Tax forms are one of the most complicated documents to fill out. The IRS provides a variety of tax forms that must be completed based on an employee's income and payroll, such as the IRS Form W-2. If you pay your employees more than $600.00 in one year, then you are required to submit an IRS Form W-2 for your employees, Social Security Administration (SSA) and the IRS.
The IRS Form W-2, also known as Wage and Tax Statement, contains information regarding an employee's earnings from the previous year and how much tax was withheld from their salary. After the employer has completed the W-2 form, the copy of this document must be sent to each employee each year before the end of January each year. If the employer fails to distribute IRS W-2 Forms to his employees and submit them SSA and IRS on time, the employer may face fines and penalties.
If your employees receive more than $600.00 each year, you will likely have to submit this form every year. It is better to fill out your tax forms and save them for handy access in the future using PDF Reader Pro. PDF Reader Pro makes it very easy to fill out your tax forms with powerful tools and yet easy-to-understand interface allowing you to fill your tax forms within minutes. It is available for any type of device starting from Mac, Windows, iOS, and Android. This article will help you on how to fill out Form W-2 from these aspects:
What is a Form W-2 Used For?
By law, employers are required to send a W-2 form to every employee to whom they provide a salary, wages, or other form of compensation. Employers must send W-2 forms to their employees by January 31 each year, so that employees have sufficient time to file their income taxes with the Social Security Administration (SSA).
Form W-2 is used to report Federal Insurance Contributions Act (FICA) taxes for their employees. The employer submits for the previous year at the end of January each year, a copy of W-2 form to the SSA with the transmittal W-3 form by mail or electronically. The SSA will use the information on the form to calculate the Social Security benefits to which each worker is entitled. Tax documents filed for the previous year. For example, if you receive a W-2 form in January 2023, it reflects your income for 2022.
Why Do I Need to Fill Out Form W-2?
You must fill out a W-2 form and submit it to your employer, so that your income and taxes withheld over the past year can be reported to the IRS. Your information confirms to the IRS whether you are paying the correct amount of tax.
For contractors or independent freelancers, you DO NOT need the W-2 form. Instead, you need to fill out a W-9 form. Click here to learn more about How to fill out Form W-9?
How to Download Form W-2?
If you are required to complete a W-2 form, you will likely receive a copy from your employer. If you don't get the copy of the form, don't worry because PDF Reader Pro provides the latest version of W-2 form here. You can download and fill out the form online on any device you have. Or you can directly download the W-2 form from the IRS official website here.
What Are the Components of Form W-2?
Form W-2 has four parts , each with their own sub-sections. Below are things that you need to pay attention to when filling out a W-2 form.
Part 1. Verify your personal information
The first part of the W-2 form contains your personal information. This section covers sections A-F. When you fill out the W-2 form, make sure this section is filled in correctly and completely.
The following are the subsections of the first section:
Section A: This section is filled in with your Social Security number so the IRS can identify you.
Section B: Employer identification number or EIN.
Section C: Employer's name and complete mailing address.
Section D: This section contains an employer-given code to identify each employee's form.
Section E: Employee’s full legal name.
Section F: Employee's full mailing address.
Part 2. Review tax and payroll information
After personal information, the next sections detail your wages and taxable wages from section one to section six. You should review this section repeatedly to ensure that your salary information is correct. The following is a further explanation of this section:
Section 1: Total amount of taxable income, tips and taxable wages received by the employee from the employer in the last one year.
Section 2: Total federal income tax that the employer withholds from the employee's salary.
Section 3:Income paid to employees who may be subject to Social Security taxes.
Section 4: Amount of Social Security tax deposited on the employee's income that the employee reports to the employer.
Section 5: All compensation reported to the employer where the employee paid Medicare taxes.
Section 6: Total Medicare tax deducted from the employee's prior year's salary.
Part 3. Assess additional income information
This section is filled with some additional revenue details. For example, if you work in a restaurant and earn tips, your employer might include tips in section 7. You can leave this section blank if you don't collect tips at work.
Section eight aims at more specific cases, such as if you work for a company that collects tips from every employee. Employers will list how many specific tips they give their employees.
Part 4. Check the miscellaneous information
The last section of the W-2 form is generally left blank. If you feel that this section is required, then read and complete it thoroughly to verify that the details are correct.
Section 9: Contains codes for employers if they participate in the IRS pilot program. This section can be left blank if you are not participating in the program.
Section 10: Total employee health benefits. If the employee doesn't have one, the employer leaves the box empty.
Section 11: Contains the amount paid by the employer from a deferred compensation plan that does not qualify. In this way, the Social Security Administration can ensure that the employer distributes the correct amount of benefits.
Section 12: This section includes a set of codes that employers itemize to the IRS.
Section 13: Includes checkboxes that contain information about third-party retirement plans and sick pay.
Section 14: This section is for reporting miscellaneous items that do not appear to be included in the other sections of the form.
How to Fill Out Form W-2?
With PDF Reader Pro, you can fill out a W-2 form easily within minutes. Here are some simple steps to achieve that.
Download PDF Reader Pro and launch it;
Open your W-2 form in PDF Reader Pro;
Save the complete form on your device for future use;
Print out the form and submit it electronically or by mail to the Social Security Administration.
Or click here to fill out the form online.
PDF Reader Pro is the best PDF editor with many powerful features. Filling out the form with PDF Reader Pro is like a piece of cake. You can choose whether you want to fill the form online here or download and fill it offline with PDF Reader Pro. As the tax season approaches, make sure you download PDF Reader Pro for better organization of your files. By using PDF Reader Pro, you can edit your forms anytime or anywhere you like. Once again, make sure you provide accurate information on your W-2 form. DOWNLOAD PDF Reader Pro now and experience its spectacular features. If you have any questions, feel free to reach us at [email protected].