Do your employees all have their W-2 forms? This is a great time to check. There are a lot of reasons the IRS would get on your case, one of which is incomplete documentation. In the past, if you didn’t have a W-2 form, you could attach a paycheck stub with your return and that would be sufficient. Now, if you don’t have a W-2 form, you’ll need to complete two additional forms to explain why it’s missing. Ultimately, a missing W-2 can delay your tax refund, and no one wants that!
A W-2 form contains information regarding your total earnings for the year, and the amount of taxes paid. It also lists deductions such as FICA, and payments made to a health care plans. The Internal Revenue Service requires that every employee must be given his or her W-2 by January 31.
Mostly employees receive their W-2 forms in the mail. A few companies still include them with the final paycheck for January. Former employees are sent the W-2s by mail. Companies which have outsourced their payroll often distribute W-2s through the mail, as well.
Problems arise when the employer does not have the correct address of the employee. It often happens that an employee changes his or her address, and fails to notify the office. Sometimes, they do notify the office but the information is lost during processing. It is even more likely to happen when the payroll is being managed by another firm. In any case, this discrepancy results in a delay.
If you do not receive your W-2 by the end of January, you must contact your employer. If your contact information is incomplete, that should be taken care of. Your employer would gladly furnish you with a W-2 upon request, as it is a legal obligation. If there is a problem, you can also contact the IRS. They will intervene on your behalf and get you the required information.
