BambooHR Payroll will upload all W-2c files and 1099 corrections within two business days of the correction completion date. To locate them, navigate to Reports > Payroll Reports > Tax Documents. For more information, check out this help guide!

• For any tax funds owed (collections): BambooHR will collect the funds and pay them on your company’s behalf. 
• For any taxes that need to be refunded: The tax agency will refund your company directly. This will likely come through the mail. We are unable to estimate the time of the funds being received. Once we submit the amendment, the timeline for refund is up to the agency

Employees will need to be refunded by the employer. Agencies will not refund employees and will send all funds to the employer. To refund your employee, you may do one of the following:

1. Pay the employee directly (outside of payroll using an off-cycle payroll)
2. Pay the employee in payroll with extra pay using a Non-Taxable Reimbursement pay type (Continue payroll > locate the employee on the Edit page > add the pay type within the Extra Pay column)

To collect funds from an employee for any taxes owed, you will need to collect the funds from the employee directly. This can be done one of two ways:

1. Directly from the employee outside of payroll
2. As a post-tax deduction in BambooHR > Employee Profile > Pay Info > Deductions

When we make Year-To-Date (YTD) corrections, we collect the taxes from the employer. Your employees will only owe additional taxes related to a correction during their annual filing if you do not provide the state or federal tax amounts. We will only correct state and federal amounts if these are provided; otherwise, we assume they will be reconciled/corrected with the annual filing. Federal and state taxes are not based on percentage calculations, but on employees’ selections. We balance and correct all other taxes with the correction process.

The current timeline for an amendment is 60-90 days after the correction is completed. To correct payroll data, there are two steps: 

1. The first step is the “Correction,” where we correct the data in the payroll software. This allows us to populate a W-2c/1099.
2. The second step is the “Amendment,” which is the process of populating new reporting documents and providing the information to the agencies. Once the amendment is created, the agency will refund your company. (see above- link to refund timeline.)

The same ticket will be used throughout the process. We will notify you when the correction is complete, and the ticket is moving to the amendment queue.

Once the correction is complete, BambooHR Payroll will refile the W-2/1099 with the IRS. The employee must file their taxes with the new W-2c or file an amendment return with the corrected W-2c if they previously filed with the incorrect W-2.

Please go to BambooHR > Settings > Payroll > Taxes to confirm all tax IDs and accounts are updated.

If the tax is in ‘Applied For’ status, you will need to enter an ID. If an ID is already listed, simply confirm the number is correct.