The year-end and new yr are crammed with payroll obligations—like submitting and distributing Kinds W-2 to your crew. However first, it is advisable to know how you can generate a W-2 kind to your staff.
Producing W-2s doesn’t should be sophisticated, particularly with instruments like payroll software program. Discover ways to create W-2s for small enterprise under.
What’s a W-2 kind?
Kind W-2, Wage and Tax Assertion, is an data return that reviews your staff’ wages and taxes. It’s essential to full a W-2 kind for every worker you paid in the course of the yr. Don’t use Kind W-2 to report funds to unbiased contractors.
Ship Kind W-3, Transmittal of Wage and Tax Statements, with Kinds W-2.
It’s essential to file W-2s electronically when you have 10 or extra data returns, together with different kinds like Kind 1099-NEC. You may ship paper kinds when you have lower than 10 complete returns.
Kind W-2 is due by January 31. Ship copies to the Social Safety Administration (SSA); the state, metropolis, or native tax division (if relevant); and your worker. Make a copy for what you are promoting data.
Do employers want to supply W-2 kinds?
Sure, employers should full and file W-2 kinds for every worker.
The deadline for giving staff W-2s is January 31. Workers can’t file their revenue tax returns with out a W-2.
What data do I must create a W-2?
You want entry to your payroll data to generate W-2 kinds. Needed data consists of:
- Taxable wages
- Taxes withheld
- Advantages data
It’s essential to additionally enter enterprise identification data (e.g., Employer Identification Quantity) and worker identification data (e.g., Social Safety quantity).
How do staff use W-2s?
Workers use W-2 kinds to file their revenue tax returns (i.e., Kind 1040).
W-2 kinds inform staff how a lot they earned, taxes withheld, and advantages acquired in the course of the calendar yr.
Earlier than producing W-2 kinds…
W-2 kind errors occur. However, it’s greatest to keep away from them and the additional headache that comes with making a Kind W-2 correction.
Earlier than producing W-2 kinds, confirm your payroll data are correct and error-free. Evaluation:
- Complete wages paid
- Taxes withheld
- Deductions and profit data
Can I generate my very own W-2?
Workers don’t create Kinds W-2.
You may create W-2 kinds to your staff by utilizing payroll software program or manually filling within the kind.
Are you able to manually create a W-2?
Sure, you may manually create a W-2 in the event you don’t use payroll software program. You may acquire official W-2 kinds from the IRS or a licensed provider.
When submitting W-2 kinds with the Social Safety Administration, you should use the fill-in model.
Are handwritten W-2 kinds authorized?
The IRS discourages employers from finishing entries by hand, in script, or in italic fonts. Kind W-2 entries utilizing black ink and 12-point Courier font to make sure the shape is machine-readable.
Can I print an worker W-2 on plain paper?
Sure, you may print W-2 kinds on normal plain paper (8.5” X 11”). Don’t print W-2s on double-sided paper.
The IRS requires that paper Kinds W-2 be machine-readable, so be sure you use black ink.
Keep in mind that the IRS requires you to file Kinds W-2 electronically when you have 10 or extra data returns. This digital submitting threshold consists of W-2 and 1099 kinds.
How one can generate a W-2
“How do I make a W-2 for my staff?” You’ve come to the appropriate place in the event you’re asking this query.
You may create W-2s for workers mechanically (utilizing payroll software program) or manually.
1. Use payroll software program (computerized)
Payroll software program sometimes generates W-2s to your staff utilizing the payroll information you enter in the course of the yr.
Full-service payroll providers file the kinds with authorities businesses (SSA and state). Usually, your solely duty is posting the kinds in your staff’ on-line portals (with consent) or mailing them to staff.
The advantages of utilizing payroll software program embody:
- A straightforward approach to pay staff all year long
- Automated W-2 kind technology
- Arms-free submitting with full-service payroll
- The flexibility to assessment all data earlier than producing W-2s
2. Fill out a paper or digital kind (guide)
Don’t wish to use payroll software program? You may manually full W-2 kinds utilizing your payroll data.
Order official W-2 kinds from the IRS or a licensed provider, or create fill-in variations with the SSA.
Fastidiously enter the knowledge out of your payroll data. Double-check your work to keep away from information entry errors.
Whenever you’re executed filling out a paper or digital kind, file it with the SSA and state authorities businesses. Then, distribute them to your staff.
How one can create W-2 kinds with payroll software program
Log in to your payroll software program account to create W-2 kinds. Your software program ought to generate W-2s based mostly on the knowledge you entered into the system in the course of the yr.
Observe your software program’s particular directions to generate W-2 kinds. Usually, you are able to do this in a couple of clicks.
Generate W-2s with Patriot’s payroll software program
Simply and mechanically generate your worker W-2 kinds with Patriot’s award-winning payroll software program.
Patriot Payroll™ generates W-2 kinds utilizing your payroll data. You may preview W-2 kinds earlier than submitting to assessment particulars and guarantee all data is correct.
Full Service payroll software program customers take pleasure in computerized submitting with the SSA and any state authorities businesses.
You may both put up W-2s to your staff’ portals (if staff have given consent) or print kinds to mail to staff.
Streamline your year-end duties—and your obligations in the course of the yr—with Patriot’s on-line payroll. Run limitless payrolls, pay staff with free direct deposit, generate W-2s, and a lot extra. Get your free trial now!
This isn’t meant as authorized recommendation; for extra data, please click on right here.