The blank W2 form is crucial for every employer who pays taxes in the US. It is the most important tax form, but not every taxpayer knows how to complete it. Individuals don’t need to fill it out. If you want to fill out the W2 form for employees, here is your guide.
What Is a Form W-2?
If you are wondering what is a W2 form, you may still be new in the business. Employees require this form from their employers. This official report specifies the salary that was paid during the year to the employee. The number includes the amount of state and federal income, Medicare, and Social Security taxes that were already withheld. You have to provide 6 copies of the same form to the SSA, employee, employer, and tax departments. An employee can use it in other tax forms. Self-employed people and independent contractors need a 1099 form instead of a W2 tax form.
Difference Between Forms W-2 and W-4
Many people still confuse one form for another. They are both about tax withholding and are necessary to the IRS. Before filling out the W2 form 2022, you have to learn the difference from W4. Employees fill the latter at the time when they are just hired. Employers will use this form to calculate the tax amount to withhold from employees. Meanwhile, W2 is filled by the employer and sent to the IRS and employees.
Who Files IRS Form W-2?
The employer must file the IRS W2 form, which must be sent to every employee if the employer withheld Social Security, Medicare, and income taxes. It is a legal obligation of every employer if they pay employees wages, salaries, or other compensation. Every employee must be calculated separately and receive a unique form.
The form must be sent to each employee before January 31 every year. It will provide employees enough time to include the form’s information in other tax reports. The deadline for the latter papers is always April 15. Apart from that, employers must use Federal Insurance Contribution Act taxes forms. The document is filed to the Social Security Administration with the form W-3, and SSA will calculate possible benefits for each employee using the document. This form reveals the taxes filed for the last year, as usual.
How to Fill Out the W-2 Tax Form?
Read these detailed W-2 instructions and make sure you don’t make mistakes in the form. If you are an employee, you have to check this form before you pick the data from it and use the numbers in your tax reports. If your employer made a mistake, you need to report it. The form is one page long, but you have to fill it in several copies. There are detailed instructions from the IRS you may want to read in advance. Follow the next steps:
- Include the employee’s SSN;
- Write down the employer’s EIN, name, address, and ZIP code;
- Box d requires a Control number;
- Indicate employee’s name and last name in box e;
- Box f is for the employee’s address;
- Box 1 is for wages and tips that were provided;
- Box 2 is for federal tax withheld;
- Box 3 is for social security wages, while Box 4 is for social security taxes that were withheld;
- Boxes 5 and 6 for Medicare wages and withheld taxes;
- Boxes 7 and 8 for tips from social security and allocated tips;
- Box 9 is left empty;
- Box 10 for the care benefits of a dependent, if any;
- Box 11 is for the nonqualified plans;
- Boxes 12a, 12b, 12c, and 12d for elective deferrals and Roth contributions limited to the $20,500;
- Put the tick in the right box in box 13;
- Box 14 is for other information you want to include;
- Box 15 is for the Employer’s ID number;
- Box 16 is for the state wages, while box 17 is for the state income taxes;
- Boxes 18 and 18 for the local wages and income tax;
- Box 20 is for the locality name.
How to File Form W-2?
You can use the printable W-2 form and mail it once you complete it to every employee. You still need to send it to the IRS and SSA; it is easier to use the online form and fill it out there. The PDFLiner offers such a service, or you can search for the form on the IRS website. Usually, the form is sent automatically every year before the deadline of the tax reporting period. Later, employees have to include this information in the tax report form 1040. The online option is simpler not only since it takes less time to fill it but also because it does not take too much time to send it and for employees to receive it.
Every employer must fill out this form for every employee. It contains the amount of taxes withheld during the year and is the crucial document required by the IRS. The form must be sent in several copies to different official bodies.