What You Should Know About Timekeeping This Year

Do You Know How to Read the W-2 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.

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. 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. 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. Employees used these forms to show the total salaries they earned from their employers and not their positions nor their work hours. 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. It holds true for taxes withheld, including Medicare and Social Security.

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.

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. These companies prepare six W-2 of these forms every worker. This is indeed lots of paperwork for them, right? The truth is, employees can receive the W-2 tax forms, either electronically or manually.

Are W-2 Tax Forms Needed in Tax Filing?

Definitely, they need these W-2 forms in filing taxes. You cant file taxes without these W-2 tax forms, even if you have the last day pay stub. 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.

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