A W-2 tax form is a statement prepared by the employers for their employees. This form includes details about an employee’s total earnings, Medicare earnings, Social Security earnings, and federal and state taxes that are withheld by the employee.
Before you give the W-2 tax form to your employee, you should know about these important details of W-2 tax forms.
Different parts of the W-2 tax forms
W-2 tax forms contain numerous parts. Here is a brief overview of different parts of the W-2 tax form.
Where can I find W-2 tax forms?
One cannot copy the W-2 tax form from the Internet. As mentioned earlier, the Copy A of tax forms is printed on a special type of paper that can be scanned using a laser scanner, which cannot be found on any website. Only official forms must be used here. You can talk to your tax preparer and get your official W-2 tax forms.
What information is required to be completed in W-2 tax forms?
Information about your business This will include your business name, business address, employer ID number, and business State Tax ID number.
Information about your employees You need to mention the Social Security Number or other tax identification number of your employee, the name and address of your employee, and the like.
Information about employee income The information about total wages and withholdings of each employee for the last year has to be reported. Total Medicare wages, Social Security tips, total Social Security wages, total wages, and other compensation.
Apart from these, you also need to state information on retirement plans and special benefits. Box 12 and 13 of W-2 tax forms talk about retirement plans and employee benefits plans respectively.
What if there are errors made on a W-2 form?
It is recommended to check for common mistakes in tax forms before you send them off to your employees. However, if you have submitted incorrect forms to Social Security Administration, then you must fill and complete W-2c forms. Ensure that you do not miss out on the final deadline for submitting the revised information along with the W-3 transmittal form, which needs to be resubmitted.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.