What is a W-2 Form?
The Internal Revenue Service (IRS) and each employee must receive a copy of Form W-2, commonly referred to as the Wage and Tax Statement, from the employer at the conclusion of the tax year. Employees’ annual salary and the amount of taxes deducted from their paychecks are listed on a W-2. If your employer withholds taxes from your paycheck stubs and reports this information to the government, you are a W-2 employee.
What is the Purpose of a W-2 Form?
The Wage and Tax Statement, or Form W-2, provides details regarding an employee’s yearly compensation. You must deliver a copy to the Social Security Administration (SSA) and your staff members. Other details like deferred compensation, benefits for dependent care, donations to a health savings account, and tip income may also be included.
You need to complete a Form W-2 if you paid an employee during the year. Regardless matter whether the employee works for one day or one year, you must still give them a W-2 form. Any employees you pay a salary, hourly wages, or other types of compensation to are legally required to receive W-2 forms.
How to Fill out a W-2 Form for an Employee?
On official copies of W-2 forms, print Form W-2. The IRS or a nearby office supply business both sell the paperwork. On the IRS website, you can read an example Form W-2, but you cannot print it.
Ask your payroll provider for electronic W-2 forms for employees if you utilise payroll software.
Make sure each employee’s name, address, and Social Security number are correct while completing the Form W-2. Make sure the EIN, address, and name of your company are accurate.
Make sure that all monetary amounts on Form W-2 are reported accurately. To separate dollars from cents, use a decimal point (for example, 1000.00).
Before mailing each Form W-2 to the SSA and your employees, make sure to thoroughly check it for inaccuracies.
You can complete Form W-2 more easily by using online payroll tax software.
Also, See: W-4 Form