Often when talking about forms, there is confusion among them. They are a huge amount with similar names, and although their functions are different, they revolve around the same tax topic. This being so , the confusion is not surprising with any form, even with the W-2 form.
In this article, we will talk about the W-2 form and the correct way to fill it out so that those looking for information about it do not have to suffer any more confusion when filling it out.
The W-2 form can and should be filled out only by the employer. The employee should only receive a few copies from the employee and can never fill it out or modify it themselves. However, it is important to note that workers and independent contractors must file another form.
This form is used to calculate Social Security and Medicare benefits based on the information provided on the form. Therefore, it is essential for the employee that their employer fills out the form with the most accurate data possible on wages paid and taxes withheld throughout the year.
The form is quite specific in terms of its completion. Therefore, to make the process more understandable, we will divide it into two parts according to the boxes that , although they belong to the form, have different categories.
You will find these boxes divided by letters; in the letter "a," you must enter the employee's Social Security Number, which you will see at the top. In letter "b", you must enter the personal identification number; meanwhile, in letter "c", your name as an employer must be documented, together with the employee's fiscal address.
In the letter "d", the control number must be entered, in "e" the employee's name, and finally, in "e", you must enter the employee's complete address.
Box 1 should enter the employee's total annual income, i.e., the salary and tips and all deductions. In box number 2, you must enter the federal taxes, in box number 3, the taxable income for Social Security, in box number 4, the Social Security taxes, in box number 5, the Medicare wages and tips, and in box number 6, the Medicare taxes.
Meanwhile, box number 7 should record the employee's tips and all income in box number 8. Box number 9 should be left blank, and box number 10 if the employee uses childcare expenses.
Box 11 must specify the amount of the non-qualified retirement plan; the amount must be in dollars. In box 12, it is necessary to enter the codes respective to the payments and additional benefits for the employee.
In box number 13, you must select each smaller box corresponding to whether the employee receives a third-party sick pay, whether they have a retirement plan and whether their function as an employee is fully legal. In box 14 is the opportunity to show the deductions not shown above.
In boxes 15 through 20, you must enter the following data respectively from 15 through 20: Your State Employer Identification Number, state wages, state income tax, income for local taxes and the name of the locality of those taxes.
Because it is required to calculate Medicare and Social Security benefits, must file the form with the Social Security Administration (SSA) and the employees. It can be mailed or sent electronically to the SSA by January 31.
To be received by the SSA and processed by the SSA , it must meet several requirements so that the scanner can read it clearly, and of course, the form must be valid. In total, you will have six copies. Must give the employee a to the SSA and B, C and 2.