Tips for an Easy W-2 Season

Carolyn Taylor Payroll & Tax

Update Your Payroll Records – Ask employees to verify their name and Social Security Number (SSN) before you close out your books and prepare the Forms W-2. If a name has changed, continue to use the old name and tell the employee to contact Social Security to obtain an updated card. Using a new name before the employee updates Social Security’s records may prevent the posting of earnings to the employee’s earnings history. Change your payroll records only after the employee obtains an updated Social Security card with the new name.

Avoid These Common Errors – Incorrect or misspelled names; incorrect SSN; using nicknames or shortened names; titles before or after the name; and name changes not reported to Social Security.

Verify Wage, Tax and Benefit Date – Ensure that other special tax items have been updated and reported, such as Other Compensation, Third-Party Sick Pay, Taxable Fringe Benefits, Tip Allocation information, and Dependent Care Benefits.