Every committed employer in a trade or business that pays remuneration, including non-monetary payments of $600 or more for the year for services rendered by an employee, must file a Form W-2 for each employee.
Form W-2 requires employers to report information on wages and salaries to the taxman.
It is crucial to complete it as it “reports important details about the amount of federal, state, and other taxes withheld from your pay as well as other employer benefits like health insurance, assistance with adoption and care of dependents, health savings account contributions and more.”
All employees must complete this form.
What does For, W-2 check?
-Income, Social Security, or Medicare tax was withheld.
-Income tax would have been withheld if:
a) The employee claimed only one source deduction.
b) Had not claimed exemption from withholding tax.
When should you file Form W-2?
The IRS sends the Form W-2 to your employer before January 31. However, not all forms arrive immediately.
You may receive the form days or weeks after January 31.
All employees must submit the form before tax season is over. If you miss the deadline, you need to follow the next steps.
“As an employer, you must file W-2 forms with the Social Security Administration (SSA) and the IRS by January 31, but you can file a 30 day extension by submitting Form 8809request for an extension of time to file information returns,” said Riley Adams.
“You will need to indicate that at least one of the criteria for granting an extension applies.”
What if I haven’t received my W-2?
The first step to take is to contact your employeer. Your employer will have the forms.
If they don’t have the form, your employer can provide you with a electronic version of the W-2 form.
If you made a mistake on the form, ask for another. A spelling mistake or incorrect data is enough to request an additional form.