Short Course on Forms – What You Should Know
Procedure for Filling out W2 Forms for Your Employees
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. 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. Form W2 is one of the forms to be completed by the business owner for their workers. 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. Here is what you need to do when filling the W2 forms.
Sort Your Employees into Categories
Depending on various considerations, different employees are put into different classes. 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. You may also need to look at any other benefits due to an employee like tax and insurance reliefs, vacations and sick leave 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. The information should be gathered beforehand to make it easier to fill the forms.
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. Alternatively, you can check out the social security website and fill out the forms online.
Fill out the W2 Forms with the Right Information
The form W2 obtained should then be completed with the relevant employee data. Ensure that you complete the forms as carefully as possible because mistakes made here could have serious consequences. 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
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. Another copy of the form is then sent to the state’s department of revenue. The forms are printed in the appropriate hardcopy format before being sent.