The Internal Revenue Service mandates every business owner to create a W-2 form for their staff members.When preparing this document, they must indicate the amount of money the worker received as well as the amount of money that was deducted from their wages. Make yourself one of the luckiest person who learn about the w2 form check it out!
For that reason, if you are preparing a W-2 form, it is crucial to know if the individual is a worker or an independent contractor so that you can safeguard your enterprise. 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.Ensure that you have your worker’s payslip details before you start filling the W-2 form. Some of the payslip details comprise the name of the worker, his or her ID number, location and the social security number. More so, ensure you obtain the employee’s total income wages, Social Security wages, Medicare wages and any other tax deducted from the employee. Be more curious about the information that we will give about w2 form.
Similarly, ensure that you have your business information beforehand.This includes your business name and address as well as your business ID number which is assigned by the IRS that is used to identify your business for taxation purposes.
As soon as you gather all these information, the IRS requires you to fill the six W-2 forms which are intended for various individuals.Here, the parties involved are the SSA, State tax unit, your employee and yourself. The SSA gets Copy A, and the State tax department gets Copy 1, your employee gets Copies B, C and 2 and you must keep Copy D for your record.
But before you fill these forms, make sure you generate a control number for your employee. This unique control number allows you to fill the W-2 forms in six parts easily as different employees have different control numbers.You can choose to create the control number manually, or you can generate it electronically. Either way, ensure that the control number contains alphabets and figures. As such, you can have a control number like E1F3 to stand for one employee. Pick out the most interesting info about w2 form https://en.wikipedia.org/wiki/Form_W-2.
Remember that the W-2 requires you to fill all these facts in the correct spaces provided. For that reason, make sure that you read the W-2 form carefully before you start filling it. Furthermore, for legibility purposes make sure you fill the form using a black pen.
As soon as you are done with W-2, it is vital to fill another form known as W-3 which backs up the W-2 form.You must submit the form W-3 together with W-2 to the SSA. The W-3 form is just a copy of the W-2 form, therefore; filling the W-3 document will be an easy task. Finally, visit the IRS website and obtain copies of the W-2 and W-3 forms.