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2014 W 2 Forms

in this video presentation I'm going to show you how to fill out at W 2 W 2 is the annual report that an employer has to send out to all of their employees it basically gives the employee the information that they need to fill out their own personal tax return so it's got the w2 includes all wage information all taxes that have been withheld it might include things like any dependent care that was withheld from your paycheck or any deductions for a retirement plan that was withheld from your paycheck or maybe some union dues basically it tells you anything that has to do with your pay okay so it basically tells you your gross pay that's taxable as well as any taxes that have been withheld or any other deductions that have been withheld okay so I have given you this w2 example in angel and then what we're going to do is we're going to actually complete a w-2 so this is what a w-2 looks like time and so we're going to actually use this w2 example to complete this w2 so here I've given you an employer data and then I've also given you an employee data so we're going to do a w-2 for Kelly wreaths I'm giving you her payroll data she's single with one allowance so she gets paid for 15 weekly I've given you her social security number she has a deduction for her 401k plan of $50 a week she's had 950 dollars in dependent care payments taken out this year and she's also had $50 in unities taken out of her pay this year and then I've also given you certain taxes that have been withheld Social Security Medicare state income tax local income tax and what I want to do is we're going to actually calculate the federal income tax that's going to be taken out so first let's do that and then we'll complete our w-2 so here what I'm going to do is we've got for 15 a week okay that she gets paid now one thing we need to take out anything that is not taxable before we calculate our tax so here we've got this deduction for 401 K well that is going to come out pre-tax so we're going to subtract out the $50 okay and when we do that we get we get three hundred sixty-five dollars so this is what we need to look for on our wage bracket table okay so again she gets paid weekly and she's single so what I've done is I've come here and I've got the single weekly wage bracket so this is from your your tax tables and appendix t in your textbook and again we're looking for 365 and how many was holding allowances that she has just warmin okay so then we're going to come here we get 365 we've got one withholding allowance so therefore her tax per week is 29 okay so we're going to come back we've got 29 per week but again w2 is an annual forum so 29 a week times 52 weeks would give us 15:08 for the year okay so that's our outfit it's gonna be 1508 okay all right so let's look at our done YouTube first let's just fill in the the easy stuff okay first in box a you want to put in the employee social security number so I gave that to you as turn this on Oh 0:08 804 okay and then in Box B you've got your employer identification number I gave you that here as zero zero zero zero zero zero 917 so let's add that in okay and then the employers name and address and zip code I gave you all of that information here so we can add that in its Queens Court and on 4,800 River Road and that's in Philadelphia Pennsylvania one nine one one three control number is something that is for the employer so let's say you had two hundred and sixty-five employees you might want to put okay this is employee number one okay so the IRS doesn't really worry about these control numbers so much this is again for the employer to kind of keep track of their W T's okay and then we've got Kelly Reese put her name there I told you that she lives at 54 Grayson place in Philly and so that's in Philadelphia okay so that's all you have to do for that okay so now let's get back over to these boxes for the numbers okay so the first box is all about our wages from time so here what you're doing is you are putting in what is Twitter our taxable wages for federal income tax so if we look back over here she gets 415 a week but remember part of this 415 is not taxable $50.00 of it is not taxable dependent care payments and hinges do not affect the taxability of here your wages okay but this deduction for 401k plan that is not taxable so therefore we need to take come here and take 415 minus 50 and again that was 365 and how often does she get paid that weekly so 365 times 52 weeks means that her annual salary that's taxable was 18,000 980 so I'm going to come back over here and put in our 18,000 980 okay and then we already calculate the federal income tax withheld what we calculated as 1508 okay so I'm going to come here my federal income tax is 1508 okay now for Social Security the 401k deduction is not going to affect that okay so Social Security all of your wages are taxable for that okay even the ones that are deducted for your retirement plans so let's figure out how much is taxable for that so in that case we've got 415 times 52 okay because she gets paid 415 a week and so therefore her salary before any 401k deductions was 21,000 580 so we'll come back here 21,000 580 okay and then let's put in our Social Security tax withheld it's 1337 96 I got that by just taking the twenty-one five eighty times six point two percent and so therefore that was 1337 ninety-six the Medicare wages and tips is going to be the same taxable amount as Social Security because she had not met the cap if she had met the cap for Social Security you would only put the cap amount here hundred thirteen thousand seven hundred and twenty thirteen okay and so it'd be twenty-one five eighty and Medicare without is thirteen three 1304 okay she wouldn't have any Social Security tips or allocated tips but she did have dependent care benefits we had to pendant care benefits of how much nine fifty for the whole year so we'll put in nine fifty here okay you don't have to worry about box eleven for non qualified plans but box twelve a 12v and 12 C and twelve D are all for things that are informational to the taxpayer to your employer so there is actually in your book okay the reference guide for box 12 codes let me see what page this was on sorry I don't remember so 423 is where this is and so what you're going to do is these are box 12 codes so this is informational and so for Kellie Ruiz she had a 401k withdrawal every paycheck and so what we can do is we can tell her about that okay so we can put okay Cody and so then she'll know that that is a section 401 K cash or deferred arrangement and then come back over here and put how much so how much was taken out 50 a week so 50 times 12 is going to give you I'm sorry times 12 not times 1250 times how many weeks around a year 52 so 50 times 52 is going to be 2600 okay so therefore I'm going to come here and I'm going to put a code D here and then 2600 so therefore that means she knows that okay 2600 was taken out from a 401 K let's look back at these twelve box twelve codes there's other things that you might see our group term life insurance over 50,000 that becomes taxable in that case if the employer is paying for it maybe you have a set plan or a 403 B instead or maybe you have a simple plan so it would be code s okay maybe you have a health savings account deduction so that would be count W all right so this is if you have a Roth 401 K it's going to be code a a okay so these are it's basically just for informational things that the employer probably wants to know about okay so you use these codes to kind of help it help you make it more on your WT all right also she has a retirement plan so I'm gonna come here and check retirement plan and you could have multiple codes if she had a health savings account as well you'd also put a code for the health savings account and the amount so you could have multiple codes and boxes here for box 12 then for box 14 this is other kind of information that you might want to put maybe they may be the employer paid some of their education maybe they got educational assistance okay or maybe in our case she had union dues taken out and that doesn't affect her taxes but it might she might or it doesn't affect how much tax she had taken out here what how much of her wages was taxable but she might be able to take a deduction or a credit or something like that for them on our tax return so it's good to inform an employee about it so we're going to add union dues here in box 14 and just put the amount which was $50 okay so that's just kind of other as a compliment or you kind of think to your employer employees okay so then we've got our w2 also is sent to the state okay and so if we're here we're going to include state things on there so here we're in Pennsylvania and then up here I gave you the Pennsylvania state identification number so we'll add that in okay and the state wages and tips we're going to assume that it's the same as what your Social Security or Medicare is I don't know what the 401k rules are for Pennsylvania so we're going to assume that it's that and then our state income tax I told you was if we look down here it's 660 to 48 okay and then we don't have this in Georgia but some places have a local income tax like in New York they even have a borough income tax but obviously Philadelphia has a local income tax so Pennsylvania has their their tax and then Philadelphia hasn't their own like city tax and so here are taxable wages again our twenty one thousand five hundred eighty and then the amount withheld was eight forty seven sixty and then you might want to put the locality name which in this case would be Philadelphia and so that is how you can how you complete a double YouTube