Business Knowledge
Starting a new business or need assistance with your current business?
- iAS can assist with startups
- Keep your business out of hefty late-fee fines
- File all employer taxes
554 W Main Street Suite 400
Buford, GA 30518
What is W-2 & W-3 preparation and year-end distribution?
- Definition: a form that includes workers’ wages and withholding from the last calendar year, and information about benefits and deductions.
- Deadline: January 31st to workers and the Social Security Administration (SSA), along with W-3
Information: All information for W-2 forms come from your payroll register. For example, this includes the previous year’s total wages, withholdings, and deductions per worker.
Parts of W-2 Form
- Copy A -> SSA
- Copy 1 -> City, state, or locality
- Copy B -> Filing with employee’s federal tax return
- Copy C -> Employee’s records
- Copy 2 -> Another city, state, or locality
- Copy D -> Employee’s records
Preparing W-2 Forms
- [Box 1] Total wages, tips, and other compensation
(gross pay) - [Box 2] Total amount withholding
- [Box 3] Total Social Security wages
(up to maximum) - [Box 4] Total Social Security Tax Withheld
- [Box 5] Total Medicare wages and tips
- [Box 6] Medicare tax withheld
(includes extra Medicare tax) - [Box 7] Social Security tips
- [Box 8] Allocated tips
- [Box 9] EIC payments
(earned income credit) - [Box 10] Dependent care benefits
- [Box 11] Non-qualified plan
- [Box 13] Retirement plan, Statutory Employee, or Third-part sick pay
- [Box 14] Other deductions and compensation
(After-tax pay, Auto reimbursements, Health insurance deductions, etc.) - [Box 15] Company’s state tax ID and two-letter state code
- [Box 16] State wages
- [Box 17] State income tax withheld
- [Box 18] Local wages
- [Box 19] Local income tax withheld
- [Box 20] Locality name
- [Box 12] Up to 4 other types of compensation
(Uncollected Social Security, Non-taxable sick pay, Elective deferrals to 401(k), etc.)
