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. It is a requirement that every business should file their tax returns at the close of every trading year, so as to be in the government’s good books. 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. The W2 form contains information about your employees’ wages, the amount of tax withheld from them as well as other deductions from their salaries. Anyone whose total earnings per year exceed US$ 600 is supposed to have W2 forms filled for them. This is how W2 forms are normally filled.
Group Your Workers
A number of factors are taken into considerations when classifying your employees. 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. Other factors include insurance and tax reprieves, sick and leave allowances.
Collect the Appropriate Employee Data
You need to collect the appropriate information from your employees once you have sorted them into their respective classes. 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. Names and addresses, social security details are also required for the completion of these forms. This process will be rendered faster and easier if you gather the data in advance.
Obtain the W2 and W3 Forms
You can access both the W2 and W3 forms for download at the Internal Revenue Service website. The employer information is normally contained in form W3 which is filled and submitted together with W2. Once you access the site and register your business, you can have the forms downloaded. Alternatively, you can check out the social security website and fill out the forms online.
Input the Relevant Details into Form W2
The form W2 obtained should then be completed with the relevant employee data. Ensure that you complete the forms as carefully as possible because mistakes made here could have serious consequences. A separate form is needed for each employee, hence the number of employees will dictate how many forms you will have to complete.
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. You are also expected to send another copy of the form to the state department of revenue. The copies are usually printed first in the correct format and then forwarded in hard copy.