Using Payroll Information to Generate W-2 Form
Every New Year brings a lot of happiness and celebrations but it also welcomes responsibilities to start preparing IRS tax forms. Among many forms, the Form W-2 (Wage and Tax Statement) is filled for reporting wages paid to employees as well as the taxes withheld from them. The amount of income tax withholdings are determined by examining filing status, pay frequency as well as the number of exemptions. The month January is a suitable time when employers issue W-2 forms to their employees.
Generally, employers have two options to generate W-2 forms for their employees. They either choose to take payroll software or buy W-2 software. Usually, the employers trust on payroll software that generates Form W-2 by using payroll info of each employee for the entire year. The small-business owners will have to enter their company information including employer identification number, company address and other contact details. Afterwards, it is required to enter employee information like social security number, permanent address and so on.
In the payroll software, it will be required to enter hourly or monthly pay details of each employee. The gross income of permanent or salaried employees will automatically be entered into the system whereas variable types of incomes inclusive of incentives, bonuses, commissions etc will have to enter gross manually. Once the right amount to withhold every month of each employee is calculated, the employer can create checks and print W-2 forms.
Making right payroll calculations and filing accurate payroll taxes is a complex task and therefore guidance of an expert is always appreciated. Therefore, hiring an online payroll service provider who can provide payroll and payroll tax-filing solutions is a good option. They will automatically follow the same procedure electronically and provide you the end-result without making any delay.
The best deal in outsourcing payroll tax-filing services is that the online payroll company is responsible for any delay, non-payment or payroll errors. If the company receives any notice from the IRS department, they are accountable to verify and give explanation to the concerned department. Moreover, they also pay huge fines if they are found guilty in paying or filing Federal, State and Local payroll taxes.
However, before you contact any online payroll service provider, you must have complete payroll information to include the useful features in your payroll plan. Therefore, learn the payroll basics to run small business payroll efficiently. There are many websites that provide adequate payroll information to start payroll electronically. Get in touch with one of them and reduce your payroll burden for once and all.
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