Every year, business owners face the job of reporting wages for work preformed. Anyone who is a regular employee of the company and receives a regular paycheck must have their wages reported using a W-2 tax form. This is the most common type of wage reporting; it reports earnings and withholdings for each employee, and must be filed to the Social Security Administration (SSA) and, in some cases, the local state agency as well.
What information is reported on a W-2 form?
The IRS requires employers to report all income they pay, whether to employees or independent contractors. W-2 are the most commonly known form, used to report employee income, medicare and social security taxes, and any other applicable holdings for the calendar year. They should also report tips and any other compensation, including vacation allowances, bonuses, severance pay, moving expense payments, certain kinds of travel allowances, and certain kinds sick pay. It’s important to note that W-2 forms are different from 1099-MISC forms, which are used to report compensation paid to independent contractors, i.e. non-employees.
Filing W-2 forms requires creating multiple copies, which are filed to the SSA (and in some cases the state), kept by the employer, and send to the employee, or recipient.
To avoid paying penalties, employers must mail W-2 recipient copies by January 31st and must e-file W-2s to the SSA no later than March 31st (paper filing deadline is February 28th). State filing deadlines are different for each state.
Simplify filing small batches of W-2 forms
While large companies may have entire HR departments dedicated to handling this, or may even outsource payroll entirely, small businesses who manage their payroll in-house must face the annual task of preparing W-2 forms to report each of their employee’s income from that year. Most small business tax and accounting software programs don’t include options for preparing and e-filing W-2 forms. For small businesses, that means driving to the supply store, buying packages of forms, preparing, filing and mailing them manually.
WageFiling was created specifically for small businesses with just a handful of W-2 and 1099-MISC forms to file. Rather than buying forms and filing to the IRS, those tasked with reporting wages can simply enter the W-2 info online, then print recipient copies on plain paper or download as a PDF. We automatically e-file to the SSA and the state for you.
Whether it’s an owner or office manager who’s tasked with filing W-2 forms, WageFiling makes it simple to prepare, file and send forms in just minutes.