How to Generate W-2 Forms
The Internal Revenue Service requires every organization to submit a W-2 form on behalf of their workers. When preparing this document, they must indicate the amount of money the worker received as well as the amount of money that was deducted from their wages.
So, if you want to create a W-2 form, it is essential to know the status of your employee whether he or she is an independent contractor or is a permanent employee to keep your business out of trouble. Nonetheless, if you are unsure whether your worker is an employee or a freelancer, you do not have to worry as the IRS site will guide you in determining the worker’s status once you fill an IRS form.
As soon as you identify which category your worker belongs to, the other thing you ought to do is to visit the IRS website so that you can request for the W-2 form.Make sure you have the employee’s payroll information. Some of the payslip details comprise the name of the worker, his or her ID number, location and the social security number. More so, ensure you obtain the employee’s total income wages, Social Security wages, Medicare wages and any other tax deducted from the employee.
Similarly, ensure that you have your business information beforehand.You must disclose your organization name and whereabouts as well as your business ID number that is provided to you by the IRS so that they can monitor how much tax your business pays.
As soon as you gather all these information, the IRS requires you to fill the six W-2 forms which are intended for various individuals.By parties, I mean the SSA, City tax department, your worker and the business owner. The SSA gets Copy A, and the State tax department gets Copy 1, your employee gets Copies B, C and 2 and you must keep Copy D for your record.
On the other hand, before you prepare the W-2 document, it is recommendable that you create a control number for every employee.The control number enables you to keep track of each employee as you fill out the multiple W-2 forms since each employee’s control number is different. You can choose to create the control number manually, or you can generate it electronically. In any case, be sure to include scripts and symbols in your control numbers.For instance, you can decide to use A1B2 for employee number 1.
Keep in mind this information is filled in the boxes provided on the W-2 forms. So, ensure that you follow the instructions given. What’s more, fill the W-2 form using a black font so that it can be readable.
Once you are through with filling the W-2 form, you need to fill Form W-3 which supports the information on the W-2 form. W-2 forms and W-3 forms are supposed to be presented at the same time to the SSA. The W-3 form is just a copy of the W-2 form, therefore; filling the W-3 document will be an easy task. Once you through filling these documents, the last thing you should do is to print out copies of W-2 and W-3 forms on the IRS site.