Can Payroll Software Handle Both Salary and Hourly Employees?

Yes, it is possible for your payroll software to handle both salary and hourly employees. Certain employers may prefer to invest in a specific program that caters to a single type of worker over another. Fully functional and adaptive payroll software should let your business run payroll while you spend less time worrying about the […]

How Do I Report Income from Employer-Provided Education Assistance on a W2 Form?

Treat income from employer-provided education assistance as fringe benefits when you report them in Box 1 on a W2 form. Employers enter the value of different fringe benefits in Boxes 1, 3, and 5 on Form W2. Tax-free fringe benefits for employees’ educational expenses reach the limit at $5,250. All parties must generally regard employer-provided […]

Do I Report Income from Employee Tuition Reimbursement on a W-2 Form?

Report your income from employee tuition reimbursement on a W-2 depending on the amount of provided educational assistance. Do not include the benefits with an employee’s wages, tips, and other compensation in Box 1 of a W-2 form if the assistance is $5,250 or less. An employee can exclude up to that value of benefits […]

How Do I Report Income from Employee Transportation Benefits on a W-2 Form?

Use Box 14, marked “Other,” on a Form W-2 if you report income for employee transportation benefits. You should first understand the exclusion rules of certain transportation fringe benefits. Do not report transportation benefits in your employee’s wages if their local transportation usage has little to no value. The IRS outlines that excluding an employee […]

How Do I Report Income from Employee Transit Passes on a W-2 Form?

First things first, employers do not need to follow any mandated federal reporting requirements for a qualified transportation plan. You may choose to report transportation fringe benefits, like a transit pass, on Form W-2. Enter relevant transit pass deductions in Box 14, labeled “Other,” on Form W-2. Employers also do not face any specific disclosure […]

How Do I Report Income from Employee Parking Benefits on a W-2 Form?

Did your business pay more for your employees’ parking than the monthly exclusion limitation? Treat any excess amount as compensation to the employee. Include that compensation on your employee’s Form W-2. These are specific circumstances when you do not treat what you pay to a third party for employee parking as a disallowed expense. The […]

How Do I Report Income from Employee Relocation Expenses on a W-2 Form?

Report the financial assistance that you pay any relocating employees for their move with their wages on a W-2 form. The Internal Revenue Service previously suspended excluding payments from wages for qualified moving expense reimbursements. Exceptions to the tax law relate to an active member of the U.S. Armed Forces or moves prior to Jan. […]

Can I File W-2 Forms Electronically If I Have a Small Number of Employees?

Yes, the Internal Revenue Service encourages and may even expect employers to electronically file W-2 forms for their company. The most important step before you electronically file is to look for software that makes e-filing easy for your business. Do not assume that you can get the same benefits from the same software that a […]

Can I File a W-2 Form for Payments Made to a Commissioned Salesperson?

The short answer is, sometimes. The form that you file for commission payments will depend on how you classified a worker within your company. Did you hire an employee that earns a smaller salary and earns the bulk of their income through commission? File a W-2 form for payments made to them as a commissioned […]

Can I File a W-2 Form for a Deceased Employee?

Yes, you must take certain steps as an employer like filing a W-2 form for a deceased employee to compensate their estate for unpaid work time. Keep in mind that there is some nuance to the following steps. How you distribute employee wages for deceased individuals depends on your state’s regulations. Generally, you should: Obtain […]