Form W-2 is a wage and tax statement filed with the Social Security Administration (SSA) to report the wages paid to employees and taxes withheld (federal and state income tax, Social Security, and Medicare) from them during a calendar year.
Form W-2 reports information about an employees’ annual wages, including their gross wages and taxes withheld.
After you’ve created professional pay stubs with 123PayStubs, you can also quickly and easily e-file Form W-2! Here’s some helpful information you should know about Form W-2:
Who Must File Form W-2
Every employer engaged in a trade or business who pays employees must file a Form W-2 for each employee. Thus, employers will need to file a Form W-3 for employees whom:
Income, Social Security, or Medicare tax was withheld
Income tax would have been withheld if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on Form W-4, Employee’s Withholding Allowance Certificate
Information Needed to Complete Form W-2
Employer Details: Name, EIN, employer type, and address
Employee Details: Name, SSN, address, and contact information
Federal Details: Social Security and Medicare taxes withheld
State Details: State wages and state income tax withheld
Local Tax Details: Local, city or other income tax withheld
Do I Need to File Form W-3?
Anyone required to file Form W-2 must file Form W-3. Form W-3 is used to summarize Form W-2. Form W-3 combines all employee information from all of the W-2 Forms. It is used to show the IRS the total amount you paid to all employees, as well as the total federal income, Social Security, and Medicare taxes withheld from all employees.
Both mail or electronically-filed Copy A Form W-2 and W-3 must be filed with the Social Security Administration by January 31, 2022. Form W-2 is due to employees no later than January 31st as well.
Is There a Deadline Extensions for Form W-2 or W-3?
Employers may request only one extension of time to file Form W-2 with the SSA. To request a deadline extension, you must file Form 8809, Application for Extension of Time to File Information Returns. You must request the extension before the due date of Form W-2. If the IRS accepts your request, you will have an additional 30 days to file your return.
It is important to note, the IRS will only grant deadline extensions for Form W-2 in limited cases for extraordinary circumstances or catastrophe such as a natural disaster.
What are the Form W-2 Copies?
Form W-2 is a multipart form and it is divided into several different copies. You will need to provide the applicable copies to the following people:
Copy A: goes to the Social Security Administration
Copy B: is for filing with the employee’s federal tax return
Copy C: is for the employee’s records
Copy D: is for the employer’s records
Copy 1: If required, file with the city, state, or locality
Copy 2: If required, the employee will file this copy with their state, city, or locality
What if I Make a Mistake on Form W-2?
If you file Form W-2 and realize there was a mistake on it, don’t panic! If you make a mistake on Form W-2, you can file a corrected form using Form W-2c. You should file Form W-2c as soon as you discover an error on your original return. Employers must furnish the corrected W-2 forms to employees as well.
Form W-2c can be used to correct the following errors:
Incorrect amount entered
123PayStubs makes meeting your annual filing requirements quick and easy! When filing Form W-2 with 123PayStubs, all you need to do is enter in the correct form information, review your return, and transmit it directly to the SSA.
Once the SSA processes your return, we will notify you of your returns filing status instantly. Also with 123PayStubs, your Form W-2 will be validated against the IRS’s form instructions in order to reduce the chances of a form rejection.