How Do I Report Income from Wage Garnishments on a W-2 Form?

Employers may decide to report income from wage garnishments in box 14 on a W-2 form. The Internal Revenue Service does not legally require you to state the total sum that you remove from an employee’s paycheck. Use box 14, labeled “Other”, if you include the figure. Add the money that you garnished from a […]

Can I File a W2 Form for Payments Made to a Foreign Employee?

Yes, there are scenarios when it is not only common but is expected of U.S. companies to file a W2 form for payments made to a foreign employee. An employer who decides to hire non-U.S. citizens or residents to provide in-country services must report and withhold the federal income taxes in specific ways. The Internal […]

How Do I Report Income from Severance Pay on a W2 Form?

Include the income amount that you provided an employee in severance pay on the W2 form. Report the payment amount as wages in box 1, which means you must add it to the annual W2 income total. The Internal Revenue Service finds severance pay taxable during the year that an employee receives it. Withhold the […]

How Do I Report Income from Commission Earnings on a W-2 Form?

Report your employees’ commission income, in most cases, in box 1 on a W-2 form. Treat the commissions like wages when you withhold and pay taxes for the business. You must pay regular employment taxes on the wages, such as Social Security and Medicare taxes. You may choose to combine an employee’s salary and their […]

How Do I Report Income from Bonuses on a W2 Form?

Report the bonuses that you paid an employee during the year in box 1 on a W2 form. Bonuses are a form of compensation. The Internal Revenue Service subjects them to the same taxation as your employees’ salaries or additional wages. Withhold a specific amount from employee bonuses for Social Security, Medicare, and additional income […]

How Do I Report Fringe Benefits on a W-2 Form?

Employers must enter the value of certain fringe benefits in Boxes 1, 3, and 5 on W-2 forms. Not all fringe benefits for employees are taxable, but most do require that you report them. Federal income tax, Social Security tax, Medicare tax, and FUTA all affect the value of a fringe benefit. A separate form […]

Are There Any Exceptions or Exemptions to Filing W-2 Forms?

Employers generally must complete, file, and furnish Form W-2 to each of their employees. The information on the form helps to ensure that all employees receive Social Security and Medicare benefits. There are two major exceptions or exemptions for when you file W-2 forms. Do not file a Form W-2 for independent contractors who you […]

Can I File Multiple W-2 Forms Together?

The short answer is yes, but take a moment before you proceed. Reporting income can present intricacies for many employers. Avoid an audit from the Internal Revenue Service and unhappy employees by understanding what your responsibilities are each tax season. Single employers must only submit one W-2 form per employee. The number of roles that […]

What is Semiweekly Schedule Depositor?

Deposit your business’s employment taxes for Wednesday, Thursday, and/or Friday payments by the following Wednesday. A semiweekly schedule depositor must also deposit taxes for the Saturday, Sunday, Monday, and/or Tuesday payments by the following Friday. A semiweekly schedule is one of two options for taxes that you report on Forms 941, 943, 944, and 945. […]

How Do I Report Income from a Lease Agreement on a 1099 Form?

Specific scenarios in the real estate industry and property management dictate which forms you must file and when you need to file them. Landlords and property management companies must fulfill their own unique steps when they report income from a lease agreement on a 1099 form. Landlords – Distribute W-9 forms to your commercial tenants […]