Corrections
Sometimes you find a mistake after a form has gone to the agency: a pay run posted with the wrong hours, an employee’s wages reported in the wrong quarter, a contractor paid more than you reported. You can’t simply file the original form again. Each agency has its own correction form, and in Bokapsys a filed form can’t be regenerated or edited. This page explains the correction route for each form and exactly what Bokapsys does when you click File a correction.
Before you start
Section titled “Before you start”- The original form is recorded as Filed (or Accepted) in Bokapsys. File a correction only appears on a filed Form 941, W-2 or 1099-NEC.
- You know what was wrong: which lines or boxes, the figure you reported, and the correct figure.
- For a 941, you have written down why it was wrong in a sentence or two (for example “Bonus paid 28 March was entered with a 4 April pay date”). The IRS reads this on the 941-X.
- If the mistake started in payroll, the pay run or employee record has been corrected first, so your books and future forms are right. A filed form whose payroll has since changed shows Your payroll has changed since this was built, with a File a correction button and the figures that changed.
- Your role includes correcting filings. See Team and roles.
Is the form filed yet?
Section titled “Is the form filed yet?”| Status of the form in Bokapsys | What to do |
|---|---|
| Ready to review (not signed, not filed) | No correction form needed. Fix the cause and generate it again on Payroll filings. The form is updated in place |
| Signed but not yet sent to the agency | It can’t be regenerated. Treat it as filed: send it as is, record it with Mark as filed, then correct it, or ask Bokapsys support for help |
| Filed or Accepted | Use File a correction below |
The correction forms
Section titled “The correction forms”| Original | Correction | What it is | Where it goes |
|---|---|---|---|
| Form 941 | Form 941-X | “Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund”. Shows, line by line, what you originally reported, the correct amount and the difference | IRS, on paper only. There is no electronic route. Any extra tax owed is paid through EFTPS |
| W-2 | W-2c | A corrected wage statement showing what you previously reported and the correct information | SSA Business Services Online, using its correction option, plus a corrected copy to the employee |
| 1099-NEC | Corrected 1099-NEC | The same form with the corrected box ticked | Made inside the IRS IRIS portal, not by uploading a second file. Plus a corrected copy to the contractor |
File a correction
Section titled “File a correction”- Go to Tax → Filings, find the filed form and click View.
- Click File a correction at the top of the page. A window opens: Correct this 941 (Form 941-X), Correct this W-2 (Form W-2c) or Correct this 1099-NEC.
- The window lists each line or box with the figure you filed. Change only the ones that were wrong; everything else stays as you filed it.
- For a 941, also fill in What are you correcting, and why? and How should the IRS handle the difference? (see below).
- Click Create correction. You see Correction created with Check it, sign it, then file it the same way you filed the original. The correction’s own filing page opens, with status Ready to review.
- The original now shows Corrected, and its page lists the correction under This return has been corrected. The correction’s page links back with Open the original.
- Check the correction, sign it, file it with the agency (see each form below), and record it with Mark as filed. See Filing a return.
If the original has already been corrected once, the window starts from what your latest filed correction reported, so you only change what is still wrong. You can’t start a second correction while one is still unfiled.
Form 941 → 941-X
Section titled “Form 941 → 941-X”The 941 correction window shows these lines, each with the figure you filed: Wages, tips and other compensation, Federal income tax withheld, Taxable social security wages, Social security tax, Taxable Medicare wages, Medicare tax, Wages subject to Additional Medicare Tax, Additional Medicare Tax withheld and Total taxes after credits. Type the correct figure in any line that was wrong. On a 941-X a figure can be negative.
| Field | What it means | Required | Example |
|---|---|---|---|
| What are you correcting, and why? | Your explanation, which the IRS reads. At least a sentence | Yes | Overstated federal income tax withheld on the March payroll |
| How should the IRS handle the difference? | Adjust it on a future deposit (underpaid, or overpaid and you want the credit applied to this quarter) or Claim a refund (overpaid and you want the money back) | Yes | Adjust it on a future deposit |
Bokapsys builds the 941-X showing, for each line, what you originally reported, the corrected figure and the difference. Only the differences in the tax lines (income tax withheld, social security tax, Medicare tax, Additional Medicare Tax) add up to Amount you owe or Overreported tax to credit or refund. A correction to wages alone, with no tax difference, owes nothing.
Then:
- Post it on paper to the IRS address for your state and keep a copy. The How to file this card on the 941-X says so; when you record it, How did you file it? starts on Posted a paper form.
- If you owe more, pay through EFTPS (eftps.gov) and record the payment.
- Deadline: a 941-X is due with the 941 for the quarter in which you find the error. The IRS generally allows corrections within three years of filing the original return, or two years from when you paid the tax.
Worked example
Section titled “Worked example”You filed a Q1 941 showing $15,000 of wages and $1,860 of social security tax. A $1,000 bonus should have been in Q1. In the window you change four lines:
| Line | Originally reported | Corrected | Difference |
|---|---|---|---|
| Wages, tips and other compensation | $15,000.00 | $16,000.00 | $1,000.00 |
| Taxable social security wages | $15,000.00 | $16,000.00 | $1,000.00 |
| Social security tax | $1,860.00 | $1,984.00 | $124.00 |
| Taxable Medicare wages | $15,000.00 | $16,000.00 | $1,000.00 |
| Medicare tax | $435.00 | $464.00 | $29.00 |
Only the two tax lines count toward what you owe: $124.00 + $29.00 = $153.00, plus any change in income tax withheld. Wages changing by $1,000 adds nothing by itself.
W-2 → W-2c
Section titled “W-2 → W-2c”The W-2 correction window lists the boxes the original W-2 carried (for example Wages, tips, other compensation, Federal income tax withheld, Social security wages, State wages). Change the ones that were wrong and click Create correction. Bokapsys builds a W-2c for the same employee and year with two sets of boxes: previously reported and correct information. Boxes you did not change, such as the Box 12 codes and state lines, are carried over as filed.
- On the new W-2c filing, check the figures, sign it, and read How to file this.
- Click the Social Security link (ssa.gov/bso). Sign in to Business Services Online and choose the correction option for the year you are fixing.
- Enter or upload the corrected figures there.
- Give the employee their corrected copy (Download form on the W-2c).
- If the correction changes wages or tax you already reported on a 941, file a 941-X for that quarter too.
- Back in Bokapsys, click Mark as filed on the W-2c and enter the SSA’s reference.
A W-2c has no annual deadline. File it as soon as you find the error.
1099-NEC → corrected 1099-NEC
Section titled “1099-NEC → corrected 1099-NEC”The 1099-NEC correction window lists the boxes on the original (for example Nonemployee compensation). Change the ones that were wrong and click Create correction. Bokapsys builds a corrected copy marked as corrected.
The correction itself is made inside IRS IRIS: sign in, find the submission, and correct the form there. Don’t upload a second 1099 file; that would report the contractor twice. A void (cancelling a form sent in error) is also done in IRIS, as a correction with every amount set to zero.
Then send the contractor the corrected copy, and click Mark as filed on the corrected filing in Bokapsys with Uploaded the 1099 file to the IRS and the IRIS receipt number.
How to check it worked
Section titled “How to check it worked”- The original form shows Corrected on Tax → Filings, and its page lists the correction.
- The correction appears as its own row. After you file it and click Mark as filed, it shows Filed.
- The Tax calendar still treats the period as filed.
Common problems
Section titled “Common problems”| Message | What it means | What to do |
|---|---|---|
| Explain what you are correcting and why. The IRS needs at least a sentence. | The explanation on a 941 correction is empty or too short | Write what was wrong and why |
| Choose whether to adjust a deposit or claim a refund. | How should the IRS handle the difference? is empty | Choose one |
| Change at least one line. Nothing on this 941 is different yet. (or …box… on a W-2 or 1099) | No figure differs from what you filed | Change the figures that were wrong, or close the window if nothing was |
| … enter an amount like 1234.56. | A figure isn’t a valid amount | Type it with at most two decimals |
| No File a correction button | The form isn’t filed yet, it isn’t a 941, W-2 or 1099-NEC, a correction is already in progress, or your role can’t correct filings | See “Is the form filed yet?” above, finish the open correction, or ask an admin |