When the tax season arrives, employers are usually expected to file tax returns of their employees. There is no room for mistakes when it comes to filing tax returns as it can lead to severe legal penalties. If you want to ensure that everything is done the right way, you should not hesitate to contact the tax professionals. The key to filing the tax returns properly is understanding the different forms that you will be required to fill. One of the forms that you will be required to fill that will help in filing the returns is W-2 forms. In this article, you will get to learn some of the tips for filling the W-2 forms.
It is a requirement for businesses to deduct a portion of the employee’s income every month as federal and state tax. The right forms that you should use to fill information about the employee income deduction are W-2 forms. After that, you will be required to take the forms to the Internal Revenue Service when the tax season arrives. The employee is also entitled to a copy of the W-2 forms for future reference. When the tax season comes, you will attach two copies of the forms in the employee’s federal and state tax returns. You should know that W-2 forms contain several boxes which will be discussed below.
The first category of boxes is A to F. Boxes A to F is usually meant for information regarding the employee and the business. In the employee’s section, you will provide the full name, social security number, and the employer tax identification number. In the category that requires business information, you should write the physical address and your employee’s current address. In boxes 1 to 6, you will be required to fill information regarding the income withheld for tax purposes.
Next, in W-2 forms, you will find boxes 7 to 10. If you employee receives tips, this is the right section to fill the information. After that, you will proceed to boxes 11 to 12. Here, you will be expected to provide information relating to the benefits and compensation that your employee might have received.
W-2 forms also contains boxes 13 to 14. Here, you will be expected to declare if the employee is a statutory employee. By being a statutory employee means that he or she is subject to both Medicare and Social Security taxes and not income tax. If you have information relating to state tax, you should include in the form in boxes 15 to 20. Therefore, with the information contained in this article, you will not face any challenges filling W-2 forms.