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 […]

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 […]