What is Form W-2
Form W-2 is that which is required by the IRS of employers to report wage and salary information of their employees. This form also reports the amount of federal, state, and other taxes withheld from the employee’s paycheck. For employees, the information on their W-2 form is extremely important when preparing their tax return. Any amount withheld in the paychecks of employer by their employees is remitted to the IRS.
Who Must File Form W-2
Every employer engaged in a trade or business, who pays, including non-cash payments, amounting to $600 or more for the year (including income, social security, or Medicare tax withheld) for services performed by an employee, must file Form W-2 with the IRS for each employee. This is notwithstanding the relationship between the employer and the employee from whom income, social security, or Medicare tax was withheld.
Exception to filing Income Tax would be if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on Form W-4, Employee’s Withholding Allowance Certificate. References to Medicare tax should also include Additional Medicare Tax.
When to File Form W-2
File Copy A of Form W-2 with Form W-3 by February 29, 2016, and due date is March 31, 2016 if filing electronically. You may be asked to pay penalty for each Form W-2 that you file late.