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
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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.)

Testimonials

“I have been with iAS for two years and I’m blown away at the level of service. It’s like having an in-house HR team. They go above and beyond to help, never make you feel silly for asking a question and are extremely warm and personable. ”

“Affordable, Fast and Reliable! Both national payroll services I used before iAS over promised and under-delivered. The iAS staff can always be counted on to deliver what they advertise. The signup/onboarding was easy and user-friendly. I’m glad I made the switch! ”

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