Form W-2 Processing Overview

Form W-2, Wage and Tax Statement, is used to report wages paid to employees and the taxes withheld from them.

Almost all firms use six-part W-2s, distributing the six copies as follows:

• Copy A — to the Social Security Administration

• Copy B — to the employee for the employee’s federal tax return

• Copy C — to the employee for the employee’s records

• Copy D — to the employer for the employer’s records

• Copy 1 — to the employee for the employee’s state, city, or local taxes

• Copy 2 — to the employer for the employer’s state, city, or local taxes

Important W-2 Processing Facts

• The Payroll module prints a W-2 for each employee who was paid any amount during the calendar year.

• The IRS requires that you file a W-2 for an employee if you paid the employee any amount during the year or if you withheld income tax or Social Security for the employee.

• When an employee leaves the firm, you are obligated to supply the employee with a W-2 within 30 days if the employee requests one.

• The Payroll module lets you produce W-2s at any time during the year without affecting the database. You can print W-2s for as many or as few employees as you wish at any time.

• You can print W-2s on W-2 forms that are specially designed for use on computer printers.

• You can use Vision Payroll to print W-2 information on plain paper, and then transfer the information by hand or typewriter to the W-2 forms.