Top Ten Mistakes

Mistakes for Withholding Employers


  • Failure to attach W2s to the LW-3 Employer’s Annual Reconciliation of Income Tax Withheld
  • Failure to pay balance due (Box 7) when submitting the LW-3
  • Failure to follow instructions for filing electronic W2s (PDF)
  • Failure to verify employee addresses for resident vs. non-resident employee withholding rate
  • Failure to verify business location as a resident or non-resident status
  • Failure to verify L941 (PDF) filing status (monthly or quarterly)
  • Failure to file an employer corporate return
  • Failure to mark LW-3 as final or indicate address change (if applicable)
  • Failure to submit L-6-IT (PDF) notice of change or discontinuance
  • Failure to annually review payroll administrators’ records for accuracy (i.e., ADP, Paychex)
  • Submitting zero L941 (PDF) coupons if the company has no withholding for the month or quarter.