Form W-2
Definition
An IRS form reporting wages paid to employees and taxes withheld. Employers must provide W-2s to employees by January 31 and file copies with the SSA.
Related Terms in US Tax
Sales Tax Nexus
The connection between a business and a state that requires the business to collect and remit sales tax. Nexus can be physical (office, warehouse) or economic (exceeding revenue/transaction thresholds). HelloBooks includes a nexus calculator.
Section 179 Deduction
An IRS provision allowing businesses to deduct the full purchase price of qualifying equipment and software in the year of purchase, rather than depreciating over time. HelloBooks includes a Section 179 calculator.
Estimated Quarterly Taxes
Quarterly tax payments made by self-employed individuals and businesses to cover income tax and self-employment tax. Due April 15, June 15, September 15, and January 15.
Form W-9
The IRS form on which a US person gives their name, address and taxpayer identification number to a business that will pay them, so the payer can report those payments correctly. Collecting a W-9 before the first payment is what makes accurate 1099 reporting possible, and a missing one can trigger backup withholding.
Stop memorising terms — let HelloBooks do the work
AI-assisted bookkeeping that handles invoicing, GST, reconciliations, and reports automatically. Free to start.