issue corrected W2 or not?

[WCC]

Payroll clerk accidentally input a deferral change for the last pay period in 2014 as 100% rather than 10%. The final payroll was run and paid in 2014. Employee is surprised and questions HR.

The correction is in process with the record keeper who will send the excess to the sponsor. Plan sponsor will then make the employee whole via payroll in 2015.

Question: is there any reason we need to correct the 2014 W2? Or does it fix itself with the 2015 correction?

Thank you

[Lou S.]

They are correcting it like he never deferred due to the clerical error. You need to amend the W-2 since he didn't actually defer the 100% of pay previously reported on his W-2. If this didn't cross reporting years you could probably just fix in the next payroll cycle.

[david rigby]

Has the 2014 W-2 already been issued? If not, don't issue a corrected form, just issue a correct one.