't claim the excess since both W-2s have the same EIN. TurboTax allows the claim only if I remove the EIN from one W-2.

According to IRS Manual, the claim is allowed in case of two W-2s with the same EIN if issued by a CPEO.

Can you confirm that this case is supported by TurboTax?

Source: https://www.irs.gov/irm/part21/irm_21-006-003r#idm140495068671136

[WendyN2]

Yes, I can as I just tried a "mock test" run in my TurboTax Desktop for employees, entered a fictitious name, etc., and entered two separate W2's with same EIN for Employer using ABC Co and ABC Co #2 and the only alerts I received were for the overpayment into SS and asking me to verify entries. 

[rxs]

@WendyN2Thanks for checking this for me, but when I enter the two W-2s with the same EIN, I get a notice that I need to request a refund from the employer. TurboTax won't allow me to claim the excess on Line 10 of Schedule 3, even though IRS allows to claim it on Line 10 if the employer is a CPEO:

[MaryM428]

This is something that TurboTax is not going to be able to support for you.  In this unique situation, you will need to request to have the overpayment reimbursed by the employer.  The software does not read your information as two different employers.  

[WendyN2]

Hello, and thank you for the note. I am EST but work the PST zone hours so just seeing this now. My apologies.  If your employer is still your employer, then that is the true best bet for you. If they are not, then you might hit roadblocks. Either way, if they used ADP or PayChex - I would contact them directly as well as you will get far better movement from them. If ADP, please let me know as I would be more than happy to assist. You should just get onto your online account and request a "chat" session with a rep (both provide this to employers and employees). That is the fastest way to get a human. I truly would try this first as mailing in is going to take a lot of time due to all of the IRS "slow-downs" due to covid. Reach out to me, please, and let me know how you make out!

[rxs]

@MaryM428I'm quite surprised to hear that.

I tried to import two W-2s with the same EIN in H&R Block and it is explicitly supported in case of a CPEO, see screenshots below. I already have TurboTax Premier 2020 that I'd much prefer to use, so any reasoning as to why TurboTax won't support this use case if it is allowed by IRS?

[rxs]

@WendyN2Thanks for your help. I already discussed this with the CPEO and they are not able to refund the excess directly to me. They originally issued me a single W-2 and are now checking if they can split it into two separate W-2s so I can claim the excess on the tax return, per IRS Manual instructions above. As I said in my previous message in the thread, I'm really surprised TurboTax doesn't support that.

[WendyN2]

I just sent a response to the one you tagged me in. Please confirm that you received that one. Thanks!

[rxs]

@WendyN2I see just one response from you at 11:49 AM EST today mentioning ADP and PayChex

[WendyN2]

Here is the response I sent earlier and I posted and closed it so it should have gone to you but I can see in my queue on Community that it did not.....

Intuit - Multiple W2s From Same Employer

How do I handle multiple W-2s from the same employer?

There are a few different scenarios that the links describe - my manager had provided me with these earlier and this is what I sent to you. I do hope this helps!

[rxs]

@WendyN2 Thanks, unfortunately that link doesn't cover my case in which the same CPEO issues two W-2 forms with the same EIN. This is a valid situation for a CPEO if I had two employers that used the same CPEO -- see IRS Manual in my original post and how H&R Block supports it in my screenshot above.

[WendyN2]

I did see and did read your post and I know the IRS "take" on this. I, honestly, am just baffled now as to what is causing this error message for you still. 

This is what the IRS site states:

"To claim a refund of Social Security and Medicare taxes, you will need to complete and submit IRS Form 843. When you apply for a refund from the IRS, include either: A letter from your employer stating how much you were reimbursed. Or, if you were not, a copy of your W2s that show the amounts withheld in total"

The only thing I can figure to do in order for you to have this flow properly within TurboTax is to adjust the amount to the maximum, and submit to the IRS AND SSA copies of your W2's along with a letter of explanation as to what you E-filed with TurboTax. Remember, please, that the IRS and SSA already have this information from your employer as your employer had to submit a W3 for themselves, along with copies of every single W2 for each of their employees (obviously, the payroll processing firm does this, but same thing). You, personally, sending this via USPS Certified Mail / Return Receipt Requested is doing your due diligence along with applying for a refund from the IRS. This way, BOTH parties (IRS and SSA) are on the same page. I have seen many people do this in past. Again, the decision is obviously up to you. I just wanted to provide you with instruction on a viable option.

[rxs]

@WendyN2Thanks for the detailed answer. I know about IRS Form 843, but according to other threads, it could take IRS a year or more to respond to that form and they might reject it and send me back to the employer for a refund, which they refuse to do.

It seems that the much easier and quicker way for me to get the excess is to claim it on Line 10 of Schedule 3. But in order to do that I need to enter the two W-2 forms in TurboTax. Now, if I don't enter an EIN for one of forms, TurboTax allows the claim. I'm not sure about e-filing it without the EIN, but I suppose I can then print out the return, attach the two paper W-2 forms and mail it in. I would much rather e-file as it would take much much longer to get the refund if I mail it.

It's really unfortunate that TurboTax doesn't support this case. Even more so since H&R Block does.

I think it's really a missing functionality since TurboTax ignores the valid cases for two W-2 forms with the same EIN as described in IRS Manual (agent, parent company, CPEO).

Are you able to escalate this for further review?

[WendyN2]

Yes, I already have. Just to let you know.....IRS is approximating 21 days for E-filing refund issuance turnover and 6-8 weeks for mail in's. I filed mine February 7th (yes, it was ready the 7th) and got my Federal Refund last week on the 17th! So, maybe if you would like to - Fed Ex it AND STILL SEND CM/RRR! You really want that receipt from the P.O. and that "green card" back! 

[rxs]

@WendyN210 days, that's really fast!

Last year I e-filed and it took two months to get the refund.

It means I will also have to mail in my two state returns, which could take even longer.

Please let me know if there are any news regarding this use case.

Thanks for the tip on CM+RRR. I really appreciate your help!