Understanding and Reviewing Form W-2
Square Payroll generates and files Form W-2 to each each of your employees in January. These forms are available in gulp format all class under the Tax Forms check of your Square Dashboard to give you clock time to review the forms for accuracy throughout the year .
Although Square Payroll files W-2s on your behalf, you and your employees are creditworthy for confirming and ensuring the data on W-2s is accurate. In addition, each of your employees is creditworthy for filing their own W-2 individually with the IRS. See our year-end information for extra questions related to preparing for annual payroll tax filings .
1. Download your draft Form W-2s
To access your draft 2021 Form W-2s from January 1, 2021 to December 27, 2021:
- Visit Payroll > Tax Forms in your Square Dashboard.
- Click the Generate Draft W-2s button and select the Year .
- Click Download to download a .zip file of the draft Form W-2s .
- Extract the Form W-2s from the download .zip file ( read below for instructions on doing indeed on a Mac or Windows calculator ) .
Note: Square Payroll will begin processing draft Form 1099-NEC on December 27, 2021 .
To access your draft 2021 Form W-2s from December 27, 2021 to January 7, 2022:
- Visit Payroll > Tax Forms in your Square Dashboard .
- Click Download on the “ Wage and Tax Statements ” cable item to download a .zip charge of your Form W-2s .
- Extract the Form W-2s from the download .zip charge ( read below for instructions on doing so on a Mac or Windows calculator ) .
Note : You have until January 7, 2022 to make changes to your employees ’ full names, SSNs, and home addresses before the Form W-2s are filed with the Social Security Administration ( SSA ) .
Extract your Form W-2s from a .zip file on a Mac
On most Mac computers, you will find the .zip file containing your W-2s in your Downloads booklet. To access the charge, you can either open the Downloads folder directly or search in your finder for “ W2.zip ”. once you locate the .zip file, double suction stop on it. Your calculator will automatically extract the datum from the .zip file, creating a booklet which contains PDF copies of your W-2s .
Extract your Form W-2s from a .zip file on Windows
The steps for extracting your .zip file count on which translation of Windows you are running. To locate the file, search for “ W2.zip ” or look for the file in the Downloads folder of My Computer. Follow the links for .zip origin instructions on Windows 8 or 10 .
2. Verify your draft Form W-2 data
You and your employees are responsible for ensuring that the information on Form W-2 is right. The draft Form W-2s are available all year by going to Payroll > Tax Forms in your Square Dashboard. You will have until January 7, 2022 to review the draft forms for accuracy before they are filed and, if you opt into sending paper mail, mailed . We recommend reviewing the draft Form W-2s information sporadically throughout the class. Changes to your employees ’ s data, business information, and processed payroll runs will be reflected immediately upon re-downloading the draft Form W-2s .
We know that Form W-2 can be a bit daunting to read. Below is extra information on the fields in Form W-2 that should be reviewed .
Employee ’ s information can be updated by going to Payroll > Payroll Team and clicking on their profile. Please check for these park errors :
- entire name : check for misspelled names and avoid using nicknames or shortened name, titles before or after a mention, and name changes not reported to the Social Security Administration ( SSA ) .
- Social Security Number ( SSN ) : check mark for wrong or misprint ’ five hundred SSNs .
- home address : guarantee this reflects the employee ’ s stream address. If you opt into newspaper mail, Square Payroll will mail your Form W-2 to this address .
You can besides learn more about Form W-2 information verification by visiting the SSA web site .
If the data in the Business Info or Tax Info tabs of your Square Payroll explanation. If you receive an erroneousness when trying to update your taxpayer data, contact our Support team. Changes to your taxpayer name and taxpayer numbers may require extra trouble-shoot .
- Taxpayer address
- Federal or state of matter tax numbers
As you continue to process payroll throughout the year, the wages will update consequently on the draft Form W-2 when the pay up play is sent/processed, not after queuing the run. The wages reflected on the draft Form W-2 are a combination of :
Reviewing and understanding Form W-2
Below is information on the fields in Form W-2 :
- Box a : employee Social Security Number ( SSN ) .
- Box b : Employer Identification Number ( EIN ) .
- Box coke : employer name, address, and zip up code .
- Box e : employee list .
- Box fluorine : Employee mailing address .
- Box 1 : Wages, tips, and other compensation — Total calendar year taxable wages, tips, and other compensation paid to the employee .
- Box 2 : federal Income Tax Withheld — Total calendar class federal income tax withhold from employee wages.
- Box 3 : Social Security Wages — Total calendar year employee wages subject to employee social security tax, not including social security system tips .
- Box 4 : Social Security Tax Withheld — Total calendar year employee social security system tax withhold, including social security tax on tips .
- Box 5 : Medicare Wages and Tips — Total calendar year employee wages and tips subject to Medicare tax .
- Box 6 : medicare Tax Withheld — Total calendar year employee Medicare tax withhold
- Box 7 : Social Security Tips — Total calendar year employee tips reported .
- Box 10 : Dependent caution benefits — total dependent worry benefits that your employer paid to you or incurred on your behalf ( including amounts from a incision 125 ( cafeteria ) plan ). Any sum over $ 5,000 is besides included in box 1 .
- Box 11 : Nonqualified plans — This total is reported in box 1 if it is a distribution made to you from a nonqualified submit compensation or nongovernmental section 457 ( b ) plan .
Box 12 :
- D—Elective deferrals to a section 401 ( kilobyte ) cash or submit musical arrangement. besides includes deferrals under a SIMPLE retirement history that is depart of a section 401 ( kilobyte ) arrangement .
- E—Elective deferrals under a section 403 ( barn ) wage reduction agreement
- G—Elective deferrals and employer contributions ( including nonelective deferrals ) to a section 457 ( barn ) deferred compensation plan .
- W—Employer contributions ( including amounts the employee elected to contribute using a section 125 ( cafeteria ) design ) to your health savings account .
- AA—Designated Roth contributions under a segment 401 ( kilobyte ) plan .
- BB—Designated Roth contributions under a section 403 ( b-complex vitamin ) design .
- DD—Cost of employer-sponsored health coverage. The amount reported with Code DD is not taxable .
- EE—Designated Roth contributions under a governmental section 457 ( boron ) design .
- Box 13 : If the “ Retirement plan ” box is checked, especial limits may apply to the amount of traditional IRA contributions you may deduct .
- Box 14 : other — Employers may use this corner to report information such as express disability policy taxes withheld .
- Box 15 : State Employer Identification Number .
- Box 16 : express, wages, tips, etc. — total calendar year country taxable wages, tips, and other compensation paid to the employee .
3. Distribute Form W-2
You must provide your team with a forcible copy of their tax forms unless your employees consent to receive an electronic replicate. electronic copies are available for your team members to view, download, or mark from their on-line Square Payroll accounts. There are several ways for you to distribute your Form W-2s :
choose in to paper mail by January 7, 2022 and have Square mail these forms for you .
- In an attempt to go paperless, Square Payroll does not mail annual tax forms W-2 and 1099-NEC by default. If you prefer for Square Payroll to mail a physical replicate of Form W-2 to each of your team members, go to your Payroll Settings tab key and toggle on Send W-2s and 1099s via paper mail. Square will mail a tax form to the addresses on file for all team members paid in the anterior tax year .
Download, mark, and distribute forms to your team .
- You can access a digital copy of your W-2s under tax Forms in the Payroll yellow journalism of your Square Dashboard. You can then download, print, and distribute these to your team in person or by mail. Form W-2s are not available in the employer Square Payroll app .
Distribute electronically ( employee accept required ) .
- You may provide W-2s to your employees electronically if they give you permission to do therefore. To obtain consent, you can provide your employees with a instruction, such as “ I give license to receive all future Form W-2 statements electronically. I besides understand that if I wish to withdraw this permission at any time, I must inform my employer ( mho ) proactively. ”
- With accept, team members with on-line accounts can view, download, or print a copy of their form at any time by logging in to their Square Payroll report, or, you can email the form to your team member .
Note: If you opt to mail your employees a physical imitate of their W-2, Square Payroll will not resend the tax phase if an employee does not receive it ( due to invalid address or other reasons ) .
- If your employee has an invalid mailing address and your clientele has a valid mailing address, their Form W-2 will be returned to your clientele. You are then responsible for providing them with their copy of Form W-2 .
- If your employee has an invalid mail address and your business has an invalid mailing address, you are responsible for downloading the Form W-2s and providing them to your employees.
- In the exemplify that your employee ’ mho Form W-2 is returned to your clientele, ensure that your taxpayer address in Square Payroll is accurate. You can see what savoir-faire is on file or update the taxpayer address for your commercial enterprise in the Business Info section of your on-line Payroll Dashboard .
- Employees with on-line accounts can besides access a copy of their Form W-2 under their tax Forms tab or Square Team app .