There are over thirty million small businesses in the United States today. This number comprises ninety-nine percent of all businesses in America. Small businesses lead the way for business in America, but they still face challenges that big businesses do not.
Whereas big businesses have specific departments for Human Resources, Taxes, and Payroll, this may all fall in the hands of one person in a small business.
If you’re wondering how to create W2 forms easily, without taking hours and creating headaches, read on to learn all the tips and tricks for small businesses.
What Is a W2 Form?
It’s best to begin with the basics, using all of the online free tax tools available to you. A W2 form reports an employee’s annual wages to the Internal Revenue Service (IRS). It shows what an employee paid in taxes that year and will decide what taxes are left to pay.
This is shown by breaking down what was withheld from the employee’s paycheck in that year. If the employee chose to have less withheld, they might have to pay taxes the next year.
If they held too much, they would get an income tax return. Employers are responsible for sending their employees their W2 form at the end of the year so they can complete their taxes.
Automatically Create W2 Forms
If you are a small business owner, you probably already know how much there is to learn about taxes and employees. It can seem very difficult and tedious work, but it doesn’t have to be. In fact, you can actually create W2 form with W2 generator, which does all the hard work for you.
This service can help you create an employee’s W2 form in less than two minutes, as it automatically fills in all of the correct calculations for that tax year. All you have to provide are the company’s information, the employee’s information, and the employee’s wage details.
No matter how small or big your business, you can be sure that your W2s are easily and quickly taken care of. And, as an added bonus, they are always printable.
Request Paper Forms
If you prefer to do it a more traditional way, you can request W2 forms from the IRS that can be mailed to you. You will then have to manually handwrite all of your employee’s wages and information for that year, and manually do all of the calculations.
Depending on how busy your business is and how large it becomes, this could take time away from doing other things for your business. You also have to keep in mind that any mistakes you make on the forms could create problems for you in the future.
W2 Forms for Small Businesses
Learning how to create W2 forms for your small business doesn’t have to be difficult! Now that you know what they are and what options you have, you can make the right decision for you and your business.
Automatically creating the forms might be best for you, but always know that requesting the paper forms are an option. If you enjoyed this article and would like more lifestyle advice, browse through our catalog today!