Quick tip for my business owners – every employer who pays wages of $600 or more for the year is required to prepare and file a Form W-2 for each employee. This also includes noncash payments of $600 or more for the year for services performed by an employee when taxes were withheld.
In addition, anyone required to file Form W-2 must also file Form W-3 to the Social Security Administration (SSA). Employers must complete the forms and file electronically or by mail with the SSA and furnish to their employees Form W-2 showing the wages paid and taxes withheld for the year for each employee by the last day of January.
And you may ask, why is this important (besides that is the law) because if you don’t file these forms on time, the penalty per W-2 you fail to report can be as high as $550/per W-2 per employee. Ouch! So make sure you file yours on time.
If you or someone you know forgot to prepare a W-2 for their employee, let us know. We can help you. Here’s a link to schedule an appointment with us so we can help you.
Talk to you soon,