• As an employer, you are obligated to accurately withhold OASDI, Medicare and estimated income tax from your employees, document the withholding and forward the payments to the Internal Revenue Service. Additionally, you must keep an accurate accounting of all wages paid and all taxes withheld from the employee and provide the employee with a W-2 form each year.
  
  

Use Technology

• Keeping track of all the payments and withholdings is no easy task, especially if you try to do it manually. The Social Security Administration has provided a software program designed to help employers manage W-2 reporting and made it free for download on its website. You can download the software at the link in the Resources section on this page.
  
  

Ask for Help

• If you are having trouble with your W-2 reporting, you can contact the Employer Services Liaison Center at the Social Security Administration. Each state has one or more liaison offices. You can contact them by visiting Resource #2 on this page.
  
  

Don't Neglect Tip Income

• Your employees must report any tip income to you, if they receive more than $20 per week in tips. The form to use is IRS Publication 1244.
  
  

Learn the Rules

• The Internal Revenue Service publishes a guide to income tax reporting and withholding for employers, IRS Publication 15. You can view this publication using the link given in the Resources section.
  
  

Use an Approved Method for Computing Withholding

• IRS Publication 15 lists a number of methods for computing the amount you must withhold from the employee. You can download that information at the link in "Resources."