Running and maintaining a business is no easy feat. It takes a lot of work to keep an enterprise running. However, probably the most challenging part of any business is accounting. Finance and its allied departments form the backbone of any organization. To keep track of all the accounting processes is a hard nut to crack. Once your business is up and running, you will need some sort of software that takes care of all your accounting needs.
This is where QuickBooks Desktop comes in. Automated software helps you manage your business accounts better as compared to doing it manually. For keeping track of the financial statements and transactions and to better organize them, QuickBooks Desktop is used extensively.
Why is QuickBooks so extensively used in accounting?
In businesses, QuickBooks finds its prominence due to its simplicity and ease of using it. It is a software that is often compared with that of the ERP solution. It has add-ons that make it essential and heavily beneficial to employ. These add-ons find usage in generating automated payrolls, CRM’s, etc. QuickBooks Desktop comes in a number of versions that are differentiated from each other and serve different purposes. QuickBooks also allows its users to record bank transactions with the help of feeds from the bank’s online banking feature.
This also helps you to stay abreast of the developments in your account and makes you better coordinated with the bank. Similarly, QuickBooks allows you to easily understand the payrolls and roll out the taxation process very easily. The QuickBooks Desktop coordinates with the revenue that needs to be paid as taxes and helps the generation of W-2 forms very easily.
This article is dedicated to making you understand the concept of W-2 forms. What is the relevance of a W-2 form, and how is one generated? Let us dive deep into it.
What exactly is a W-2 form?
Citizens of any country earning a certain amount (taxable income) are liable to pay taxes annually. The amount that they pay to the Government is then used by the latter to develop the state, country, etc. When you are an employee of a company, your employer automatically deducts your taxes from your paycheck. The company does the calculations for you. Doing this, an employer has to give a detailed account of how much of the amount is being deducted from the employee’s wages as taxes.
This is where a W-2 form .has a role to play. A W-2 form helps you gain insight into the deductions from the employee’s wages. It gives you a detailed account of how much is dedicated from the employee’s account on an annual basis. This deducted amount is then used to file the taxes. QuickBooks Desktop allows an employer to streamline this tax deduction process.
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Why is it necessary to withhold taxes?
As an employer, you are bound to deduct some amount from your employee’s wages as taxes. The amount that is deducted goes to the IRS at the end of each month. If the employee is not aware that a particular amount from his paycheck is going towards taxes each month, then at the end of the financial year, when he/she is sitting to calculate the liable taxes, then the W2 form can help him/her calculate the exact amount and also how much has been paid in the form of taxes.
Why should you attach a W-2 tax form?
It is extremely crucial to attach a W-2 form at the end of every year when you are giving payslips to your employees. It gives you control over the amount that has been counted as tax and deducted from the return. Also, if you are an employee, the W-2 form will help you comprehend the tax deductions that have been made from your payslip. At the end of the fiscal year, when you are giving out the payslips, you must attach a W-2 form with them.
Things to take note of before and after printing the W-2 forms
1.) Save the draft- Saving the draft of the W-2 form is important. In the payroll tax form window, you need to click on Save as pdf option. This is usually located at the bottom left of the screen. Thereafter, select your location to save your form as a draft. Lastly, click on the Save button to save it.
2.) While e-filing or printing in QuickBooks Desktop, it automatically archives W-2 forms- On the bottom left side of the payroll tax form window, when you choose the e-filing option or select the print box, QuickBooks, by itself archives your W-2 form and saves the form in the PDF format in a default location.
3.) Accessing the archived form with no active subscription of Payroll- In case your subscription plan has expired, you can look for the archived W-2 form in the system without opening the QuickBooks application. The location where this form is located is C:\Users\Public\Documents\Intuit\QuickBooks\Sample Company File\QuickBooks XXXX(Company name) Tax Form History. You will need to select the folder that has your W-2 form. The folder would have 941, W-2 written with its name.
Requirements for printing in QuickBooks Desktop
Before you start printing the W-2 form, it would help to know the requirements for printing the same. The following would be required for the printing of the form;
- First and foremost, you should have black ink and printable paper.
- You must ensure that the version of QuickBooks you are using is supported by your system.
- You should have the requisite W-2 documents.
- Make sure you have an active payroll standard or enhanced service of QuickBooks.
- You should have blank or perforated paper.
- Use the preprinted forms for the inkjet printer.
- Extremely important that you have the latest Payroll tax table.
Steps to print W-2 forms with QuickBooks Desktop
Printing a W-2 form is quite easy. It doesn’t require any complicated steps and can be handled well. So, let’s go into the steps that can help generate a W-2 form. Following are the required steps;
- Firstly, open the QuickBooks software on the desktop.
- Secondly, go to the Payroll Tax center.
a.) Thirdly, Choose the employees option and then click on the Payroll Centre.
b.) Thereafter, go to the File Forms tab and choose the View/Print forms & W-
c.) Furthermore, enter the Payroll PIN.
- After this, click on the next W-2 tab.
- Consequently, a list containing the employee’s details will come up in a dialog box. There, choose the name of the employee whose form you want to generate.
- Thereafter, select the open option or the Save selected option.
- On the print instruction page that will appear, you need to provide the reason for printing the form.
- Subsequently, a print dialog box asking you to load the paper in the printer will appear. Do accordingly.
- Furthermore, a detailed version of the file will open in a pdf file format. If everything is correct, go ahead and print the form.
- Lastly, access the file and then choose the Print option.
We have provided all the instructions that can help you in printing the W-2 tax form. However, if you are not a Pro at QuickBooks, you can very easily get stuck in between. If you encounter any such problem, we would advise you to get in touch with the QuickBooks experts. We are a bunch of professionals who are adept at solving such QuickBooks-related issues. Feel free to dial our number or send us a mail at email@example.com. We will surely help!