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. 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. 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.
Knowing More of the Wage and Statement Form
When we talk of W-2 form, we refer to one kind of tax form from the Internal Revenue Service that is issued by companies to their employees. 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. 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. It holds true for taxes withheld, including 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.
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. 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?
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. Business enterprises issue these W-2 tax forms to their employees annually, every January 31. In case you have queries on certain issues, be sure to ask your employers for clarification and guidance.