How to Read and Understand W-2 Like a Professional
Are you among those taxpayers who have trouble in understanding and reading W-2 form? Should you find this article interesting, then you are advised to continue perusing this article to get more information about this form and its significance to taxpayers.
With the deadline for tax filing just around the corner, there are numerous taxpayers who are prepping and 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. 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?
Actually, this is one type of IRS tax form issued by business enterprises to their workers. 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 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.
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.
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. The truth is, companies are mandated to complete and to keep six W-2 tax forms for 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.
Are W-2 Tax Forms Needed in Tax Filing?
Yes, all employees need these W-2 forms when filing taxes. All employees cannot file their taxes with their last pay stubs without completing their W-2 tax forms. 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.