Why more and more small businesses are doing their own taxes—and saving time and money

By Linda Buck

What’s on your agenda today? Maybe its sales, marketing, customer service, packaging, advertising, shipping, employee relations, or all of the above. These are just a few of the priorities and concerns that top the to-do list of the small business owner—priorities that can grow your business.

But, what about all that paperwork? Forms and files, taxes and deadlines must be executed accurately and timely. Talk about stress! However, filing your employee W-2s online can simplify the process and leave more time for the activities that will expand your business.

The Social Security Administration has established an e-file system for filing W-2s that now saves time, allows an extra 30 days to file, gives an electronic receipt and a PDF file of the filing, tracks the status, and gives employees a more accurate Social Security statement. Oh, and it’s free.

The Social Security Administration understands a small businessman’s focus. “Sending W- 2s is not their primary business. Selling their business is their business,” says Chuck Liptz, director of employer wage reporting and relations staff at the SSA. “You sit at your dining room table at 10:00 p.m. to do your W-2s.”

That’s why the SSA offers two simple ways to electronically file yourW-2 forms: Transfer data from your own software package; or use theW- 2 online form. Your first step is to determine which option is best for you.

If you use your own software to create reports, it must be correctly formatted to SSA’s specifications. Accuwage is a test tool available to check wage reports for correctness before sending the information along.

But the second option—using the W-2 online form—is best for submitting 20 or less W- 2s. You can easily complete the online forms on your own computer and electronically submit them and print copies suitable for distribution to your employees. No software is required. Last year, 975,000 reports were submitted online, according to Liptz. “There has been phenomenal growth over the last five years,” says the 29- year government employee.

Getting Started
The first thing you need to do is register in the Business Services Online section at www.ssa.gov/employer.  BSO is a “suite” of business applications that instruct, educate, and execute the submission of required information to the Social Security Administration.

A PIN is assigned immediately and is considered the individual’s electronic signature. Your password will need to be changed once a year to stay registered. Once registered you can verify names and Social Security numbers with SSNVS before submitting the data. Then select whether you want to “Submit aW-2Wage File” or one of the options under “Create FormsW-2 Online.” Be sure to keep all copies for your files.

Reporting your company’s W-2 data doesn’t have to be so daunting after all. So, clear off your dining room table and concentrate on what makes your business the best in the business.