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Denver Accounting Firm W-2 Checklist

November 28, 2018

Every year businesses both small and large are faced with the responsibility of distributing W-2 forms to their employees either by mail or in person. Potentially an afterthought, these small pieces of paper actually are vitally important for both the employer and employee in terms of tax purposes, filing, and incentives. The form discloses the necessary information needed for determining the appropriate amount of tax which has been previously withheld or charged to workers, in addition to any retirement funds allocated throughout the year or potentially other specialized accounts contributed to through the money earned and distributed either pre or post tax.

As the year end approaches there are a number of tax related and payroll issues which must be finalized in order to ensure all employees receive their necessary and required compensation. This information comes on a W-2 form and holds valuable details for an individual’s tax income reporting purposes based on their personal earnings from employees over the preceding calendar year. For example, 2018 W-2 forms cover January 1 through December 31 of the year 2018 and should be distributed at some point during January 2019 to employees for tax filing purposes. This information is then utilized to determine and report important aspects regarding an individual’s earnings.

All of the following information is required to describe, not only what is a W-2 but also the information needed for a complete adherence to the federally mandated guidelines.

Employer Information

The Federal Tax Identification Number or Employer Identification Number (EIN), is an obvious component to correlate any business to the appropriate group of individuals working for them. Along with the EIN, basic demographic information such as address and registered name are also required to be printed onto the form.

Employee Information

Also needed is the same basic demographic information from each and every employee. While the workers will not have a specified EIN, each should possess a valid Social Security number (SSN), used to identify and match every employee to their legal name and address.

Employee Earning Information

Only after ensuring each of the two preceding criteria are verified can an individual move onto correlating the reported earned income for all appropriate sources. Total wages, in addition to Social Security funds and Medicare reporting are distinguished and listed in the corresponding box for each amount. Copies are then distributed for both parties - the employee and employer - with multiple available to each.

If you need assistance determining the appropriate amounts for each employee and help with filling out required W-2 information then contact the experts at Bloch, Rothman, and Associates. Their highly trained and knowledgeable associates can provide an overview of your business or personal tax situation, in addition to answering any questions regarding individual and business income taxes. Our associates also can assist with a variety of potentially different bookkeeping options which may be suitable for your needs and eliminate the stress associated with payroll completely. A full detailed review of your specific financial situation can be completed in addition to providing resolutions for any detected issues. All services, including free of charge E-filing options will be completed in a timely manner, depending on your restrictions and possible tax deadlines. Whether you need W-2 help, an explanation on a random tax form or are in need of a variety of any other services, our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for a free, no obligation consultation.