How to Prepare W-2 Forms

Every employer is mandated by the Internal Revenue Service to file a W-2 form for their employees. On this form, the employer must fill how much money they paid an employee and how much money was withheld from each worker. Take a look at the information about the w2 form https://www.thepaystubs.com/w2-form-generator.

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.