Things You Should Know about Taxes
Understand Different Forms
Filing of taxes requires a variety of forms. If you do not know which forms you need to fill, things can become difficult. An example of a form that an employer needs to fill out is the W-2 form. You can create a form W-2 online quickly and give it out to employees if you have any. Forms 1099 and 1040 are examples of different forms you might be required to fill out. If you want to make your work easy, ensure that you familiarize yourself with the necessary documents required.
Deadlines are Important
Because taxes are not fun, many people have the habit of putting them off. If you have never done your taxes before, you must know how strict due dates are. It is crucial to know start early. When you know the due date, you can give yourself enough time to do what is necessary. You can get some massive fines or even go to jail for messing up when it comes to taxes.
Stay Organized
If you are not organized, you can be sure that you will lose your head. Being organized helps you do your work quickly without any hassle. Keep all your forms and make sure you fill them in with the necessary information. For those who are still employed, it is important to make sure that you are in possession of all the W-2 forms from all the employers. However, if you are an independent contractor, you will need to get a 1099 MISC form from each person you worked for. Keeping your forms organized is one of the best ways to ensure you get your taxes done correctly and on time. For more information about the w2 form www.thepaystubs.com, follow the link.
Look out for Any Penalties
When filing taxes, there are so many rules you will need to remember. One of the rules that you should pay attention to is that filing returns even though you pay no taxes is vital. You can end up paying a huge amount of money just because you did not file your returns. For you to avoid the financial stress that can come about as a result of the returns, you need to make sure that you have taken care of everything you need to take care of at the right time. However, you should not forget that you can ask for extensions when filing your returns. Most people do this when they are waiting to get some information that will assist them to file the taxes as needed. Explore more wisdom about w2 form https://www.huffingtonpost.com/2013/04/02/lost-w2-missing-new_n_3000274.html.
You can always ask for some assistance from a professional if you feel that filing taxes is a challenge for you.
Procedure for Filling out W2 Forms for Your Employees
Sort Your Employees into Categories
Your employees are grouped differently depending on a number of factors. 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 Relevant Information from Your Employees
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. You should also be furnished with the personnel names and addresses as well as social security data. Ensure that you collect this information before you begin the process so that the process will be as smooth as possible. Follow the link for more information about w2 form thepaystubs.com/w2-form-generator.
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.
Input the Relevant Details into Form W2
Use the personnel information obtained earlier to fill out the actual W2 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. Since each employee requires a single form, the more you have, the more the forms you will have to complete.
Forward the Filled out Forms
For your workers to file their own tax returns they need to have a copy of the completed W2 form. 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. Determine the best information about w2 form https://www.huffingtonpost.com/gobankingrates/2015-tax-law-changes-you-_b_6083108.html.
Filing Tax on W2 Forms
It is important that employees know that the amounts they file should match with the one on the W-2 form sent to the Internal Revenue Service as failure to match them can lead to suspicion for them. Every employee has three forms. One form is kept by the employer for purposes of record keeping, the other one is sent to the employee while the third one is sent by an employer to the Internal Revenue Service.
The deadline set by the Internal Revenue Service for employers to send to their employees the W-2 forms is the thirty first of January. All submissions should be done on or before February 29 as that is the deadline set by the Internal Revenue Service. There are six copies of the W-2 form. Written below is how the copies are broken down. To read more about the w2 form check it out!
Copy A is the first one and this copy is usually submitted by the employer to the Social Security Administration. The second copy is also known as Copy B is sent to the employee so that they can file federal income tax returns. The third copy, Copy C is also sent to the employee for purposes of own record keeping. Copy D, also the fourth copy is known as the employer's copy which they keep for record purposes. There's a fifth copy is known as Copy 1 which the employee files for purposes of state or local income tax returns if any. The sixth copy, Copy 2 is meant to be the employers copy so as to file for state or local income tax returns, if any.
To conclude, the process of filing for income tax returns should be done with caution by both employees and their employers. There can be serious consequences that may arise if either the employer or the employee fails to play their part right. All employees entitled to wages and salaries must fill the W-2 forms and submit as required to avoid getting penalized. Pick out the most interesting info about w2 form https://en.wikipedia.org/wiki/Form_W-2.
An Employer's Guide to the W-2 Form
The W-2 form is a compulsory thing to sign whenever an employer pays taxes on behalf of the employee. This is the form given by an employer to both the employee whose tax is remitted and the government. Details of the employees earning are given here. The company has to prepare a form for each of its employees. The employer, therefore, has to know all the information to include in the W-2 form.
The W-2 Form is divided into three major categories. The categories are all to be filled correctly by any employer as any mistakes may lead to penalties or payment of wrong amounts of taxes. The form requires one to provide information such as the employee and employer terms, earning and tax details and finally any crucial information. The employers task is reduced because there are standard forms available hence no need to make new ones. The forms are available for download and you can also get them from your tax agent. Find out more information about w2 form website.
Details of the employee and the employer as well as their relationship is included in the first section of the W-2 form. All the necessary information of the employee must be provided here. There are boxes allocated for all the information required for the employee. Some of the information to be supplied includes social security number of employee, the address of both the employer and employee, full names of the employee, employee work number as well as his payroll number. Correct filling of this section is crucial as it eliminates issues such as double taxation and duplication of forms.
The other step is filling of the financial details by the employer. This is the most important section of the W-2 form. Details of this section are the earnings made by the employee during the entire year. The employee's full payment details as paid every month should be included here. The employer includes details of the employee about wages such as how much tax they have remitted on behalf of the employee as well as the total earnings of the employee. The allowances the employee gets from the company are however not part of this information if they are not included in the employee's salary. The employer is then given a portion in the form to provide any extra information that may be necessary for the tax filing. Pick out the most interesting info about w2 form https://en.wikipedia.org/wiki/Form_W-2.
How to Prepare W-2 Forms
Consequently, before you generate a W-2 form, it is of paramount importance to determine whether your employee is a freelancer or a permanent worker in your enterprise so that you can protect your organization. However, if you do not know the status of your employees, make sure you visit the IRS website and complete an IRS form that will determine the worker's status.
As soon as you identify which category your worker belongs to, the other thing you ought to do is to visit the IRS website so that you can request for the W-2 form.Make sure you have the employee's payroll information. Some of the payslip details comprise the name of the worker, his or her ID number, location and the social security number. In addition to that, make sure you have the total income the employee earns and total taxes withheld which include the Social Security taxes, income taxes and Medicare taxes beforehand.
Apart from having the employees' details, you also need to have your employers' details at hand. Some of the information you are required to fill on the W-2 form comprises of the enterprise name and location in addition to the enterprise identification number which is given to you by the IRS so that they can recognize your enterprise for taxation reasons. Read more about w2 form.
With that in mind, the W-2 form is filled in six copies which you are supposed to give different people. The individuals who receive these forms include the SSA, State tax office, your worker and the organization itself.The copies are distributed as follow; Copy A goes to SSA, Copy 1 goes to the City tax unit, Copies B, C and two are given to the worker, and Copy D is for the business.
On the other hand, before you prepare the W-2 document, it is recommendable that you create a control number for every employee.This control number will help you in differentiating different employees as each employee has a unique control number when you are filling the six forms. You can opt to guess a control number and allocate it to any employee, or you can prepare it automatically.Whichever way you choose, make sure the control number has both letters and numbers. As such, you can have a control number like E1F3 to stand for one employee.
Remember that the W-2 requires you to fill all these facts in the correct spaces provided. So, ensure that you follow the instructions given. Moreover, make sure you use a legible black font when filling these forms.
After you fill the W-2 document, the next form you should fill is the W-3 form that confirms that the information you recorded on the W-2 form is correct. The W-3 is prepared and proffered to the SSA accompanied by the W-2.Form W-3 contains the same information as W-2, so it is not difficult to complete. Once you through filling these documents, the last thing you should do is to print out copies of W-2 and W-3 forms on the IRS site. Determine the best information about w2 form https://www.huffingtonpost.com/gobankingrates/2015-tax-law-changes-you-_b_6083108.html.
