Now that we’ve all celebrated the New Year it’s time to get down to business and start looking ahead. We’re breaking down a W-2 tax form so you’re prepared and ready for tax season.
What is a W-2?
Simply put, a W-2 tax form is the amount of taxable income that has been withheld from employee paychecks over the course of the year. It’s what they use to file their federal and state taxes.
Who gets a W-2?
If you manage employees rather than independent contractors and freelancers, you will need to provide your employees with W-2 tax form.
When are W-2 Tax Forms Due?
The IRS requires you to send your employees their W-2 tax forms no later than January 31st. Think that sounds like plenty of time? Think again, getting everything in order and ready to be shared can be very time consuming and stressful if you wait until the last minute.
Employees get how many copies?
No you’re not doing it wrong. There are 4 copies of employee W-2 forms per page. The first copy is for their federal tax return. The second and third copies are for their state, city or local tax department. The final copy is for their personal records.
The key to avoiding a panic attack on January 28th?
Make sure you’ve verified your employees’ social security numbers. And don’t forget—even if you’ve parted ways with an employee by the end of the year, you’ll still need to send them a W-2 for the time you employed them.