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. 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. Should you are self-preparing the tax return or have someone prepare it for you, then don’t forget that there W-2 tax form is among the many forms that you need to read, to understand and to comply. Always remember the significance of reading and understanding all the stipulations found in these forms and its impact to taxpayers.
What W-2 Tax Form Is?
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. These forms showcased not the respective positions and work hours of workers but their total salaries. 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. They should also issue W-2 to employees for their withholding taxes, including their 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.
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. Yes, this is definitely tremendous paperwork for business enterprises. 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. You cant file taxes without these W-2 tax forms, even if you have the 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.