As a small business owner, you may be dreading the upcoming tax season; most people do. After all, taxes aren’t as exciting as, say, decluttering your garage, cleaning the bathroom, or organizing your desk! W-2 forms are an important part of your taxes, though, and they must be dealt with.
What is a W-2 form?
Each year, business owners must report wages for work performed. This means all employees who receive a regular paycheck from the company must have wages reported via a W-2 tax form. A W-2 is the most common type of wage reporting; it shows both earnings and withholdings for every employee. They must then be filed with the SSA or Social Security Administration; in some cases, they must also be reported to the local state agency. It’s important to note that the W-2 form is different from the 1099 form, which records income for independent contractors only (i.e. non-employees).
Information on a W-2 form
The IRS requires all employers to record income that they pay to both independent contractors and employees. The W-2 form includes a wealth of information, such as employee income, social security taxes, Medicare and other applicable holdings for the year January to December. A W-2 form should also contain other income sources such as tips, bonuses, vacation allowances, moving expense payments, severance pay, travel allowances and sick pay.
Filling out a W-2 form
Filling out the form requires the creation of multiple copies, which are then filed with the SSA. As a business owner, you’ll need to keep copies, and you’ll have to send a copy to each employee.
Penalties for late W-2 filings
As an employer, you are required to mail W-2 forms by January 31st. E-filing must be done no later than March 31; paper deadlines are February 28th. If filing to the state, dates can differ for each state. Missing these deadlines can result in fines for each W-2 not filed.
Simplify the process
As a small business, you probably don’t have an entire HR department to handle payroll or tax filing. As such, you must take on the responsibility of filling out the various tax forms yourself. You could purchase an accounting software program to do this for you, but most do not offer the option of e-filing W-2 forms. This means you will likely have to drive to a supply store, purchase the forms to fill out and mail manually.
Fortunately, there is a simpler option: Wage Filing. With Wage Filing, you can create an account, enter the information for each employee and e-file your forms in just minutes. There are no forms or software to download, and you don’t have to worry about mailing to the IRS – it’s all done for you. Simply log in, enter your info, check out and print the forms for your own records.
Wage Filing was created specifically for small businesses that don’t have the luxury of hiring full-time payroll or HR employees. As an entrepreneur, you understand the importance of getting things done in an efficient and timely manner; Wage Filing can help you with that during tax season.
Wage Filing can help you when it comes to filing your W-2 and 1099 forms. Visit the website today for more information about their range of services.