Even though it’s still fall, your small business needs to start thinking about filing its taxes in the coming new year. During tax season, it feels like the paperwork your business must organize and file with the IRS is never-ending, and the process can feel overwhelming. It’s also important that you make sure all statements filed with the IRS are as accurate as possible to prevent an audit or legal action taken by the federal government. If you have employees, you must also send each of them a W-2 statement.
A W-2 provides a basic report on the taxable wages an employee was paid during the previous year, along with information on the employment taxes that were held back from that employee’s paycheck during that year. As an employer, you are required to send your employees a W-2 statement regardless of how low their wages or earnings are. And you must send out these W-2 statements to your employees in digital or paper form no later than January 31st of the following year.
As your bookkeeper, we can help you prepare and send out your 2022 W-2 forms to your employees well before the January 31, 2023 deadline. One of the ways you can ensure that this process goes smoothly is to make sure all of your employees’ addresses are correct prior to the end of this year. If one of your employees has an invalid address on file, your chosen mailing service will attempt to send the form to that address, but it will be returned if it is incorrect. We also cannot print and send W-2s to any of your employees who have a missing address.
Before you contact us to have a bookkeeper on our team prepare your business’ W-2s this year, we strongly recommend having one of your HR or administrative team members request that your employees verify and update their addresses in your system before the end of the year. If you have any questions about this process or filing your taxes in 2023, don’t hesitate to contact us.