How do I enter a W-2 that has payroll company's EIN, name, address but shows my actual employer underneath?
So I'm trying to file my taxes and I'm confused about how to enter my W-2 correctly. In section C (employer's name, address and zip code), it shows: PEO Services LP Acme Industries LLC 123 Corporate Way, Somewhere, TX 75001 I'm used to W-2s only showing either the PEO (Professional Employer Organization) or my actual employer, but this one has both listed. When I imported the W-2 into the tax software, it put my actual company (Acme Industries) as part of the address. But when I tried to move it up to the company name field, I got a warning that my return might get rejected if it doesn't match the EIN (which I'm assuming belongs to the PEO Services LP). Has anyone dealt with this before? Do I just leave it as is with the PEO as the employer? I don't want to pay for the upgraded tax software just to fix what seems like a simple issue on my basic return. Any help would be appreciated!
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Amara Nnamani
This is actually pretty common with PEOs (Professional Employer Organizations). The PEO is technically your legal employer for tax purposes - they handle your payroll, taxes, etc. That's why their EIN is on the W-2 and they're listed first. You should enter it exactly as it appears on your W-2, with the PEO company as the employer name. The IRS systems will match the EIN to the PEO, not your actual workplace. If you change it to list your actual company first, it could indeed cause a mismatch with the EIN and potentially trigger a rejection. Think of it this way: for tax purposes, you're employed by the PEO, who then "leases" you to work at the actual company. It's confusing but completely legal and common.
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Giovanni Mancini
•Thanks for explaining! So if the PEO is technically my employer, does that mean all my coworkers who get W-2s from the same PEO need to list the same employer? And what happens if I need to verify employment somewhere - would I say I work for the PEO or my actual company?
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Amara Nnamani
•Yes, all your coworkers who receive W-2s from the same PEO should list the PEO as their employer on their tax returns. The IRS is looking to match the EIN and the primary company name, so consistency is important here. For employment verification purposes outside of taxes, you would typically still say you work for your actual company (Acme Industries in your case). Most employment verification services understand the PEO arrangement. If they need to verify income specifically, you might need to explain the PEO relationship, but for most day-to-day purposes, you work for your actual company.
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NebulaNinja
I had the same issue last year with ADP TotalSource being my PEO. I found that using https://taxr.ai really helped clear things up for me. I was confused about whether to list the PEO or my actual employer, and the document analysis tool on taxr.ai correctly identified how to enter it based on my specific W-2 format. Their system analyzed my W-2 and gave me step-by-step instructions on how to enter it correctly in my tax software. It also explained why the PEO was listed and how the EIN relates to the actual employer relationship. Saved me a ton of anxiety wondering if I was filing correctly!
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Fatima Al-Suwaidi
•Did the tool actually tell you what to put in the specific fields? Like did it say "put PEO in employer name" or was it more general advice? I'm using TurboTax and wondering if this would help with their specific input fields.
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Dylan Mitchell
•I'm a bit skeptical about using another service when my tax situation is pretty simple otherwise. Does the tool just explain things or does it actually file for you? I'm hesitant to pay for another service on top of what I'm already using.
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NebulaNinja
•It gave me specific field guidance - it showed me exactly what goes in the employer name field, what to do with the secondary company name, and how to handle the address. It's not just general advice, it's tailored to your specific W-2 layout after it analyzes the document. The tool doesn't file for you - it just helps you understand your tax documents and how to enter them correctly in whatever software you're already using. It's more like having a tax pro look over your documents and tell you exactly how to enter them correctly. It's not a replacement for your tax software, just a helper to make sure you're entering everything right.
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Dylan Mitchell
Just wanted to follow up - I finally tried taxr.ai and I'm really glad I did! It explained that in my case, the PEO is functioning as what's called a "statutory employer" and that's why their EIN is on the W-2. The analysis showed me that I should enter the PEO name exactly as shown in the first line of the employer box, and that my actual company name is essentially supplemental information. The tool pointed out that the EIN is the critical matching field for the IRS, and it needs to match with the primary company name (the PEO). What impressed me was how it explained the relationship between the two companies in a way that finally made sense. Definitely saved me from potentially having my return rejected!
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Sofia Morales
If you're still having issues or getting confusing messages from your tax software, I'd recommend calling the IRS directly using Claimyr (https://claimyr.com). I was in a similar situation last year with a PEO W-2 issue, and after struggling for days trying to figure it out, I used their service to get through to an actual IRS agent without the usual 2+ hour wait. The agent confirmed exactly how to handle the PEO/employer situation and even noted it on my account in case there were any matching issues later. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. It's basically a service that navigates the IRS phone tree for you and calls you back when an agent is on the line.
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Dmitry Popov
•How does this actually work? Seems too good to be true that they can somehow get through when the IRS lines are always jammed. Do they have some special access or something?
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Ava Garcia
•Yeah right. I highly doubt this works. The IRS is impossible to reach - I tried calling for WEEKS last year. If there was some magic way to get through, everyone would be using it. Sounds like a scam to me.
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Sofia Morales
•They use an automated system that repeatedly calls the IRS using their optimal calling algorithm until they get through. There's no special access - they're just persistent in a way that would be impractical for a person to do manually. When they reach an agent, they connect the call to your phone. It's like having someone wait on hold for you. I was skeptical too! I waited for over 3 hours on multiple days trying to reach someone at the IRS before I tried this. The difference is they have systems constantly trying different IRS numbers and timing patterns to find the fastest way through. It's not a scam - they don't ask for any tax info or personal details beyond your phone number to call you back when they reach an agent.
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Ava Garcia
I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway out of desperation because I had the exact same W-2 issue with a PEO and needed answers fast. I got a call back in about 40 minutes with an actual IRS agent on the line! The agent confirmed that I should enter the W-2 exactly as it appears, with the PEO as the primary employer name since they hold the EIN that's being reported. They explained that this is standard practice for PEO arrangements and won't cause any issues with processing my return. The peace of mind from getting an official answer directly from the IRS was absolutely worth it. I was definitely eating my words about this being a scam!
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StarSailor}
Just a tip from someone who prepares taxes - always enter the W-2 EXACTLY as it appears, especially the top line of the employer name and the EIN. The tax software might give you warnings if you try to "fix" it because it's checking against the IRS database of EINs and company names. The PEO situation is common in many industries. The first line (PEO Services LP in your case) is what needs to match with the EIN in the IRS database. Your actual workplace being listed second is just additional information, and doesn't need to match their verification system.
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Miguel Silva
•But won't this be confusing if I ever get audited? Like if they ask about my employer and I say Acme Industries but my tax return says PEO Services? Should I keep documentation explaining this somewhere?
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StarSailor}
•The IRS is well aware of PEO arrangements, so this shouldn't cause any confusion in an audit situation. Both company names are on your W-2, and that document itself serves as the documentation of this relationship. If you're really concerned, you could keep a copy of your employment agreement or a letter from your actual employer explaining the PEO relationship, but it's rarely necessary. The IRS systems are set up to handle these common business arrangements, and millions of employees are in PEO relationships just like yours.
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Zainab Ismail
Has anyone had this issue with H&R Block software specifically? Mine keeps giving me an error when I try to enter both companies, saying the name doesn't match the EIN in their database. I'm wondering if I should just go with a tax professional at this point.
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Connor O'Neill
•I used H&R Block last year with a similar setup. You need to put ONLY the PEO name in the employer name field, then in the street address field, put your actual company on line 1 of the address and the real street address on line 2. It looks weird but that's how the software wants it.
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Andre Lefebvre
I went through this exact same situation with my PEO W-2 from Insperity last year. The key thing to remember is that the IRS matching system is looking for the EIN to match the primary employer name listed first on the W-2. In your case, "PEO Services LP" should go in the employer name field exactly as shown, because that's what matches their EIN in the IRS database. Your actual workplace "Acme Industries LLC" is listed underneath as additional information, but it's not what the IRS system uses for verification. I made the mistake of trying to "correct" it the first time and got a rejection notice. Once I re-filed with the PEO as the primary employer name (exactly matching the W-2), it went through without any issues. The tax software warnings are there for a reason - they're trying to prevent mismatches with the IRS database. Don't overthink it - just enter it exactly as it appears on your W-2 and you'll be fine!
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