what to do if w2s have different addresses
Many of us associate January with writing New Year's resolutions and joining gyms. The showtime calendar month of the year is likewise big for bookkeeping, in office because it's when many annual tax forms, including Grade W-ii, are due.
Form W-2 details an employee'southward earnings and tax withholdings for the previous calendar twelvemonth. Your concern must distribute Form West-2 to employees by the federal deadline: Jan. 31, or the next business organisation day if it falls on a vacation or weekend, equally is the instance in 2021.
Employees apply Form W-2 when filing their private income taxes. It besides won't hurt to have the forms at your side to approve payroll costs when doing your business taxes.
The 3 ways to send W-2 forms to your employees:
- In person
- Electronically
- Through the mail
Your employees aren't the only ones who look copies of Form W-2. The Social Security Administration (SSA) and most states require that you submit Grade W-2 by the same date. Check with the tax regime in states where yous take employees for more information on deadlines and other filing requirements.
There'southward no shortage of vendors to aid you generate Form Due west-2. Payroll software, revenue enhancement software, accounting firms, and other online tools exist to assistance y'all produce, file, and share Forms W-2.
You'll receive six marked Westward-2s for every employee. You're required to send copies B, C, and 2 to employees, while the remaining iii become to the SSA, your state or local regime, and your filing chiffonier.
Employees receive copies B, C, and 2 of their Grade Westward-2. Source: irs.gov.
Don't create Forms W-2 for independent contractors. Instead, issue a Form 1099-NEC for each contractor to whom you pay $600 or more in ane year.
Hither's some more detail on how to send employees their Forms W-2.
1. In person
If all of your employees work in a central part, information technology might be about convenient to share Forms W-2 by handing them out at piece of work.
Your Due west-ii provider — whether information technology's tax software, an accounting business firm, or you — tin generate and postal service the forms to your office. Printing Westward-2 forms for employees with your office printer is also an pick. The employee copy of the W-ii doesn't need to be printed with special paper or ink similar the IRS version.
From there, put each grade in its own envelope and distribute it to each employee. Utilise privacy envelopes to protect sensitive information from prying eyes.
Make sure all your employees know when Forms Due west-2 are ready. As a business concern owner, you're responsible for ensuring all employees receive their Forms W-ii by the IRS deadline.
two. Electronically
Businesses with remote workforces can transport out their Forms West-two electronically.
You'll demand consent from each employee to receive their Forms West-two digitally, but information technology's unlikely you'll run into too many issues. Nosotros alive in an historic period where 90% of taxpayers e-file their taxes, co-ordinate to the IRS, and having a digital copy makes the e-filing procedure easier.
You have two options for sharing W-2s electronically: via email or an employee self-service (ESS) portal.
Most SaaS payroll software companies gear up portals for employees to view their pay stubs, alter their federal and state withholding, and download tax forms. Though the Westward-2s should automatically post to the ESS once they're available, send a notice to employees when they're ready for download. The portal will also allow employees to consent to electronic W-2 delivery.
Absent an online portal, businesses may also ship their employees their W-2s by e-mail. Depending on your staff size, information technology could accept anywhere from a few minutes to a few hours — and the risk of carpal tunnel — to get these emails out.
Sending financial information by electronic mail engenders security concerns. Encrypt W-2s with unique passwords so that only the rightful recipients can open them. The countersign could incorporate the last few digits of the employee's Social Security number (SSN) and a zip code, for example.
iii. In the post
When in-person and electronic delivery options neglect, put your employees' W-ii through the postal service.
Again, you have two options for mailing Due west-ii forms to employees: directly from the payroll provider or through y'all.
The service you used to generate the W-2 volition likely offer to send employees their Due west-2s direct to their door, cut y'all out of the procedure. While it might cost you some extra money, it's likely that employees will get their forms faster and with fewer errors.
Yet, y'all may also print, package, and send the W-2s yourself. Make sure you're using privacy envelopes to protect employees' Social Security numbers and other personal information.
Notation: Forms W-ii filed by mail service with the SSA must be accompanied past a Form Westward-3, which summarizes all employees' W-2s. E-filers don't need to create a Form W-iii.
Don't be late for this very important date
(I played the White Rabbit in my middle school production of Alice in Wonderland. Can you tell?)
Generating, filing, and issuing Forms Due west-2 should be at the top of your payroll management to-practise list starting on Jan. one. The IRS imposes severe penalties on small businesses that fail to file and share Forms W-2 on fourth dimension.
The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.
Source: https://www.fool.com/the-blueprint/how-to-send-w2-to-employees/
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