W2 Form 2021
Wage and Tax Statement Form W2 is the IRS tax form that is designed for reporting wage, salary, and tips paid to employees and tax withheld from their income.
Form W2 is mandatory to file for all employers and it must be filed before January 31. Since employees rely on their employers to get this tax form, the sooner it’s filed, the better.
This is because the employees will use the W2 issued by the employer to file a federal income tax return. Form W2 consists of information that is enough to file the employee’s tax return if the only source of income is from employment.
There are two important figures on Form W2 that the employee will use to file a return. These are the income earned from the employment and the tax withheld. The employee will enter these figures on his or her federal income tax return. Since the employee will use it to file a return, it must be furnished by the employer in a timely fashion.
Online Filing Form W2
If you’re an employer and want to file Forms W2 online, there are a couple of ways to do this. You can either fill out Form W2 through the Social Security Administration’s Business Services Online (BSO) or file it through an e-file provider.
Either way is convenient enough but if you’re currently not paying to file taxes electronically, BSO is the way to go. Upon filing Form W2, you can furnish employees with an electronic or paper copy.
Paper Filing Form W2
This method of filing W2 can only be recommended if you have a handful of employees working for you. The paper filing Form W2 is pretty simple. Gather the information about the employee and enter it on Form W2 as it is. If you’re using accounting or business management software, you can get the required information to enter on W2 easily.
Print out paper Form W2 from the IRS website. Take note that unlike most other IRS tax forms, this cannot be filed online. You must print out a paper copy and enter the information that needs to be entered.
However, this sounds easy and all, you must file Forms W2 with the Social Security Administration anyway. Therefore, filing it on BSO and fulfilling this obligation while being able to print out the completed W2 of the employees is enough.