Do You Know How to Read the W-2 Form
Are you among those taxpayers who have trouble in understanding and reading 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 filing of taxes nearing, it is normal to see myriad men and women cramming to have it done 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. 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. If you are the one preparing the tax returns or you hire professional tax service providers to do you for you, then W-2 form is among the numerous forms that you need to understand and to complete. 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?
When we talk of W-2 form, we refer to one kind of tax form from the Internal Revenue Service that is issued by companies to their employees. Companies have particular insurance, withholding and reporting requirements for their workers which are somewhat 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 of America, companies are ordered to issue their employees W-2 forms if they pay them at least six hundred bucks, in taxable benefits, cash or its corresponding equivalents. 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.
For those who received W-2 even if they received less than what is required, they should not worry because there are business enterprises who give these forms routinary to all their employees. These companies prepare six W-2 of these forms every worker. It is definitely require lots of paperwork for companies. The truth is, employees can receive the W-2 tax forms, either electronically or manually.
Do Employees Need W-2 Tax Forms in Filing Their Taxes?
Yes, all employees need these W-2 forms when filing taxes. You cant file taxes without these W-2 tax forms, even if you have the 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.