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. Form W2 is one of the forms to be completed by the business owner for their workers. It provides details of employees salaries, amount of tax payable and also any other money deducted from their pay. The forms should be filled for all employees earning more than US$ 600 per year. Here is what you need to do when filling the W2 forms.
Categorise Your Employees
Your employees are grouped differently depending on a number of factors. 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.
Collect the Appropriate Employee Data
You need to collect the appropriate information from your employees once you have sorted them into their respective classes. The details to record includes salary amount, amount of tax due and also allowances and reliefs due to each employee. You will also need their names and addresses and also social security numbers. This process will be rendered faster and easier if you gather the data in advance.
Download the W2 and W3 Forms
The Internal Revenue Service website contains both the W2 and W3 forms for downloading. 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. The other alternative is to register at the social security website and have the forms filed electronically.
Input the Relevant Details into Form W2
After obtaining the forms and gathering the right information, the next step is to actually fill out the forms. And while you are at it, ensure that you avoid any error that might eventually prove costly either to your business or your employee. A separate form is needed for each employee, hence the number of employees will dictate how many forms you will have to complete.
Forward the Filled out 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. The other copy is then submitted to the state department of revenue. It is usually expected that you first print out the forms in the correct hard copy format before you submit them.