📄 Tax Form Issues

Stay compliant and avoid penalties by resolving tax document problems early.

Overview

Tax time can be stressful, but it doesn’t have to be chaotic. FlexPay’s built-in tax engine automatically calculates, tracks, and prepares your federal and state tax forms based on every pay run, adjustment, and employee record. However, mistakes do happen: incorrect SSNs, wrong state assignments, unreported contractor payments, or failed form submissions can all trigger IRS rejections or state-level compliance flags.

This section helps you review, correct, and regenerate the most common tax forms, including:

• W-2s (for employees)

• 1099-NEC (for contractors)

• State Withholding & Unemployment Reports

• Quarterly IRS Forms (941, 940, etc.)

🔍 Common Issues & Fixes

1. 🧾 W-2 Errors

W-2 problems usually stem from:

Issue	Likely Cause	Fix
Missing W-2	No payment processed or pay run was voided	Re-run payroll or check 🧯 Payroll Logs
Incorrect amounts	Manual off-cycle edits or missed deductions	Adjust payroll via 🛠 Adjustments tool
Name/SSN mismatch	Typos or data import errors	Go to Employee Profile → Tax Info to update

---

2. 👷 1099 Issues

If you're using contractor workflows (see 👷 Paying Contractors Only), you’ll be generating 1099-NEC forms. Common issues:

• Missing Taxpayer ID: Go to Contractor Profile → Tax Info

• Underreporting: Confirm all invoices were marked as paid within FlexPay

• Incorrect totals: Double-check filters used in Pay Runs → Contractor Payment Summary

💡 Tip: Contractors who earn under $600/year do not require a 1099 form.

---

3. 🗂️ State Filings Fail

FlexPay auto-generates most state tax filings, but errors can arise from:

• Incorrect state assignment: Check Work Location → State Assignment

• Invalid SUI rate: Update in Settings → Tax → SUI Rate

• Missing power of attorney or e-file authorization: Refer to 🧾 State Tax Setup for guidance

---

4. 🧮 Quarterly IRS Form Errors

Quarterly forms like the 941 summarize federal taxes withheld. Fix common issues by:

• Reviewing Payroll Totals Report

• Ensuring no negative balances exist in deductions or employer contributions

• Verifying that any off-cycle adjustments were reallocated

---

🖼️ Figures & Examples

Figure 1. FlexPay's W2 Preview Interface

Figure 2. See Real-Time Status For Each State Form Submission

---

⚠️ Warnings & Reminders

• 🔐 Reminder: You cannot file corrected forms (W-2c, 1099 amendments) unless the original has been submitted.

• ⚠️ Warning: Filing late or incorrect forms can trigger penalties from $50 to $270 per form depending on how late they are.

• 🧠 Hint: FlexPay auto-archives every submitted tax form under Reports → Tax Forms → Archive, so you can always recover history.

---

✅ Summary

FlexPay makes tax reporting as hands-off as possible, but no system is perfect. Whether it's an incorrect SSN, a late contractor payment, or a failed state e-file, FlexPay gives you the visibility, tools, and audit logs to resolve every issue without stress.

This page is built on everything from 👷 Contractor Management to 🧾 State Setup, showing how your configuration directly affects compliance. And with real-time flagging, auto-calculations, and editable form previews, FlexPay eliminates the guesswork and panic that normally surrounds tax season.

---

🚀 What’s Next?

❓ General FAQ – Clear up common confusion and get quick answers to your most frequent FlexPay questions.

From "How do I void a pay run?" to "Can I override benefit contributions mid-cycle?" the next section provides a searchable, filterable knowledge base of answers. It’s the best place to resolve small questions quickly without reaching out to support. You’ll also learn a few hidden tricks and power-user shortcuts to use FlexPay like a pro.