Make sure you are ready to file.
Properly Classifying Workers
The IRS requires that workers be classified correctly: as employees or independent contractors. It can impose fines and penalties if a worker you pay as an independent contractor should be paid as an employee.
Verifying Distribution and Submission Deadlines for Forms
The W-2 process involves two steps. The first step is to distribute W-2 forms to employees. The second step is to submit these forms to the Social Security Administration (SSA).
Verifying Employee W-4 Forms
You must have a W-4 form on file for all employees at all times. Ensure that employees have entered accurate and updated information on the W-4 forms they submitted to you.
Gathering Payroll Information
You will need some basic information about your company for all W-2 forms: your company’s Employer Identification Number, the company name and address, postal code, and the state tax identification number for your company (if applicable).
Preparing W-2 Forms
The W-2 forms have several copies: Copy A (special red edition) for the Social Security Administration, Copy 1 for filing with the state or local tax department, Copy B for employee use when filing their federal tax return, Copy C for employee records, Copy 2 for the state or local tax department for the employee, and Copy D for your records.
Distributing W-2 Forms to Employees
You must decide how to distribute the forms to employees. You have two options to distribute Copies B and C. You can either mail them or deliver them to employees in person. You may want the employee to acknowledge that they received the form to avoid questions about whether it was done if they choose to receive the form in person.
Submitting W-2 and W-3 Forms to the Social Security Administration
You must use the W-3 transmittal form when mailing W-2 forms to the Social Security Administration. The W-3 form aggregates all the information from each box on the W-2 form for all employees. You are not required to submit a W-3 transmittal form if you decide to file your W-2 forms online to the Social Security Administration.
Filing Forms Online or by Mail
You have two options for filing these forms. You can file them online in the Business Services section of the Social Security Administration’s website. You will need to register first and then complete the appropriate forms online.
You can also send Copy A of the completed W-2 forms along with the W-3 form to the Social Security Administration. The mailing address for forms sent by mail is Social Security Administration; Direct Operations Center; Wilkes-Barre, Pennsylvania 18769-0001.
Employee Requests for Duplicate Copies of Forms
Employees often lose or misplace their W-2 forms, so they might request a duplicate of their W-2 form. Write “REISSUED STATEMENT” on the new copy and give it to the employee. You do not need to add “REISSUED STATEMENT” if you send an electronic form to the employee.
You may want to charge employees for the first duplicate copy or the second duplicate copy in the year. The IRS states that “there is no prohibition” against charging for a duplicated W-2 form, but it’s a good idea to clarify your policy regarding duplicate forms to employees.
Verifying State Regulations
When completing a W-2 form for an employee, you will send Copy 1 to each state in which the employee works.
Extending the Filing Time
You can file a request on Form 8809 if you need a 30-day extension to file W-2 forms with the Social Security Administration. The request must be submitted by the due date of the form. The IRS grants extensions “only in limited circumstances,” such as a disaster that destroyed your records.
You must fax the IRS if you need an extension to file W-2 forms for employees. The letter should be addressed to the IRS Technical Services, Attn: Time Extension Coordinator. The fax number is 877-477-0752. The letter should include your name, address, Employer Identification Number, and a statement about the reason for requesting the extension, including the reason for the request and your signature.
Warning:
You can only submit one request to extend the submission of W-2 forms with the Social Security Administration if your request is approved. You cannot request a second time.
Frequently Asked Questions
When should you send W-2 forms?
The deadline for distributing W-2 forms to employees and submitting them to the Social Security Administration is January 31 of the year following the tax year.
Where can you get W-2 forms to send to employees?
You can get W-2 forms from an office supply store, your certified accountant, your tax or accounting software, or from the IRS.
Updated by Beverly Bird.
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Source: https://www.thebalancemoney.com/before-you-prepare-and-distribute-w-2-forms-397999
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