Do You Know How to Read the W-2 Form
Do you have trouble in understanding as well as reading the W-2 form? If you are confused about it, then you should continue reading this article to get some ideas and information on this particular form.
Since the tax season is just around the corner, there are lots of companies, ordinary individuals and employees who are cramming to get it done and file it timely. Nonetheless, there are also some taxpayers who have issues and problems when it comes to understanding and reading certain tax forms like the W-2 or the Wage and Tax Statement. For those employees that need to pay their tax dues, then they should understand and should know how to read the Wage and Tax Statement tax form. Whether you are the one preparing the tax return or you have tired some professionals to do it, you need to understand what are written in the W-2 form. Always remember the significance of reading and understanding all the stipulations found in these forms and its impact to taxpayers.
Knowing More of the Wage and Statement Form
Wage and statement form is one IRS tax form issued by an employer to its employee. Businesses have certain insurance, reporting and withholding requirements for their workers which are different from that of independent contractors. In here, employees affixed not their position or time worked but their earnings. Actually, in the U.S. business enterprises are mandated to issue this form when they pay their workers at least six hundred bucks, in cash, taxable benefits or its equivalent. This form is also used in noting the employees’ withholding taxes, Social Security and Medicare.
There are other information showcased in W-2 tax form asise from those mentioned above and these are the company name, its address, zip code, taxes withheld from federal income, Social Security and Medicare, other compensation received, tips as well as the nonqualified plans and dependents’ benefits.
If you are among those who earn less than $600 and yet you are given W-2 form, don’t worry because it is already routinary and easier for these companies to keep these file these records. Well, business enterprises need to prepare six W-2 tax forms for each employee. This is indeed lots of paperwork for them, right? There are two ways on how workers received W-2 tax forms, either manually or electronically.
Do Employees Need W-2 Tax Forms in Filing Their Taxes?
The answer is yes, all workers need these forms in filing their taxes. The truth is, you need these forms when filing taxes even if you have last day pay stub. Employees issue W-2 tax forms to their workers yearly, every January 31. If ever you have questions about something in these forms, then be sure to inquire from your employers.