Are you familiar of the W-2 tax form? For those who have concerns and questions about the W-2 form, then the best thing that they should do is to peruse this write-up further to obtain an overview of this specific IRS form and its importance.
With the deadline for filing of taxes nearing, it is normal to see myriad men and women cramming to have it done timely. Nevertheless, you can also find some taxpayers who are confused on some tax forms and W-2 is among them. In case you are an employee, then surely W-2 tax form is one of the vital tax forms that you should understand and should 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. 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
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. In here, employees affixed not their position or time worked but their earnings. 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. They should also issue W-2 to employees for their withholding taxes, including their 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.
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. 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 These Forms Needed in Filing Taxes?
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. Should you have concerns about these forms, don’t hesitate to approach your employer for information and guidance.