Complete Your Employees Tax Forms With These Tips

August 28, 2019

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Every business owner has certain duties and procedures to carry out for their employees, one of them is the tax  forms. Sometimes it can be overlooked and might cause some issues with the government, take a look below at some tips that can help you complete it properly.

What Kind of Forms Are There?

There are two kinds of tax statement forms, W-2 and W-4. There are some W-4 and w2 creator websites that can help you generate these forms to get the process started. The W-2 is the output document, meaning it’s provided by the employer to the employee; it summarizes gross pay for the year. As for the W-4, which is the input document, the employee uses it to inform the company’s payroll department how much tax to withhold from their monthly salary. As an owner, you need to learn how to properly complete a W-2 Form for employees to accurately report their income and tax contributions to the federal government.

Give Out The Forms Promptly 

You should always give any new employees the W-4 document at the very start once they’ve accepted your offer and agreed to work for you. You’re going to need it because when it’s time for the W-2 document to be issued by year’s end; you won’t have any problems with missing deductions. 

Don’t Panic If You’re Late

Usually, these forms need to be ready and sent to the IRS and the Social Security Administration by late December, but you are given extra time till January 31st to get them submitted. So if you’re sending out the documents for the 2019 tax year, you’ll need to file them with the SSA no later than January 31, 2020, for both mailed and online filings. 

Double-check Everything

It’s not entirely unexpected that there would be some miscalculations or missing information, that’s why it’s prudent for you to double-check everything before submissions. The best way to file your forms is to first send them to employees in early January, so if there are any errors or omissions on the ones you completed, you can fix the mistakes before sending them off to the SSA by the time it needs to be submitted. 

Keep An Eye Out For Tips

Remember to keep track of your employee’s tips and have them report it to you regularly, recordkeeping and reporting of the tips are still important because it’s taxable. As an employer, you should retain the tip reports as well as the rest so you can withhold employee income taxes and the employee share of social security and Medicare taxes based upon the tips they’ve received. 

Do Not Include FUTA taxes For Your Employees

Some employers miscalculate things sometimes, that’s why it’s important to have help. File the Form 940 and FUTA documents separately, then deposit those taxes. Only you should pay for it, it is not withheld from the employee’s wages.

Taxes are annoying to handle, but it’s essential to do so as an employer. Follow the steps needed and make the process much easier for you.