Make W2 Processing Simple
W2 Explanation: Breaking Down The 123s And ABCs Of This Important Tax Form
Here at The Payroll Company, we understand that the W2 form can overwhelm employees. Every year we consult with our clients and their staff to deliver a thorough W2 explanation that streamlines the process and gives our partners the information that they need before they file their taxes. If you’re already dreading your W2 processing this year, read on — understanding some of the many 123s and ABCs of this important tax form can make the process as simple as possible for you.
Our W2 Explanation Can Break Down The (Many!) Boxes On This Form:
Yes, there are a lot of boxes to read through on your W2 form; at The Payroll Company, we offer a W2 explanation regarding the most important sections to ensure that you know everything you need. We break up the most important information into 1, 2, 3 and A, B, C sections:
Box 1 (Wages %): Box 1 calculates the cumulative total of your taxable wages, taxable fringe benefits, tips and other compensation.
Box 2: This section indicates the total Federal income tax amount taken from your salary during the year.
Box 3: Here, you’ll find the total amount of your wages that were taxed for social security.
Box A: Box A lists the employee’s (your) social security number. As part of our professional W2 explanation, The Payroll Company suggests making sure that the social security number is correct on this form.
Box B: This is where the Employer identification number (EIN) will be listed. This is a unique number specific to your employer that also must be typed in correctly.
Box C: Box C lists other pertinent employer information. In this section you’ll find employer name, address and zip code.
The Payroll Group: Professional Expertise With W2 Processing
Of course, they are many more boxes and sections found on the W2 form. State taxes, retirement contributions, allocated tips and even dependent care can all be listed on this document. If you’re feeling overwhelmed with your W2 processing, The Payroll Company can help. Our financial and tax experts will work with you to understand everything listed on this form so you can file with complete compliance confidence. For more information on our list of tax services, visit our website today at: http://www.payrollcompany.biz.