Did you know that three-quarters of Americans say that money’s a massive source of stress? If you’re a business preparing for this tax season, we can help lower that stress.
Are you wondering what are the benefits of W2 generator? Not to worry! In this guide, we’ll go over why you should consider using an online W2 generator.
Want to learn more? Keep reading to find out.
What Are W2 Forms?
A Wage and Tax Statement, or the W2 form, is a document employers send to employees at the end of the year. This document also gets submitted to the Internal Revenue Service. W2 forms allow employers to report employees’ salaries and wages to the SSA.
For income tax purposes, the SSA will share this information with the IRS. As an employer, you have to send a W2 form to employees if you paid them a wage, salary, or some other compensation.
Prepare Electronic Forms
Years ago, people had to fill out W2 forms that they ordered from the IRS. You can’t print a W2 form. If you don’t order the forms in time, you might not meet the deadline.
This is why people turn to an electronic solution like a W2 generator. This way, you can start preparing the W2’s right away. You don’t have to wait for paper copies to arrive. The electronic version is easy to send to your employees.
Simple and Straightforward Process
The online generators get designed so they are easy to navigate. All you need to do is add in your employee’s information. Next, you will select a template, and then your W2 form is ready to get sent to employees.
Streamline Your Records
The benefit of using a W2 generator is that you won’t have to fill anything out by hand. You can streamline your record keeping. This will help you manage your business’s cash flow. You can better prepare for the new fiscal year. You’ll also get to store all the records on your computer. Save space in your office and keep everything in one spot.
Consistent Form Generator
If you’re a new or established business, you’ll want to aim for a consistent brand. By using a form generator, you can keep the same branding with your business.
Do you want to update your company name? You can update your W2 forms with a simple drag and drop application. You won’t spend hours trying to update your information.
What Information Do I Need?
Before you generate your W2 forms, make sure you have all the information you’ll need.
Read the employee’s last pay stub from the previous year. If you already use payroll software, you’ll find this information on the electronic form.
You’ll need to include your employee’s occupation, address, name, and SSN. You’ll also need to add information about your company. Include your employee’s compensation and earned wages for the tax year. Don’t forget the payroll deductions.
The payroll deductions need to get broken down into a few categories. They include state and local taxes and federal tax. You’ll also need to add the medicare deductions and social security deductions.
Do your employees have employer-paid insurance or healthcare? Include the taxable price of those benefits. Has the employee contributed to an IRA or made deferrals? Note those contributions on the W2.
By using an online generator, you can fix any mistakes you make.
Review the W2 Information
After you have entered the information into the online generator, with a click, you’ll have your W2 forms. Before submitting anything, make sure you print these copies off.
Give the forms to your employees and ask them to review the W2. Make sure they circle any mistakes they find. It’s hard to fix an error on a W2 once the form has gotten filed with the IRS.
You will avoid trouble by asking your employees to make corrections. By using an online generator, you can go in and fix the error right away. If you only use printed copies, you’ll have to fill out everything again by hand. Save yourself time by using a W2 maker.
Submit to the SSA
Next, you’ll need to file your form with the SSA. You need to send copies to the IRS, employees, and keep some for your record. The state, local governments, and the IRS use the W2 to verify earnings. The social security administration will oversee the filing of all the documents.
How Do I Choose a W2 Generator?
Look for an online generator that will accept specific file formats. You could also find one that plugs into the payroll system that you’re currently using.
Interface, customer support, and pricing are essential factors to consider, as well. When you compare providers, you will find the right software for your business. You will save hours of data entry with this software.
If you have close business friends, consider asking them what software they use. Read reviews online about the company before picking. Check out this W2 generator.
Now You Know More About a W2 Generator
We hope you found this guide on a W2 maker helpful. Consider creating your forms with a W2 generator. This will keep everything stored in one spot.
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