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Corrected 2020 W2 Due to Social Security Tax Deferral

FSIS Notice 23-22
Issue Date Apr 26, 2022
Expiration Date May 01, 2023
Full Notice
FSIS Notice 23-22
  1. PURPOSE
    This notice announces that the National Finance Center is starting to mail out corrected 2020 Form W-2c, (Corrected Wage and Tax Statement) for Social Security Debts that were paid in full in 2021.  The W-2c is available via the Employee Personal Page (EPP) at: https://www.nfc.usda.gov/EPPS/index.aspx?ReturnUrl=%2fepps%2f .  Corrections are usually issued at the end of the original W-2 in EPP.  If a debt has not been paid, a W-2c will be issued after the debt has been satisfied. 
  2. BACKGROUND
    1. A Presidential Memorandum was issued on August 8, 2020, and guidance followed from the Internal Revenue Service (IRS) on August 28, 2020, to temporarily defer Social Security (Old-Age, Survivors, and Disability Insurance (OASDI)) tax withholdings for eligible employees, which were employees earning less than $4,000.00 per pay period.
    2. USDA employees are serviced by the National Finance Center (NFC) and eligible employees experienced temporary deferral of OASDI tax withholdings during Pay Periods (PP) 18-25, 2020.  Collections of the deferred taxes were deducted from wages paid between January 1 through December 18, 2021 (PP 26, 2020, through PP 25, 2021). 
  3. EMPLOYEE RESPONSIBILITES
    1. According to Internal Revenue Service IRS Notice 2020-65 (Form W-2 Reporting of Employee Social Security Tax Deferred under Notice 2020-65), no further steps are required if an employee had only one employer during 2020 and the employee’s Form W-2c, for 2020 only shows a correction to Box 4 to account for employee Social Security that was deferred in 2020 and repaid in 2021 pursuant to IRS Notice 2020-65, as modified by IRS Notice 2021-11. 
    2. However, if an employee had two or more employers in 2020 and their Form W-2c for 2020 shows a correction to Box 4 to account for employee Social Security that was deferred in 2020 and repaid in 2021, the employee is to use the amount of Social Security tax withheld reported on the Form W-2c to determine whether the employee had excess Social Security tax on wages (or compensation) paid in 2020.
    3. Additionally, employees may need to take further action if they are expecting a W-2c for tax situations not covered by this notice.   
    4. Employees are to contact a tax professional if they need assistance with their individual tax circumstances. 
  4. QUESTIONS
    To locate your W2c, sign into your EPP at https://www.nfc.usda.gov/EPPS/index.aspx?ReturnUrl=%2fepps%2f, click on W-2, and scroll past the original W-2 to the W-2c.  Further EPP questions may be directed to 1-877-FSIS-HR1 (1-877-374-7471) or email FSISHR1@usda.gov and include “EPP” in the subject