What Is Irs W-2?
W-2s for Social Security Tax Return
If you are an employee, you should only get a W-2. If you are an independent contractor self-employed, you will receive an earnings statement on a Form 1099, which is different from a W-2. The W-2 form has boxes that report various items.
You can find your wage and salary payments in box 1 of the W-2 and the amount of federal tax that is not being taken from it in box 2. Box 3 may report an amount that is less than your total wages for the year, since only a portion of your income is subject to the Social Security tax. If applicable, you can include your wages subject to Medicare tax, Social Security taxes that are not paid and information your state income tax withholding on the W-2 form.
The W-2 has a tracking feature. The IRS will want to know why the income you report on your taxes does not match the information your W-2. The IRS will match the reported payment amounts with your employer's tax return for accuracy.
When you are done with your tax returns and ready to file, you should always have a copy of your W-2 attached. If you use the e-file service, your W-2 information is sent with your tax return. If you are filing your tax return by mail, you need to put a copy on the front of it.
The EOR-Based Employer Employment Relations (EOR) Website
If you are an employer using record services to hire workers for you, you won't need to submit forms as the EOR will do it for you. The mailing instructions for the Social Security Administration website can be found on the site. If the forms have to be corrected, the forms should be sent to a different address. You will need to understand the information in each box if you want to fill out the W-2 or double-check the one your employer has already filled out.
W-4 Forms for New Employers
Form W-4 is considered part of new hire paperwork. Employers are responsible for having new hires fill out a W-4 form and submit to the appropriate state directory of new hires. You can find the correct directory for your state here.
Employers who need to file 250 or more W-2 forms in a year are required to file online. The maximum threshold will be less in 2021. The maximum number of forms will be reduced to 10 or more in the year 2022.
Form W-2 is usually completed by paper
Form W-2 is usually completed by paper. Tax compliance software can be used to complete the form electronically. The IRS website has a form W-2 that can be ordered.
Getting the Job done with W-4
withholding will be reduced throughout the year if an employee claims their allowance on their W-4. An employee can request more money be taken out of their paycheck. When taxes are filed, the goal for employees is to avoid a tax bill or large refund, both of which can indicate that your tax payments during the year were off the mark.
Checking in with an HR department can help make sure nothing happens. When the time comes, having paperwork ready and available can make filing taxes easy. If you work with a tax prep professional, you can maximize your time by having your paperwork ready and considering any questions.
W2s Due by January 31
Employers are required to submit their W2s by January 31. The W2 form should be sent to employees by January 31. You will be subject to penalties if you fail to file W-2 with the SSA.