Businesses are mandated to file both their income tax returns and their information returns to avoid costly penalties later on. Businesses use the W-2 Form to disclose information on the wages paid to the employees in the previous calendar year. This Form can also be used to disclose other information such as, withholding of wages, deduction from wages, and information on benefits for the employees.
Last date to file the W-2 form
The W-2 Forms are due by January 31st for the previous calendar year. If January 31st falls on a weekend or holiday, the due date will be the next working day. The Forms should be distributed to the employees and also to the Social Security Administration along with the transmittal Form W-3.
Useful Tips to Get Ready for Filing W-2 Form
Before filling out the various boxes in the form, make sure that you are using the right Form, dated for the tax year, and collect all relevant details for an easy and hassle-free filing process. The copies of the Form should be distributed to the,
- Social Security Administration
- To the Employee for their federal tax return
- Employee’s records
- Employer’s records.
- Gather all relevant Information:
It is mandatory to disclose information about the business, including the company name, address, and employer ID number. View the payroll details of all employees to get a clear picture of the wages and withholding along with details on medical plans, health savings account, and other relevant items. Gather some basic information about the company such as
- The employer ID number
- The state tax identification number
- Name, address, and social security number of the employee
- The amount to be paid to the employee, including wages, tips, and other compensation.
- Details about social security wages, Medicare wages, and Medicare tax withheld.
- Tips paid for the allocated employees
- Benefits paid towards dependent care.
- Local income tax withheld and local wages and tips paid.
- Determining the Best Way to File the W-2 Form:
The next tip is to delineate the best way to file the W-2 Form. You can choose to either mail the W-2 Forms to the employees or file them online. If you choose to print and mail them, then you can download the form from the IRS website, from your payroll service provider, or an office supply store. For online filing, the business should have more than 250 W-2 Forms to file and it has to be filed with the Social Security Administration.
- Review the Process Before Filing:
It is a good idea to review the entire process of completing, distributing, and filing the form well before the due date. To minimize issues with the Form, check them thoroughly for errors. Do not fail to include any information and put the right information in the right box to avoid penalties.
The IRS requires businesses to correctly classify workers as employees or as independent contractors, to avoid penalties. It is important to distribute the forms and file them with the SSA before the deadline.