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W-2 Form: What Are Need to Understand and Read This IRS Form
Do you have trouble in understanding as well as reading the 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. Nevertheless, you can also find some taxpayers who are confused on some tax forms and W-2 is among them. For those employees that need to pay their tax dues, then they should understand and should know how to read the Wage and Tax Statement tax form. 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. 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?
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, 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.
Other than the ones mentioned beforehand, this form also showcase other data like company name, address, zipcode, the taxes withheld from Medicare, federal income and Social Security, received tips and compensation received, dependents’ benefits 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. These companies prepare six W-2 of these forms every worker. It is definitely require lots of paperwork for companies. Works can receive these forms in two ways, 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. All employees cannot file their taxes with their last pay stubs without completing their W-2 tax forms. Business enterprises issue these W-2 tax forms to their employees annually, every January 31. If ever you have questions about something in these forms, then be sure to inquire from your employers.