Choosing the Best W2 Form Software In 6 Simple Steps

Step 1: Think about the Features You will need

Here are some unique features within W2 software. You can add more features to this list or remove some features from the list:

- Print W2 Forms for employees.

- Print W2 copy A and W3 for IRS

- Print W2 employee copies in PDF format, so you email them to recipients

- Print W2 and W3 forms on white paper (The software must be certified by SSA)

- Efile W2 and W3

- If you also have contractors, you may need the feature to print 1099-misc and 1096 forms

Also, you will want to think forward with your company requirements as you grow. You also want to list every feature and function that you currently use. Don't assume that they are included in all W2 software. Some are not.

Step 2: Prioritize the Features

Once you have your list of features, identify which features you absolutely must haveamd rank your optional features according to their priority. Put a "1" next to the features you feel are most important. Put a "2" next to features you'd like to have if all your number 1 features are met. Put a "3" next to features that are convenient, but optional and a "4" next to those that would be nice to have, but won't really affect yourdecision making.

Step 3: Look for W2 Software that Lets You Import W2 and 1099 Data From An External Source

If you already have your employee and W2 data in an excel document or other external source, make sure you purchase a software with import function so you do not have to enter data manually again..

Step 4: Look for an Easy-to-use Tax Software Interface

One of the most common reasons for deciding to change W2 software is that the software currently being used is too complicated and difficult to use. So you'll also want to look for a tax preparation solution that is easy to use. The key is the graphical interface-the window or screen that displays your options and accepts the data that you enter.

Look for screen-shots of the product on the box or website. Does the screen layout make sense to you? Can you find what you're looking for? If the layout makes sense to you and you can easily see the options you use most often, that's a good sign that the software will be easy to use.