A New Employer’s Guide to W-2 Form Creation and Filing For Tax Purposes


As an employer, you have an obligation to provide your employees with not only their pay but also information about the pay. Requirements vary from state on pay stubs. Some states require them in paper form, while other states require them in some form.

Yet, come January each year, all employers must provide each of their employees with a W-2 form. This requirement by the federal government is for tax purposes.

The W-2 form doesn’t have to be difficult for employers to create if they have an effective payroll system in place. The information that you use for your pay stubs should be the same information you need for the W-2 form.

Read on to learn about creating a W-2 form for your employees.

What Is a W-2 Form?

A W-2 form is a legal document required by the IRS. It’s created by employers to provide information to both the employee and the employer.

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The form contains information about wages and deductions taken throughout the course of the previous year’s employment.

How to Create a W-2 Form?

For many years, employers would just provide a paper version of the W-2 form to employees. It was a standard form created by the IRS so all of the necessary information was included.

You might be wondering, can I create a W2 online? You can create a W-2 form online, often with your payroll program. Many employees appreciate the option of having the W-2 in both print and digital format.

When Is the W-2 Form Due?

The W-2 form needs to be given to employees each year by January 31st for the previous year. It should include all of the information from the previous year’s wages and deductions.

Preparing a W-2 Form

The W-2 form has several parts that are required by the IRS for the form to be complete.

The first section includes information about the employee including their name and social security number. This is how the IRS identifies them.

Then there is an employer section. The employer must include the business name and address. It also needs to include the EIN number. This is the employer ID number which is like the employer’s version of the social security number for the IRS.

When an employer sends in money from the deductions taken from an employee’s check, they include this EIN number so the employer and the employee can be connected together by the IRS.

Then there are boxes 1 through 20 on the W-2 form. Each box has different information connected to both the employee’s gross pay, deductions, and net pay. Some boxes relate to taxes paid to the federal government, while others are for state and local taxes.

Create a W-2 Form for Your Employees at Tax Time

If an employer uses a good payroll program for their pay stubs, the W-2 form should be relatively easy to compile. The year-to-date information for pay and deductions can be used to fill in the needed information on the W-2 form.

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