What You Need to Do to Fill out W2 Forms for Your Business Personnel
It is the tax season when many people rush to have their tax returns filed in time to avoid penalties. 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. 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.
Sort Your Employees into Categories
A number of factors are taken into considerations when classifying your employees. Some of these factors are the amount of salary an employee is paid, their type of employment: whether full time or part-time basis, or whether they have been engaged as contractors to serve a certain purpose. Other factors include insurance and tax reprieves, sick and leave allowances.
Gather the Right Details From the Workers
After classification of your workers, the next step is to obtain all the relevant details from them. 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
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. Registration of your company on the IRS site will grant you access to the forms for download. Alternatively, you can check out the social security website and fill out the forms online.
Fill out the W2 Forms with the Right Information
Use the personnel information obtained earlier to fill out the actual W2 forms. Ensure that you complete the forms as carefully as possible because mistakes made here could have serious consequences. 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
For your workers to file their own tax returns they need to have a copy of the completed W2 form. 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.