The W-2 Form is a statement prepared by the employer for those who were employed at any time during the previous year. Also known as a statement of earnings or Wage and Tax Statement, the W-2 Form indicates the total gross earnings of an employee. The W-2 also shows the employee's Social Security earnings, Medicare earnings, federal taxes and state taxes withheld from wages over the previous year. This form is due to employees by January 31 of each year and is used to complete their annual tax return.
Payroll Register and W-2 Preparation
The information for W-2 tax forms will be gathered from your business payroll register. This payroll register should record each employee's wages, withholding for FICA, Medicare and Social Security. Any deductions for health savings accounts, medical plans or any other deductions should be recorded in this payroll register.
Employer Information Needed
For each W-2 tax form prepared by the employer, include the Federal Employer ID Number, the full legal name of the business, and the business mailing address. When preparing a large number of W-2 tax forms, some employers will also add a control number to help in processing and tracking. Most payroll preparation software programs will have the option to add this number to the tax forms.