This is How to Complete Form W2 for Your Workers
During the tax season, many people are usually in a hurry to file their tax returns in an endeavour to escape the penalties borne by those who fail to do this. All business are expected to have their correct tax returns filed before a particular date to ensure that they are tax compliant. The W2 form is among the many forms you are required to fill by the internal revenue service (IRS) for your employees as a business owner. Amount of tax due, salaries the personnel are entitled to as well as any other deductions are some of the information provided on the W2 form. Anyone whose total earnings per year exceed US$ 600 is supposed to have W2 forms filled for them. Here is what you need to do when filling the W2 forms.
Group Your Workers
Depending on various considerations, different employees are put into different classes. Part-time or fulltime employment basis, contractual agreement, as well as the salary scale of the employee, are some of the factors affecting this classification. You may also need to look at any other benefits due to an employee like tax and insurance reliefs, vacations and sick leave pay.
Collect the Appropriate Employee Data
Once your workers have been appropriately categorized, you need to gather all the relevant information for the W2 forms. Such information includes the amount each employee is earning, the amount of tax to withhold as well as any reliefs they might be entitled to. You will also need their names and addresses and also social security numbers. Ensure that you collect this information before you begin the process so that the process will be as smooth as possible.
Obtain the W2 and W3 Forms
Both W2 and W3 forms are available for download from the internal revenue service website. The employer information is normally contained in form W3 which is filled and submitted together with W2. To obtain the forms, you only need to register your business on the IRS website. Another option is to have the forms filed online by accessing the social security website.
Fill out the W2 Forms with the Right Information
The form W2 obtained should then be completed with the relevant employee data. This should be done carefully so as to avoid making any mistakes that may end up costing you or your employee. The number of employees you have will determine the number of forms you fill since employee needs a single form.
Give out The W2 Forms
The last step in this process is to have copies of the filled out forms presented to your employee so that they can also file their returns. Another copy of the form is then sent to the state’s department of revenue. It is usually expected that you first print out the forms in the correct hard copy format before you submit them.