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How to Create W-2 Forms

The Internal Revenue Service requires every organization to submit a W-2 form on behalf of their workers. When creating this report, the employer must show the salaries and tax deductions received by each worker.

So, if you want to create a W-2 form, it is essential to know the status of your employee whether he or she is an independent contractor or is a permanent employee to keep your business out of trouble. However, if you do not know the status of your employees, make sure you visit the IRS website and complete an IRS form that will determine the worker’s status.

Once you know the worker’s status, the next step you need to do is to obtain the W-2 forms from the IRS site. Before you fill the W-2 document, it is vital to have your worker’s pay stub details.You should have your employees’ name, address, social security number and identification card number.More so, ensure you obtain the employee’s total income wages, Social Security wages, Medicare wages and any other tax deducted from the employee.

Similarly, ensure that you have your business information beforehand.This includes your business name and address as well as your business ID number which is assigned by the IRS that is used to identify your business for taxation purposes.

Once you have that information, the next thing you need to do is to fill the six forms attached to the W-2 form which you must submit to all the parties involved. By parties, I mean the SSA, City tax department, your worker and the business owner. The SSA gets Copy A, and the State tax department gets Copy 1, your employee gets Copies B, C and 2 and you must keep Copy D for your record.

On the other hand, before you prepare the W-2 document, it is recommendable that you create a control number for every employee.The control number enables you to keep track of each employee as you fill out the multiple W-2 forms since each employee’s control number is different. You can opt to guess a control number and allocate it to any employee, or you can prepare it automatically.Either way, ensure that the control number contains alphabets and figures. As such, you can have a control number like E1F3 to stand for one employee.

Do not forget to counter check where to fill the needed information on the W-2 forms.For that reason, make sure that you read the W-2 form carefully before you start filling it. What’s more, fill the W-2 form using a black font so that it can be readable.

As soon as you are done with W-2, it is vital to fill another form known as W-3 which backs up the W-2 form.The W-3 is prepared and proffered to the SSA accompanied by the W-2.The W-3 form is just a copy of the W-2 form, therefore; filling the W-3 document will be an easy task. Finally, visit the IRS website and obtain copies of the W-2 and W-3 forms.

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