It is the tax season when many people rush to have their tax returns filed in time to avoid penalties. 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 internal revenue service (IRS) requires that every business person fills out form W2 for their employees. 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. The following are the steps to take to complete the W2 form. Visit the official site for more information about w2 form click here to get started
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