STPS

Getting W-2’s Out Accurately and on Time

It’s the beginning of the year and you know what that means, required financial filing for your business and sending out employees’ W-2s. With the deadline coming up quickly, you need to make sure you get everything organized for your employees by January 31st. I know this can be a pain, but it’s something that needs to be done each year. That’s why in this article I will tell you what you need to do to make sure you get your W-2’s out accurately and on time.

What is the W-2?

Formally known as the IRS Wage and Tax Statement, the W-2‘s basically summarizes each employee’s tax information and earnings for that last calendar year. The W-2 form includes the information the employee will need to file their annual taxes. The information is also used by banks and landlords when verifying someone’s income. It is crucial to get all information correct on every W-2. Below are some tips that can help you avoid late submissions or W-2Cs. Getting the W-2s sent out before the deadline, January 31st, is best because some places need them submitted earlier than that date.

Verify information:

Make sure all your employee’s information is correct such as their address, Social Security Number (SSN), and name. Also, make sure all of the employer information is correct including the business address, employer name, and EIN. Making sure all of the important easy information is correct is crucial and will save you a lot of time later.

Along with the easy information, there is some payroll information such as special coding in box 12 that is placed on the W-2 form. Review each deduction and pay code within each appropriate box on the W-2.

Audit W-2 Data:

Before being finalized, review and audit the preliminary W-2 data reports. These reports can be used to point out any issues that should be addressed before the form finalization. Some issues would be negative wages or taxes, and proper classification of box 12 items. Auditing W-2 data can be done at any time during the year but doing it periodically will help avoid mistakes.

Outsourcing Payroll:

Amended W-2’s (W2-C) and late filings can result in penalties. Correcting forms can be time-consuming and a burden on the employer and the employee. If you outsource your payroll it could take a lot of this stress away. It would save you time and would eliminate all of the risks of penalties and corrections that might come up. This will help you be able to focus on your business. 

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Written by Tessa Braybrook

Tessa joined Superior Trucking Payroll Service in September 2022. She loves to write and make videos which made her a great asset to the team in her marketing position. 

Before working at Superior Trucking Payroll Service she worked in IT at GVSU which gave her the skills to problem-solve with customers over the phone. 

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