Two jobs via the same CPEO and excess social security

[DianeW777]

This situation is not common and therefore as a rule it would take two W-2s with different EINs to automatically receive the credit for excess FICA payments on almost all returns.  Since a certified professional employer organization (CPEO) is being utilized by the two different employers you worked for, then only one W-2 is issued and thus creates a need for manual intervention.  It is because of this situation and the need to file the letter with your return that requires paper filing instead of e-file.

• This can be accomplished in the TurboTax CD/Download version only as instructed earlier and placed here for convenience.
  • TurboTax CD/Download Switch to Forms (upper right), select "1040/1040SR Wks" and scroll down to Schedule 3 Line 11. Just above that line there is "Excess Social Security Smart Worksheet" where you can override the amount and it should flow to Schedule 3 Line 11. You should also see it reflected in Line 31 of Form 1040.

Maybe the IRS will develop a plan for this in the future since they have dedicated information pages to this situation.

• CPEO Customers
• Out Sourcing Payroll and Third Part Payers

@Gambit135 

[bearinman27]

Honestly, I cant believe ADP hasn't came up with a way to explain this to their customers and work with tax agencies on a solution. This is actually very common since ADP is one of the largest payroll platforms in the US. There are multiple employees working for 2 different employers who get W2s with the same FEIN of ADP TotalSource. I am currently working on this for my own employees. ADP TotalSource is absolutely no help. They just give you legal words on why they are right in what they did instead of just being helpful. It's so frustrating that the burden falls on the employees to correct this in unconventional ways. Shame on ADP and shame on TurboTax for not having a solution to this common occurrence.

[spinnercat]

@DianeW777  This worked for me for getting the forms to show proper values, but TT registers an error "Excess Social Security should not have a value. There isn't more than 1 W-2 in the return." and won't let me e-File while this error exists. Is there a way to suppress this error and assure TT that this is intended and acceptable? 

[Critter-3]

Since your employer will not issue a corrected W-2, you can manually calculate and update the W-2s so that the correct amount of Social Security tax is being reported.  Then, print and mail Form 843 to request a refund of the excess.  

Take a look at the following TurboTax help article for detailed instructions and links to Form 843 and its instructions.  See the section under What if my employer can't or won't cooperate? under the Single Employer option.

Can I get a refund for excess Social Security tax withheld? 

[Gambit135]

I just want to come back to this and explain how I fixed this issue in case anyone else with 2 employers and one CPEO W-2 has a FICA credit issue.  I will add that I'm a Tax CPA with 20+ years exp. I only use TT, because my return is simple, and for a few bucks my information isn't saved on my more advanced work tax system. 

Issue was Turbo tax wouldn't let me file with one W-2 and claim an excess FICA credit. You need two W-2s, with different EIN's. I input my CPEO W-2 as accurately given, and for my 2nd W-2 I only input  $1 of box 1 income using my actual employer name and EIN. I left all the other boxes on 2nd W-2 blank. Using this, I was able to efile both Fed and State, and I got my full excess FICA credit as filed. Also got a timely and accurately processed return with a timely direct debit.  This method isn't exactly "kosher", but all I did was over report my income by $1.

In the mean time, I also obtained a letter from my CPEO explaining in their words that, in this situation, I'm should be eligible to receive a excess fica credit. I saved a copy of my final paystubs from both employers. And I prepared a cover sheet summing the 2 paystubs to the totals on the W-2 from the CPEO.

1 year later the IRS notice came. Suggesting I took too much FICA credit and to provide support if I thought otherwise. I provided all the support I had prepared, faxed it over. Then a month later the IRS sent me a letter confirming they agreed with me and the FICA credit I claimed was correct. Boom Done.

[edubin]

@Gambit135 - I am grateful to people like you who come back and explain how they did things!  However, I don't know if I have the stomach to do what you did (especially this year), even though I'm really not looking forward to MAILING my return in (the alternative, it seems).

This is NOT that uncommon anymore, TurboTax!

Not sure what I'm going to do yet.  Thinking...

[LenaH]

If you have excess withholding on multiple W-2s where the Employer Identification Number (EIN) is the same, you’ll need to enter the excess Social Security tax withheld in forms mode directly on Schedule 3. T...

When using forms mode, you must manually calculate the excess Social Security tax withheld.  You’ll ...

@Gambit135  @edubin 

[edubin]

Yes, I have done this adjustment manually. The issue is that TurboTax flagged it and will not let me e-file for federal or state with this manual adjustment.  I am very reluctant to mail in my paper return after years of efiling.