W-2 forms are usually given by an employer to the employees and the particular IRS at the end of a fiscal year. Such forms include information related to employee annual salary together with the total tax that is pending within the same, prior to generating the paycheck in hand. Know how to report W2 income in QuickBooks.
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Let’s learn more about W2 Income forms and how to report such forms in QuickBooks.
What are W2 Income forms?
W-2 or form W-2 is a taxes and wages statement that is compulsory for you as an owner to share with your employees every year.
Such forms should be delivered or can be mailed to the employees; however, they should not be sent post 31st January of every year. W-2 forms are specifically created for employees. However, if your particular business hires the services of independent contractors, then instead of W-2, you will create 1099s for them.
How to Report W2 Income in QuickBooks?
In order to report, the W2 Income form in QuickBooks, first you need to create, setup, and print W-2 income forms.
Here is how you do it:
Creating W-2 Forms in QuickBooks
If a user wishes to issue the mandatory yearend tax forms in the QuickBooks Accounting software, a user needs to abide by the steps as stated here:
Step 1: From the primary menu, choose the option Employees. Then select the option known as Payroll Tax Forms and W-2s. Now you select Process Payroll Forms.
Step 2: Now, from the primary menu, choose Annual Form W-2 or W-3 wage and tax statement and click it. Now choose the option Create Form.
Step 3: Now enter the needed year details in the given option Select Filing Period beside Year, since W-2 forms are required to be printed and then press on the tab that states OK.
Step 4: The previously performed step will give rise to a notification. The notification will be QuickBooks Desktop one saves one version of every tax form. Press on the OK tab.
Step 5: Now adhere to the guidelines shown on the window to finish the process.
Setting up and Preparing for W-2 Forms
Step 1: First, you need to open the W-2 form. Select Employees, process payroll forms, Payroll Tax forms and W-2 forms. After that, select Federal Forms under the Select Form type window and then press on OK. Now choose Annual Form W-2 from the new window, known as Select Payroll Form windows, but make sure the year matches with the present year. Press on OK.
Step 2: Select Employees
Now, put a checkmark on the particular boxes that are beside the employees who require the W-2 form and require it for tax purposes. If, for some reason, the W-2 form is not issued for all the employees, just press on Mark All tab.
Step 3: Reviewing the W-2 Form
Choose the Edit tab to see the W-2 form issued for every employee chosen in the step above.
Step 4: Changing the details that are incorrect
If there is any editing requirement to be done on the form, then press on Save and Close tab in order to get back to the accounting software QuickBooks to make changes in the W-2 form itself. Open the particular form and edit the details and then press on Save and Close button to make the changes permanent.
Printing the W-2 Income Forms
In case the user wants to print the W-2 income forms on a paper that is pre-printed, they are required to place the W-2 forms in the printer. Now choose the Print Forms tab in order to print them. Now the user will be questioned whether the papers that are pre-printed are used or they are just blank papers.
Now, choose the forms that are anticipated to print under the screen area that is marked as Choose Item to Print. Finally, choose the Print tab to print the several forms and then choose Close Window when the forms are printed.
Reporting W-2 Form Income in QuickBooks
To report W-2 form income successfully in QuickBooks, you need to adhere to certain steps and procedures, like:
Step 1: Click QuickBooks. Now press Employees from the primary menu bar. Then click the option Payroll Tax forms and W-2. After that click Process Payroll Forms.
Step 2: Press on Federal Forms. Now click OK and then press Annual Form W-2/W-3. If there is any old version of the W-2 available in the system, the user will have an extra option to select the same before going for the W-2 form window. For this purpose, the user needs to checkmark the box against the particular employee and then press on the Review tab.
Step 3: In the related fields, add the data concerning the Employees. Such employee details include compensation, wages, pending taxes that include Medicare, etc.
Step 4: Enter details for State tax if State Income Tax is accumulated that comprise ID number, State Wages, State Income Tax, pending taxes, etc.
Step 5: When all the necessary data has been entered, analyze all the data and then choose the tab that is named ad Submit Electronically. This will let you fill out the form electronically.
Step 6: Finally, press on E-file federal form or the E-file in the notification screen. In the new window, add the necessary details of the state agency. When the form is complete for one employee, do the same for the remaining other employees in QuickBooks.
Coming to the conclusion, we hope that now you know how to report W-2 Income in QuickBooks and what measures you need to take to do it. In this article, we have discussed all the necessary information regarding the same.
However, for those of you who are still not comfortable to perform the steps alone, they can seek the help of QuickBooks experts.
Looking for a professional expert to get the right assistance for your problems? Here, we have a team of professional and experienced team members to fix your technical, functional, data transfer, installation, update, upgrade, or data migrations errors. We are here at Dancing Numbers available to assist you with all your queries. To fix these queries you can get in touch with us via a toll-free number
+1-347-428-6831 or chat with experts.
Is it Possible to Email the W-2 Form to the Employees in QuickBooks?
There is no straight method to email the form to the employees in QuickBooks Online. However, it is possible to download the PDF format W2 form. After that you can send to the respective employee manually.
Is there any reason why my W-2 Form print shows without any figure or amount?
It is a common problem, which appears when printing W-2 form for employees is complete. No amount is shown. The most probable reason can be that the employee for whom the form has been downloaded may have several pending local taxes.