On Services: My Thoughts Explained
This is How to Complete Form W2 for Your Workers
During the tax season, many people are usually in a hurry to file their tax returns in an endeavour to escape the penalties borne by those who fail to do this. 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. Amount of tax due, salaries the personnel are entitled to as well as any other deductions are some of the information provided on the W2 form. The forms should be filled for all employees earning more than US$ 600 per year. 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. You also need to consider the other benefits enjoyed by the employee such as insurance and tax reliefs, leave and sick pay.
Gather the Right Details From the Workers
After classification of your workers, the next step is to obtain all the relevant details from them. Employee salary scale, tax payable as well as other benefits and reliefs due to the employee are some of the details you need to have for each staff member. You should also be furnished with the personnel names and addresses as well as social security data. This process will be rendered faster and easier if you gather the data in advance.
Download the W2 and W3 Forms
You can access both the W2 and W3 forms for download at the Internal Revenue Service website. Form W3 is normally filled together with W2 and contains the employer’s information. Once you access the site and register your business, you can have the forms downloaded. 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. This should be done carefully so as to avoid making any mistakes that may end up costing you or your employee. 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. 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.
Comments are closed.