How to Manually Enter Data to File a Form W-2
We are breaking down step by step how to easily file a form w2 online with TaxBandits!
Once you’ve signed in to TaxBandits, select “Start New” in the upper right corner:
Select “Form”:
Select form W-2:
Verify the tax year you are filing for:
Click “Start Now” under “Manual Data Entry”:
Begin by providing the business information in Sections b and c.
You can enter the information manually, or you can select a business from your address book by clicking “Select Business”
Box d—Control number. You may use this box to identify individual Forms W-2. You do not have to use this box.
If you have already added the recipient to the business, you can search for the employee by name or SSN or by selecting the “Address Book Lookup” icon or by adding the Employee Name or SSN in the search bar.
If you have not added the recipient, you can manually enter the data in each line.
Check the box if you want to provide the recipient with online access to their form
Box 1: Wages, tips, other compensation.
Show the total taxable wages, tips, and other compensation that you paid to your employee during the year. However, do not include elective deferrals
Box 2: Federal income tax withheld.
Show the total federal income tax withheld from the employee’s wages for the year. Include the 20% excise tax withheld on excess parachute payments.
Box 3: Social security wages.
Show the total wages paid (before payroll deductions) subject to employee social security tax but not including social security tips and allocated tips.
Box 4: Social security tax withheld.
Show the total employee social security tax (not your share) withheld, including social security tax on tips. For 2021, the amount should not exceed $8,853.60 ($142,800 × 6.2%). Include only taxes withheld (or paid by you for the employee) for 2021 wages and tips.
Box 5: Medicare wages and tips.
The wages and tips subject to Medicare tax are the same as those subject to social security tax (boxes 3 and 7) except that there is no wage base limit for Medicare tax. Be sure to enter tips that the employee reported even if you did not have enough employee funds to collect the Medicare tax for those tips.
Box 6: Medicare tax withheld.
Enter the total employee Medicare tax (including any Additional Medicare Tax) withheld. Do not include your share. Include only tax withheld for 2021 wages and tips.
Box 7: Social security tips.
Show the tips that the employee reported to you even if you did not have enough employee funds to collect the social security tax for the tips.
The total of boxes 3 and 7 should not be more than $142,800 (the maximum social security wage base for 2021). Report all tips in box 1 along with wages and other compensation. Also, include any tips reported in box 7 in box 5.
Box 8: Allocated tips
If you operate a large food or beverage establishment, show the tips allocated to the employee. See the Instructions for Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips. Do not include this amount in boxes 1, 3, 5, or 7.
Box 9: Do not enter an amount in box 9.
Box 10: Dependent care benefits
Show the total dependent care benefits under a dependent care assistance program paid or incurred by you for your employee.
Box 11: Nonqualified plans.
The purpose of box 11 is for the SSA to determine if any part of the amount reported in box 1 or boxes 3 and/or 5 was earned in a prior year. The SSA uses this information to verify that they have properly applied the social security earnings test and paid the correct amount of benefits.
Report distributions to an employee from a nonqualified plan or nongovernmental section 457(b) plan in box 11.
Also, report these distributions in box 1. Make only one entry in this box. Distributions from governmental section 457(b) plans must be reported on Form 1099-R, not in box 1 of Form W2.
Box 12: Codes.
See instructions on Codes. Enter the total of all amounts reported with codes D through H, S, Y, AA, BB, and EE in box 12 on W2 Form . Do not enter a code.
Box 13: Checkboxes.
Check all boxes that apply.
Box 14: Other.
If you included 100% of a vehicle’s annual lease value in the employee’s income, it must also be reported here or on a separate statement to your employee. You may also use this box for any other information that you want to give to your employee.
Complete State information if necessary:
Boxes 15 through 20—State and local income tax information
Use these boxes to report state and local income tax information. Enter the two-letter abbreviation for the name of the state. The employer’s state ID numbers are assigned by the individual states.
The state and local information boxes can be used to report wages and taxes for two states and two localities. Keep each state’s and locality’s information separated by the broken line. I
f you need to report information for more than two states or localities, select “Add New State”. To add additional localities, Select “Add More Locality”. Contact your state or locality for specific reporting information.
When the form is completed, select “Save and Continue”
You will be directed to verify the USPS Recommended Address, ensure the address for the recipient is accurate, and select “Continue”
Now you can choose to begin a new form, edit or preview the recently filed form, adjust your services, or continue filing.
After clicking “Continue” Update any errors, then click “Continue”:
Select the business(es) you are filing for, review your order details, then click to “Complete Your Order”:
When using prepaid credits, there is no need to enter or process a credit/debit card to file. Simply select “Confirm and Transmit”:
*Not sure how to purchase credits? Check out our blog here.
Want to see steps for other business types, forms, or features? Comment below and we’ll make your request a future blog!
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