Problem
One of your newly employed pay-roll associates dropped into your office to ask several questions regarding wage reporting for federal income and social security tax purposes. If you were the payroll supervisor, how would you answer each of the following questions raised by your associate?
i. You just noticed that that the social security number is wrong on three of the employee's W-2 forms. How do you go about correcting the forms and will there be any penalties for filing them incorrect?
ii. Ms. Eileen Huang informed you that there was too much Medicare tax withheld from her pay last year. What forms do I use to make the corrections.
iii. A new employee filling out her W-4 form and you noticed that she put down that she has more than 10 dependents, you know for a fact that she only has 2. What if anything should you do? Are you obligated to report her? lastly what advice would you use to caution her from doing such a thing?