W-2 Form: What Are Need to Understand and Read This IRS Form
Are you familiar of the W-2 tax 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.
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. Nevertheless, you can also find some taxpayers who are confused on some tax forms and W-2 is among them. 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. It is important that you read and understand all the things that are mentioned in the form and its implications to you.
Knowing More of the Wage and Statement 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. These forms showcased not the respective positions and work hours of workers but their total salaries. Actually, in the U.S. business enterprises are mandated to issue this form when they pay their workers at least six hundred bucks, in cash, taxable benefits 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.
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. These companies prepare six W-2 of these forms every worker. This is indeed lots of paperwork for them, right? There are two ways on how workers received W-2 tax forms, either manually or electronically.
Are W-2 Tax Forms Needed in Tax Filing?
The answer is yes, all workers need these forms in filing their taxes. The truth is, you need these forms when filing taxes even if you have last day pay stub. Usually, companies issued these forms to their employees every 31st of January yearly. In case you have queries on certain issues, be sure to ask your employers for clarification and guidance.