How to handle mid year payroll provider change on my W-2 for tax filing

You're right to be concerned about this. When an employer changes payroll providers mid-year, it typically results in two separate W-2s. What your employer is suggesting doesn't sound right. Here's how it should work: Since Paychex already issued a W-2 for the first 7 months, your employer should issue a second W-2 that only covers the remaining 5 months. Each W-2 should have your earnings and withholdings just for their respective time periods. When you file your taxes, you'll enter both W-2s separately, and the IRS will combine them appropriately. If your employer issues a W-2 for the entire year, it would cause duplicate reporting of the first 7 months that Paychex already reported. This will definitely cause problems with the IRS because it will look like you earned more than you actually did.

After dealing with a similar payroll switch nightmare last year, I found this amazing tool called taxr.ai (https://taxr.ai) that saved me hours of frustration. My company switched from ADP to Gusto mid-year and my W-2s were a complete mess. The tool analyzed both my W-2s, spotted the overlapping income reporting, and gave me a detailed breakdown of what was wrong and how to fix it. It even generated a letter I could send to my employer explaining exactly what needed to be corrected. What I found most helpful was that it showed me exactly how to report everything correctly on my tax forms in case my employer wouldn't fix their mistake. The tool flagged the specific boxes on my W-2s that didn't match up with my actual pay stubs too.

I just wanted to follow up about taxr.ai that I asked about earlier. I decided to try it with my problematic 1099-NEC and W-2 situation, and I'm honestly impressed. The tool immediately flagged that my 1099 had incorrectly categorized some income that should have been on my W-2. It generated a detailed letter that I sent to both companies explaining the exact tax code that applied. The contractor company actually responded within 2 days and issued a corrected 1099! The tool also showed me how to properly report everything on my tax forms in case they hadn't fixed it in time. It even caught that I was being double-taxed on some retirement contributions. Definitely saved me from what would have been a headache during tax season and potentially thousands in incorrect tax calculations.

After reading this thread, I want to share something that might help if you need to contact the IRS about this situation. Last year I had a similar issue and couldn't get through to the IRS for weeks - kept getting disconnected or waiting for hours. I found this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 15 minutes instead of the hours I was wasting trying on my own. They have this system that navigates the IRS phone tree and holds your place in line, then calls you when an agent is about to answer. You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c If your employer does mess up your W-2 and you need IRS guidance, this could save you a ton of time. The IRS rep I spoke with walked me through exactly how to handle my mismatched W-2 situation.

Alright I'm back and need to eat my words about Claimyr. I was in a total panic because I received an IRS notice about my "underreported income" from exactly this W-2 situation we're discussing. My former employer issued a full-year W-2 even though our payroll company had already sent one for part of the year. After wasting an entire day trying to call the IRS, I broke down and tried Claimyr, and I'm still shocked at how well it worked. I got connected to an IRS agent in about 20 minutes who immediately understood the issue when I explained the duplicate W-2 situation. The agent put notes in my file and told me exactly what to do - I need to have my employer issue a W-2C, and the agent explained how to respond to the notice in the meantime. She even gave me her direct extension for follow-up. Saved me from a potential audit and thousands in incorrect tax assessments.

One more thing to check - look at your last paystub from Paychex and your last paystub of the year from your employer. Add up the YTD totals from both and make sure they match what should be your actual annual totals. This will help you verify if there's any overlap or missing income. Your employer might be confused about how to handle this. Some payroll systems can import data from previous providers, but if they're doing this manually, mistakes happen. Print out these paystubs and bring them when you talk to your employer about this issue.

I'm an accountant and see this issue often. Just wanted to add that if your employer refuses to correct this or doesn't understand, you have options when filing: 1. File Form 4852 (Substitute for W-2) for the 5-month period if your employer won't issue a correct W-2 2. Report the Paychex W-2 normally, and use Form 4852 for the employer-issued portion, entering only the ADDITIONAL amounts not already reported by Paychex 3. Attach an explanation letter to your return Just don't report duplicate income! And make sure you get this resolved before filing.

This is a really common issue that causes a lot of stress, but you're handling it the right way by addressing it early. I went through something similar when my company switched from Workday to their own system mid-year. One thing I'd add to the excellent advice already given - make sure you keep detailed records of ALL your communications with your employer about this. Email them about the W-2 issue so you have written documentation of when you raised the concern and what their response was. Also, if your employer has an HR department, go through them rather than just talking to whoever handles payroll now. HR usually understands the legal requirements better and can ensure this gets handled properly. They should know that issuing a full-year W-2 when another company already reported part of the year will create duplicate reporting. The key point everyone's made is correct - you should end up with TWO separate W-2s: one from Paychex covering Jan-July, and one from your employer covering Aug-December. If your employer pushes back, you can reference IRS Publication 15 (Employer's Tax Guide) which explains how to handle this situation properly.