How to Read and Understand W-2 Like a Professional
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. However, there are also some who have trouble in understanding certain tax forms like W-2. 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. 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
Wage and statement form is one IRS tax form issued by an employer to its employee. Well, business enterprises have specific withholding reporting as well as insurance requirements for their employees which are different from 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.
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.
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. The truth is, companies are mandated to complete and to keep six W-2 tax forms for every worker. 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.
Are W-2 Tax Forms Needed in Tax Filing?
Yes, all employees need these W-2 forms when filing 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. Should you have concerns about these forms, don’t hesitate to approach your employer for information and guidance.