Volusia Public Schools issues corrected W-2 forms after system error found: What to know
Thousands of school employees overpaid in Volusia County
Thousands of employees at Volusia County Schools were overpaid due to errors tied to a new payroll system, district officials said, and many now face having to repay the funds.
DELAND, Fla. - Volusia Public Schools said it has issued corrected W-2C forms to roughly 7% of its employees – teachers, support staff, district staff – after it identified a reporting error with its originally issued 2025 W-2 forms.
What we know:
The district said in a news release earlier this week that the reporting error was discovered during a review of its payroll system migration.
"The migration transferred all historical payroll data accurately, but a gap in the W-2 generation process caused certain deduction records to be excluded from Box 2 of affected employees’ forms," the district said.
What is the district doing about it?
What's next:
Volusia Public Schools said it mailed out corrected W-2C forms to impacted staff, will cover the cost for employees to submit a corrected W-2, and will cover any IRS-issued penalties as a result of the error.
Additionally, the district said it has partnered with Addition Financial should someone need short-term financial help, it has proactively notified the IRS about the error, and hired an independent contractor to conduct an audit to help make sure this error does not happen again.
What they're saying:
"Many of the people who received this letter are teachers, support staff, and district staff who show up every single day for our kids. They don’t come to work expecting to deal with a tax problem we created. That weighs on me personally. I acknowledge the responsibility and assure you that
corrective actions are being taken promptly. All affected employees will receive comprehensive support throughout this process," - Superintendent Dr. Carmen Balgobin in a prepared statement
"A certain amount of disruption is to be expected, but our concern is about the negative impacts to the employees and their families," President of the Volusia Teacher's Union.
Editor's note: We've updated the article to include specifics on the W-2 reporting error, how it was discovered, and what the district is doing to assist impacted employees.
The Source: olusia Public Schools Board Members discussed the W-2 corrections during a workshop last week. Volusia Public Schools issued a news release about the W-2 reporting errors and next steps for employees on Monday, April 20, 2026.