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.
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. Should you be among the numerous employees out there, then W-2 is one of the tax forms that you need to prepare and to 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 W-2 Tax Form Is?
Wage and statement form is one IRS tax form issued by an employer to its employee. Companies have particular insurance, withholding and reporting requirements for their workers which are somewhat different from that of independent contractors. In here, employees affixed not their position or time worked but their earnings. 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. 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.
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. The truth is, companies are mandated to complete and to keep six W-2 tax forms for every worker. This is indeed lots of paperwork for them, right? Works can receive these forms in two ways, either electronically or manually.
Are These Forms Needed in Filing Taxes?
The answer is yes, all workers need these forms in filing their 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. Should you have concerns about these forms, don’t hesitate to approach your employer for information and guidance.