Procedure for Filling out W2 Forms for Your Employees
It is the tax season when many people rush to have their tax returns filed in time to avoid penalties. It is a requirement that every business should file their tax returns at the close of every trading year, so as to be in the government’s good books. The internal revenue service (IRS) requires that every business person fills out form W2 for their employees. It provides details of employees salaries, amount of tax payable and also any other money deducted from their pay. The forms should be filled for all employees earning more than US$ 600 per year. The following are the steps to take to complete the W2 form.
Sort Your Employees into Categories
Depending on various considerations, different employees are put into different classes. Some of these factors are the amount of salary an employee is paid, their type of employment: whether full time or part-time basis, or whether they have been engaged as contractors to serve a certain purpose. Other factors include insurance and tax reprieves, sick and leave allowances.
Collect the Appropriate Employee Data
After classification of your workers, the next step is to obtain all …