Gearing Up For Tax Season For Employed W2 Workers
Tax season is here and for those of us filling out W2 forms, please remember that you have until the end of January to submit. For efficiency and accuracy’s sake, be sure to check out the IRS website to see any new changes in the laws for the current tax year. Here’s a brief step by step guide to help you fill out your W2 tax form.
What is the W2 Form?
This is a form that an employer distributes amongst their employees every year. The form shows a summary of all paid wages and the taxes being withheld. This is a mandatory legal document for preparing tax returns.
Gather all the necessary information
All the information you need will come from your payroll register. This will show you everything you need to know including the year-to-date totals of all your employees’ wages and withholding; the deductions on medical plans; and all other relevant information.
There will be boxes provided that need to be filled out. Simply fill out the information asked for and make sure everything is accurate. Here is the info you need to prepare:
Template W2 forms can be acquired from several sources. You can order them online from the IRS website or buy them in an office supply store.
Make sure you prepare multiple copies. You will be sending it out to many sources. It also doesn’t hurt to keep extra copies for yourself just in case. Once you have filled out the W2 form, take the time to double check all the information and ensure accuracy before making multiple copies.
Any late filings within 30 days past the due date will receive a penalty of $30 per form. Any later than the 30 days and the penalty doubles to $60 per form. For larger businesses, the penalty can reach as high as hundreds of dollars per form and goes even higher if submission is made past August 1.
Incorrect information on W2 forms can also lead to penalties. The penalty amount will depend on the size of the business but can reach thousands of dollars.