How Do I Report Income from Employee Commissions on a W2 Form?
Report income from employees’ commissions in Box 1: Wages, Tips, and Other Compensation on a Form W2. File a copy of the completed W2 form with the Social Security Administration. Send a separate copy to the applicable employee so that they can manage their taxes. Enter an employee’s commission as their income on Form 941. […]
Do I Need to Send a W2 Form for Reimbursements to Employees?
Yes, you should generally send a W2 form for reimbursements to your company’s employees. Report substantiated employee business expense reimbursements in box 12 of each applicable Form W2, Wage and Tax Statement. Tax any unused expense amounts as wages. Send the W2 forms to employees so that certain ones can report excess reimbursements in line […]
How Do I Report Income from Health Savings Accounts on a W2 Form?
Report income from employee benefits, such as a Health Savings Account, in box 12 of a Form W2. Use code W when you report your employer contributions and the employee’s contribution through a cafeteria plan. Report additional non-excludable employer contributions to an HSA with the employee’s income in boxes 1, 3, and 5. Use box […]
How Do I Report Income from Employee Stock Purchase Plans on a W2 Form?
Report the income of Employee Stock Purchase Plan shares as wages on Form W2. Fill in box 1 of a Form W2, Wage and Tax Statement with the total earned amount. An employer may also include the reported compensation from box 1 in box 14. Enter the same information in boxes 16 and 18 if […]
How Do I Report Income from Employee Educational Assistance on a W2 Form?
Report certain income from employee educational assistance as wages on an employee’s Form W2. There are specific exceptions and guidelines for how you report these benefits. Assistance benefits that exceed $5,250 belong in box 1 of Form W2. Do not include the payments in box 1 that meet the threshold but the Internal Revenue Service […]
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 […]