Form W-2 is also referred to as the Wage and Tax Statement. It is a document that is required to be sent by the employer to each employee and the Internal Revenue Service (IRS) at the end of the year. The W2 online filing document reports employees’ annual wages and the amount of taxes withheld from their salary. A W-2 employee can be defined as someone whose employer deducts taxes from their salary and submits the same information to the government. This article guides you through all the forms of W-2 wage and tax statements.
Who is responsible for filing form W-2 wage and tax statements?
An employer is responsible for sending out the W-2 form to each employee to whom a salary, wage, or another form of compensation is paid by them. When talking about employees, contracted or self-employed workers are not included in the category as they file taxes on different forms. The employer needs to send the W-2 form on or before January 31st of each year so that employees have sufficient time to file income taxes before the deadline.
Also, employers are required to use W-2 forms to report the FICA (Federal Insurance Contributions Act) taxes of their employees for the entire year. The W2 online filing for the previous year is to be done by the employer by the end of January with the Social Security Administration (SSA).
How is the W2 wage and tax statement filed?
If an individual is an employee of a company and is eligible to receive a W-2 for his income taxes, it will be sent to him automatically by his employer each year. Also, employers are required to report the taxes of their employees by W2 online filing with the IRS.
When preparing for income taxes, an individual will need to input the data found on their W-2 form into a form 1040 individual tax return, either electronically or by hand.
What information is included in the form of W2 wage and tax settlement?
Every form of W2 has the same field, no matter who is the employer. Now that employees are required to file taxes on both state and federal levels, W-2 forms are divided into both sections. A company’s employer identification number (EIN) (federal) and the employer’s state ID number are some fields that provide information about the employer. The remaining fields provide details mostly about employees’ income from the previous year.
The information recorded in this form is basically about an employee’s total earnings from the employer for a particular year, the amount withheld in taxes from the employee’s salary, separated into withholding for social security tax, federal income tax, and more.
Conclusion
W-2 includes both numbered and lettered boxes that are to be filled out by the employer and reflects how much an employee has earned in a given year and the taxes withheld by him. Both employers and the internal revenue service (IRS) use form W-2. While the former uses W-2 to report FICA taxes on employees, the latter uses it to track a person’s tax obligations.
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