When you run your own company, it’s important to handle your financial obligations and clerical work. In this regard, you’ll need to learn how to properly fill out a W2 form for all your employees.
The W2 form is the paperwork that shows your employees how much they earned in the year, how much was withheld and other information.
To make sure it’s handled correctly, follow the points below.
Double and Triple Check all Your Employee’s Information
If you’re trying to get the best from your W-2 form, make sure that you fill out all your employee’s information accurately. Start by making sure that you use the correct Social Security Number (SSN) or Employee Identification Number (EIN).
Before sending W-2s out, run all the information you have on file by your employees and have them verify it. That way, you’ll know that you have the correct name spellings, address, phone number, and other information.
Getting this part right will make the rest of the process so much easier.
Use a Form Generator or Software Platform
When you want to be sure that you’re filling out your W-2’s quickly and efficiently, use a form generator or software platform that works for you. This is great for your records and to make sure that you produce the forms in a timely manner.
You can use a platform like ThePayStubs to help you put together the most accurate forms possible.
There are also full-fledged tax and accounting software that you can use to have these forms filled out and ready to go well in advance.
Get the W-2s out in a Timely Manner
Since the Federal tax deadline is April 15, you need to do all you can to get your employees their W-2 forms as early in the process as possible.
This is a matter of recordkeeping that will let your employees handle their business on time, allowing them to satisfy their tax obligations. You can also issue them a digital W-2 just to make sure that you aren’t dealing with any setbacks with mail or other factors.
Keep Copies For Yourself
Above all, make sure that you also have copies on file for yourself. Your company will need to maintain accurate records in case there are any discrepancies.
Be sure that you have accountants on staff that can compile these records on a year to year basis so that you always have an archive of tax information.
Have Human Resources Professionals Available for Further Assistance