File Form W-2 Online for 2021 Tax Year
What is a W-2 Form?

A W-2, known officially as a “Wage and Tax
Statement,” is a tax form employees use to file federal
and state taxes. The form shows the amount of taxes
withheld from the employee’s paycheck for the year,
and paid directly to the IRS and state government by
their employer.

What do you need to fill out a W-2?

When you’re ready to complete
your W-2s for the year, you will
need the following information at
your fingertips:

Have this information ready? File your Form W-2 in less than 2 minutes.

  • Personal information for each employee, including name, address, and
    Social Security number
  • Your employer EIN number
  • Total amount of wages and/or tips paid for each employe
  • Total federal, state, and local taxes withheld for each employe
  • Total Social Security and Medicare taxes withheld for each employe
  • Deductions for dependent care assistance programs for each employe
  • Other compensation and benefits including elective deferrals for
    retirement plans and the cost of employer-sponsored health coverage for
    each employe
Instructions for filling out Form W-2

Remember that you’ll need to prepare and deliver a different W-2 form for
each employee.

Boxes A-F on a W-2 represents employee/employer information:

  • Box A – Be careful to ensure your employee’s social security number is
    entered correctly her
  • Box B – Enter your EIN number
  • Box C – Enter the name and address of your business
  • Box D – This is the control number, and is not necessary to us
  • Box E & F – Enter your employee’s name and address
Once complete, enter the following in the numbered boxes:
  1. Gross wages, tips, and any other compensation.
  2. Total amount of federal income tax withheld from employee wages for the year.
  3. Total amount of Social Security wages for the year. Social Security wages can be different than the figure shown in Box 1, as Social Security wages also include any deferrals to retirement plans as well as contributions to Health Savings Accounts. This box will also reflect whether the income threshold ($137,700) has been hit. Once that threshold is reached, you would no longer include the wages above $137,700.
  4. Total of Social Security tax withhel.
  5. Total of Medicare Wages. Like Social Security wages, Medicare wages can also include retirement deferrals and HSA contributions, but unlike Social Security, there is no income threshold to reach, so all wages are included in the Medicare wage total.
  6. Total Medicare tax withheld for the year.
  7. Report any Social Security tips received.
  8. For restaurants and bars, enter any allocated tips that the employee received during the year. Note that there are several special rules for restaurant payroll for tipped wages.
  9. Box 9 is left blank. It was previously used for businesses that were participating in the W-2 Verification Code pilot program.
  10. Report any dependent care assistance that was deducted from employee wages, as well as any employer contributions .
  11. Enter any distributions from nonqualified deferred compensation plans.
  1. Box 12 is where a variety of tax-deferred compensation, benefits, and non-monetary compensation are recorded.

Common mistakes to avoid while filling out Form W-2

Misspelling your name or SSN in the W-2 form will most likely result in your employer rejecting it;
so make sure the information is entered correctly

Proper entry of the wages and tips is extremely important to avoid surprises during the tax season as you may end up owing money to the IRS. On the other hand, if you overreport your deductions, you will end up with a smaller take-home amount in your paycheck, but a larger tax refund at the end of the year which is like giving the IRS a free loan

Make sure you enter the correct value for dependent care benefits as it will also affect the amount of tax withheld from your paycheck

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