The Internal Revenue Service mandates employees to file a Form W-2 to report wages paid to employees. Regardless of the business, you’re operating or the size of the business, you as an employer must file a W-2, Wage and Tax Statement Form for every employee that is working for you.
You can file Forms W-2 on paper or electronically but if you need to complete more than 250 of them, you must file electronically. While this is an IRS tax document, Form W-2 cannot be filed on the IRS website. Instead, you must use Social Security’s Business Services Online. For more information on how to file multiple Forms W-2 for employees electronically and the use of the Business Services Online, read this article.
Content of Form W-2
The Wage and Tax Statement Form includes everything your employees need to file their federal income tax returns. It shows the wage, salary, and other compensation as part of their employment paid to them along with the federal taxes withheld. Here is every box that you will need to fill out on Form W-2.
- Wage, salary and other compensation paid to the employee
- Total amount of federal tax withheld from the employee(s)’ income
- Social Security wages
- Social Security tax withheld
- Medicare wages
- Medicare tax withheld
- Social Security tips
- Allocated tips
- Dependent care benefits
- Nonqualified plans
- State wages and tips
- Total amount of state tax withheld from the employee(s)’ income
- Local income tax
- Locality name
Each and every box is on Form W-2 needs to be checked. If there is nothing to enter on any of the boxes, leave it as it is. Depending on where you file Forms W-2 electronically, you may input 0 on the boxes that don’t concern the employee.