W-2 Form: What Are Need to Understand and Read This IRS Form
Are you among those taxpayers who have trouble in understanding and reading 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.
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. 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. Whether you are the one preparing the tax return or you have tired some professionals to do it, you need to understand what are written in the W-2 form. Always remember the significance of reading and understanding all the stipulations found in these forms and its impact to taxpayers.
Knowing More of the Wage and Statement Form
Actually, this is one type of IRS tax form issued by business enterprises to their workers. Well, business enterprises have specific withholding reporting as well as insurance requirements for their employees which are different from 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 of America, companies are ordered to issue their employees W-2 forms if they pay them at least six hundred bucks, in taxable benefits, cash or its corresponding equivalents. 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.
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 These Forms Needed in Filing Taxes?
The answer is yes, all workers need these forms in filing their 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. In case you have queries on certain issues, be sure to ask your employers for clarification and guidance.