A W-2 tax form is a statement prepared by the employers for their employees. This form includes details about an employee’s total earnings, Medicare earnings, Social Security earnings, and federal and state taxes that are withheld by the employee.
Before you give the W-2 tax form to your employee, you should know about these important details of W-2 tax forms.
Different parts of the W-2 tax forms
W-2 tax forms contain numerous parts. Here is a brief overview of different parts of the W-2 tax form.
- Copy A is the part that goes to the Social Security Administration (SSA). This part is printed on a red form that can be scanned using a laser scanner. In case you are filing a paper copy of the return, you must only use the paper provided by the SSA.
- Copy 1 is for the locality, state, and city
- Copy B part is for filing the federal tax return of the employee
- Copy C states the records of the employee
- Copy 2 is another copy for the locality, state, and city
- Copy D is for the record of the employer
Where can I find W-2 tax forms?
One cannot copy the W-2 tax form from the Internet. As mentioned earlier, the Copy A of tax forms is printed on a special type of paper that can be scanned using a laser scanner, which cannot be found on any website. Only official forms must be used here. You can talk to your tax preparer and get your official W-2 tax forms.
What information is required to be completed in W-2 tax forms?
Information about your business – This will include your business name, business address, employer ID number, and business State Tax ID number.
Information about your employees – You need to mention the Social Security Number or other tax identification number of your employee, the name and address of your employee, and the like.
Information about employee income – The information about total wages and withholdings of each employee for the last year has to be reported. Total Medicare wages, Social Security tips, total Social Security wages, total wages, and other compensation.
Apart from these, you also need to state information on retirement plans and special benefits. Box 12 and 13 of W-2 tax forms talk about retirement plans and employee benefits plans respectively.
What if there are errors made on a W-2 form?
It is recommended to check for common mistakes in tax forms before you send them off to your employees. However, if you have submitted incorrect forms to Social Security Administration, then you must fill and complete W-2c forms. Ensure that you do not miss out on the final deadline for submitting the revised information along with the W-3 transmittal form, which needs to be resubmitted.