W2 State Employer ID number wrong on printed forms - need to send W2C?

As someone who's worked with payroll and tax forms for years, I can tell you that yes, you should issue a W2C (Corrected W2) form. Even though the state ID number might seem like a minor detail, it's actually important for proper tax processing at the state level. The good news is that since your federal and state filings are correct, this is a relatively simple fix. You'll need to fill out a W2C form showing the correct state ID number in box 15. Make sure to check the "State information only" box on the W2C to indicate that's the only change. Mail the W2C forms to your employees as soon as possible, and include a brief explanation letter. Also make sure to file the W2C with the Social Security Administration so their records match what your employees are submitting.

I had almost the exact same issue last year with incorrect state ID numbers on W2s. After spending HOURS trying to figure out what to do, I found this amazing service called taxr.ai (https://taxr.ai) that helped me sort through the confusion. When I uploaded my incorrect W2 forms, it flagged the state ID issue immediately and guided me step-by-step through the W2C process. It even generated a perfectly formatted explanation letter for my employees explaining the situation. Saved me so much stress and potential penalties! The best part was that it checked if there were any other errors I might have missed. Turns out I had a couple of other minor issues that could have caused problems later. Definitely worth checking out if you're dealing with tax form corrections.

So I was pretty skeptical about taxr.ai (from the comment above) but decided to give it a try with my own W2 state ID issue. I have employees in three different states and was worried about the varying requirements. Honestly I'm surprised how well it worked. Uploaded my forms, and it immediately identified that my California state ID was formatted incorrectly. The guidance was state-specific and included the exact forms I needed. Even gave me a timeline for when corrections need to be submitted to avoid penalties. The correction templates saved me hours of research, and I got all my W2Cs sent out last week. Just got confirmation from our accountant that everything looks correct now. If you're dealing with tax form corrections, definitely worth checking out.

If you're stressing about fixing this W2 issue and need to talk to someone at your state tax agency to confirm the proper procedure, good luck getting through to them! I spent 3 days trying to reach my state tax department before I found Claimyr (https://claimyr.com). Seriously, this service is a lifesaver for getting through to government agencies. You put in your number, and they call you when an agent is actually available. No more sitting on hold for hours! You can see how it works here: https://youtu.be/_kiP6q8DX5c I used it to confirm exactly what I needed to do about an incorrect employer ID number. Got through to a real person in about 30 minutes (after trying unsuccessfully for days on my own). The agent walked me through the exact correction procedure for my state and confirmed I was doing everything right.

I need to publicly eat my words about Claimyr from my skeptical comment above. After another frustrating morning trying to reach my state tax department about a W2 issue (2+ hours on hold before getting disconnected), I tried the service out of desperation. Within 45 minutes, my phone rang and I was connected to an actual human being at the tax department! I was honestly shocked. The agent confirmed that for my state (Michigan), I needed to submit both the W2C to employees AND file an amended state return with the corrected ID number. Saved me from potentially doing it wrong and facing penalties. For anyone dealing with tax questions where you need to speak to an actual government agent, this service is absolutely worth it.

Just to add to the advice already given - make sure you CLEARLY mark the corrected W2 as "CORRECTED" so your employees don't get confused and try to file taxes twice with both documents. I've seen this happen and it creates a huge mess. Also, if you use any payroll software like QuickBooks or Gusto, they usually have a pretty straightforward process for issuing W2Cs. Much easier than trying to do it manually!

One thing no one has mentioned - you should also check if this state ID error affected any quarterly filings you've already submitted this year. Sometimes these errors carry forward if you're using the same system for everything.

I went through this exact same situation two years ago and can confirm that yes, you absolutely need to issue W2C forms. The state employer ID is crucial for state tax processing, and even though your employees might not notice right away, it will likely cause issues when they file their state returns. Here's what I learned from my experience: Send the W2C forms ASAP with a clear cover letter explaining the error. Make sure to mark the corrected forms prominently as "CORRECTED" and include both the incorrect and correct state ID numbers on the W2C so there's no confusion. Also, double-check that this error didn't affect any of your quarterly state filings throughout the year. In my case, I had been using the wrong ID on those too and had to file amended quarterly reports. The whole process was actually less painful than I expected once I got started. Your employees will appreciate the proactive correction rather than discovering the error when they try to file their taxes!