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. Form W2 is one of the forms to be completed by the business owner for their workers. It provides details of employees salaries, amount of tax payable and also any other money deducted from their pay. 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. Make yourself one of the luckiest person who learn about the w2 form.
Group Your Workers
A number of factors are taken into considerations when classifying your employees. 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
Once your workers have been appropriately categorized, you need to gather all the relevant information for the W2 forms. 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. Names and addresses, social security details are also required for the completion of these forms. This process will be rendered faster and easier if you gather the data in advance. If you are interested in w2 form , please click the link provided.
Look for the W2 and W3 Forms
Both W2 and W3 forms are available for download from 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. Another option is to have the forms filed online by accessing the social security website.
Fill out the W2 Forms with the Right Information
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. Since each employee requires a single form, the more you have, the more the forms you will have to complete. Pick out the most interesting info about w2 form https://en.wikipedia.org/wiki/Form_W-2.
Forward the Filled out Forms
After the preceding steps, you need to give out a copy of the filled out form to the respective employee to facilitate the filing of their tax returns. The other copy is then submitted to the state department of revenue. The copies are usually printed first in the correct format and then forwarded in hard copy.