Filing the appropriate forms with the Internal Revenue Service (IRS) is of the utmost importance for owners of both large and small businesses, so if you have questions about whether you need to file W2s or W3s, it is critical to speak with a company that is well-versed in financial management.
Employers must file a Form W2 for each of the employees to whom they pay a salary, wage, or other types of compensation. This requires filling out the appropriate form and sending each employee a copy on or before January 31st of each year. The form must contain specific information, including:
The total amount of money made by the employee that year;
The amount of state and federal taxes that were withheld from the employee’s paychecks; and
How much money the employee made in tips.
Employees then use this information to complete their individual tax returns.
Employers must also record each employee’s total earnings, social security wages, Medicare wages, and withheld taxes on Form W3. This information is then sent to the Social Security Administration (SSA) no later than the end of February. Both W2s and W3s must be sent to the SSA at the same time. Furthermore, the totals on an employee’s W2 and those on his or her W3 must match, making it especially important for employers to implement an accurate method of tracking employee wages and deductions. An employer who fails to turn in this documentation to the SSA and his or her employees’ risks being assessed fines and attracting the attention of the IRS.
Although filling out W2s and W3s may seem like a simple process, it can become complex for companies with a lot of employees, so if you live in Oklahoma and are in the process of completing this documentation for your own employees or have other questions or concerns about tax planning, please contact the CORE financial management team to schedule a consultation with a dedicated employee. Members of our team can be reached at our Oklahoma City office at 405-288-1207, while those at our Tulsa office can be contacted by calling 918-209-3441. If you live in or near Lawton, please call us at 580-353-2376 to set up a meeting with one of our knowledgeable employees.