W-2s, 1099s, and Corrections: What Employers Need to Know in February

By February, most employers have officially closed the prior payroll year — but questions, corrections, and follow-ups are often just beginning. Employees start reviewing their tax forms, accountants ask for clarification, and small discrepancies that went unnoticed in January can suddenly feel urgent.

February payroll isn’t about starting fresh — it’s about confirming accuracy, responding confidently, and knowing how to correct issues properly when they arise.

TL;DR — February Payroll Priorities

• February is when employees begin reviewing W-2s and 1099s closely
• Questions and correction requests are common — and expected
• Not every concern requires a correction, but some do
• Corrections handled early are simpler and less disruptive
• Clear processes reduce employee anxiety and employer risk

Why February Brings Payroll Questions

Once tax forms are distributed, employees naturally compare numbers to pay stubs, prior years, and expectations. In many cases, nothing is wrong — but payroll teams are often the first stop when something feels off.

Common February questions include:

• “Why does my net pay look different than last year?”
• “Is this the right address?”
• “Why is Box 1 different from my total wages?”
• “I worked overtime — why doesn’t it match my records?”

Understanding how to respond — and when action is required — is key.

1. Understanding W-2s and 1099s at a High Level

W-2s report wages and taxes for employees.
1099s report compensation paid to independent contractors.

While the forms are straightforward on the surface, the calculations behind them reflect:

• Taxable vs. non-taxable wages
• Pre-tax deductions
• Benefit elections
• Timing of payroll processing

Differences between gross pay, taxable wages, and take-home pay are common — and not automatically indicators of an error.

2. When a Correction Is Needed (and When It Isn’t)

Not every employee concern requires a corrected form. However, corrections are appropriate when there is:

• Incorrect personal information (name, SSN)
• Incorrect wage or tax amounts
• Misreported benefits or deductions
• Classification issues impacting taxable wages

When corrections are required, they are typically issued using a W-2c (corrected W-2). Handling this promptly helps prevent downstream issues with individual tax filings.

Secure HR helps employers evaluate whether a correction is necessary, not just how to process one.

3. Timing Matters — Early Corrections Are Easier

Corrections requested in February are far simpler than those discovered later in the year. Early resolution:

• Reduces employee frustration
• Minimizes administrative effort
• Helps employees file accurate tax returns on time
• Avoids compounding issues with amended returns

Employers who respond quickly and clearly tend to maintain higher employee trust during tax season.

4. Documentation and Record Retention Still Matter

February is also a good time to confirm that payroll records are being retained appropriately, including:

• Payroll registers
• Tax filings
• W-2 and 1099 records
• Correction documentation

These records support compliance, audits, and future inquiries — often long after tax season has passed.

5. Setting Expectations with Employees

One of the most overlooked February payroll tasks is communication.

Letting employees know:

• How to submit payroll questions
• What information is needed for review
• Expected response timelines

…can significantly reduce confusion and repeated follow-ups.

Employers who proactively explain the process often see fewer escalations and more productive conversations.

How Secure HR Supports Employers in February

At Secure HR, we understand that February payroll is less about forms — and more about confidence. Our team helps employers:

• Review employee concerns objectively
• Determine whether corrections are required
• Process corrections accurately and efficiently
• Communicate clearly with employees throughout tax season

If your team is navigating W-2 or 1099 questions this month, we’re here to help you move forward calmly and correctly.

World Class Payroll. First Class Service.