What are the requirements for reporting wages to the government?
When employers in California are paying wages to their employees, they must also report them to the government. The requirements for reporting wages vary depending on the size of the employer and other factors. For businesses with 25 or more employees, employers must report wages to the federal government on Form W-2 on an annual basis. This form is used to report the total wages paid to an employee, as well as any taxes withheld from those wages. This form is sent out to the employee and sent to the Internal Revenue Service (IRS). Employers with fewer than 25 employees in California must report wages to the state government on Form DE-6. This form is similar to the W-2 form and reports the total wages paid to an employee, as well as any taxes withheld from those wages and reported to the Employment Development Department (EDD). This form must be reported on a quarterly basis. There are other forms and requirements that may have to be reported depending on the type of employer, such as contributions to state disability insurance, reporting of independent contractor pay, and others. Employers should ensure that they are aware of the reporting requirements for any wages that they are issuing. Failing to report wages correctly may result in penalties and fines from the government.
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