Churches need to report each employee's taxable income and withheld income taxes as well as Social Security and Medicare taxes on Form W-2, and furnish copies B, C, and 2 of the 2019 Form W-2 to each employee by January 31, 2020. Copy A should be submitted to the Social Security Administration by January 31, 2020, along with Form W-3, Transmittal of Wage and Tax Statements.
If your employees give their consent, you may be able to furnish Forms W-2 to your employees electronically. See IRS Publication 15-A for additional information.
Although W-2s are not difficult to prepare, there are some tips you should know.
First, be sure to add cents to all amounts. Make all dollar entries without a dollar sign and comma, but with a decimal point and cents. For example, $1,000 should read "1000.00." Government scanning equipment assumes that the last two figures of any amount are cents. If you report $40,000 of income as "40000," the scanning equipment would interpret this as 400.00 ($400)!