OSC will identify and mail corrected Form W-2s to the affected employees. These corrected forms will reduce the reported Social Security and Medicare wages by the value of the Military stipend amount paid to the employee in the tax year. The decrease in the reported Social Security and Medicare wages will result in a decrease in the Social Security and Medicare taxes withheld and reported in the original Form W-2. Employees will be refunded their overpaid taxes once the monies are received from the Internal Revenue Service.
OSC will begin corrections with tax year 2006.
There will be no direct deposit for this refund check.
OSC will provide agencies a list of the affected employees.