Online W2

Answer 1

Ever wonder how the federal government knows how much you make each year? Each January, businesses are required by law to report the salaries paid to each of their employees. That amount is put onto a W2 form, which is sent to the employee to verify their earnings for the year. Many businesses mail paper copies of this form, but an increasing number of employers are making the W2 form available online -- it allows employees to file their tax returns sooner and it uses less paper. If you need a paper copy of your W2, businesses are required to mail a paper copy, which you can request in your employer's payroll office.

Answer 2

Most in the United States who has earned wages has received a W-2 Statement. Officially known as a Wage and Tax Statement, it is a document prepared by the employer, itemizing the wages earned, pretax retirement benefits received, as well as the amounts withheld for federal income tax, Social Security, Medicare and state and local taxes.

The W-2 is prepared in January of the year following the end of the tax year. The W-2 is submitted to the IRS by the employer, to the state taxing authority, and to the employee. The W-2 must be sent no later than January 31, and most are sent sooner. Normally, the employee receives a paper copy, but obtaining a copy of the W-2 online is becoming more popular, as more people file electronically. If a W-2 is not received, the taxpayer should contact the IRS, who will then contact the employer.

When taxpayers file electronically, they will normally use software for preparation of their return. If they have a paper copy of their W-2, the information on the W-2 must be manually entered into the program. This can become tedious, especially if the taxpayer has multiple W-2 forms.

If a taxpayer has an electronic copy of their W-2, their tax preparation time is much easier. The information can usually be copied and pasted into the tax preparation program, or fully integrated into the software. In addition, an online W-2 is less likely to become lost than a paper copy, If there is access online, a quick trip to the website will get the information quickly.

More and more employers are filing W-2's with the IRS electronically and should have an electronic copy of the W-2 available. If the taxpayer desires, they may consider requesting an online W-2 from their employer, or the company that handles the company payroll. Members of the military currently have online access to their W-2's. Some companies have contracted with third party providers to store W-2 information. For a small fee, usually around $10.00, the employee can obtain an online W-2, if the employer utilizes that provider. Some third party providers have more than 1,500 employer's W-2's in their database.

The taxpayer can check with the providers to determine if theirW-2 is accessible, or they can ask their employer. In either event, obtaining an online W-2 can save a person a great deal of time in tax preparation, and the small fee may be well worth the cost of the service.