Payroll: 10 Mistakes that Most People Make

Do You Know How to Read the W-2 Form

Do you have trouble in understanding as well as reading the W-2 form? For those who have concerns and questions about the W-2 form, then the best thing that they should do is to peruse this write-up further to obtain an overview of this specific IRS form and its importance.

With the deadline for tax filing just around the corner, there are numerous taxpayers who are prepping and cramming to have it done timely. Nevertheless, you can also find some taxpayers who are confused on some tax forms and W-2 is among them. In case you are an employee, then surely W-2 tax form is one of the vital tax forms that you should understand and should comply. 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. Keep in mind that you need to understand all the contents of these tax forms and its effects to taxpayers.

What Is the Wage and Statement Tax 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. Employees used these forms to show the total salaries they earned from their employers and not their positions nor their work hours. In the United States, companies are obliged to issue W-2 form to employees who are paid at least six hundred dollars, whether in taxable benefits, cash or its equivalent. It holds true for taxes withheld, including Medicare and Social Security.

These forms come in table forms that showcases other information aside from the ones detailed above like company name, department where the employee belongs, address, tax withheld from Medicare, Social Security and Federal income, tips and other compensation, benefits of dependents and nonqualified plans.

Well, employees should not worry if they are issued W-2 even if they are paid less than what is required because it is easier for companies to keep 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? The truth is, employees can receive the W-2 tax forms, either electronically or manually.

Are W-2 Tax Forms Needed in Tax Filing?

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. Usually, companies issued these forms to their employees every 31st of January yearly. If ever you have questions about something in these forms, then be sure to inquire from your employers.

6 Facts About Timekeeping Everyone Thinks Are True

6 Facts About Timekeeping Everyone Thinks Are True