It’s Beginning to Look A Lot Like W-2 Season
Posted by Kara DelTufo on Mon, Jan 30, 2012 @ 10:08 AM
Though tax day is not until April 17th, most employers are focused on January 31, 2012. This is the day when every employer engaged in a trade or business who pays remuneration, including noncash payments, of $600 or more for the year for services performed by an employee, must give employees Form W-2, Wage and Tax Statement reflecting information about:
• the employee's wages, tips, other compensation;
• social security, Medicare, withheld income taxes; and
• advance earned income credit (EIC) payments.
Employers must also send a copy of the W-2 to the Social Security Administration. Some employers may not be inclined to worry about this – particularly if a third-party payroll service provider provides the W-2 statements. But the IRS states that this does not relieve an employer of the responsibility to ensure that Forms W-2 are furnished to employees. And employers who fail to comply may be subject to IRS penalties.
By Kara M. DelTufo
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