A w-2 Form is an internal revenue service, also known as an IRS tax form that reports wages paid to the employees and taxes withheld from them. The IRS requires an employer to report information on salaries or wages made to their employees.
W-2 forms are an important part of many people’s tax preparation procedures. The employer is required to send the w-2 form before the end of the first month of every year after the annual tax period. That is usually on December 31-previous year. This ensures that the employee has the w-2 form on time.
Do I Need Help While Filling The W-2 Form?
The first thing to know is that your employer does not only prepare your form; the Internal Revenue Service and the social security authority must also go through it, making the process open and free from manipulation by either under reporting once wages or salaries.
The w-2 form consists of the following information that you are supposed to fill regarding the Form instructions and your basic employment information.
You can verify your name and your social security number on the identifying information section that serves as a tracking feature. If your reported income does not match with the information filled in the w-2 form, the IRS will have to match the information from your employer to confirm their figure match with theirs.
When you are through with filing your returns remember that a copy of your w-2 form must be affixed. There are two methods of attaching your w-2 depending on which channel you are using; If you are using Turbo Tax, your W-2 form will be sent automatically with the tax return, but if you are using the mailing method, you are required to attach the w-2 form together with the tax return.
Who Receives AW-2 Form
Only the employees receive the form, if you are an independent business person or self-employed in that case, then you will receive an earnings statement in a form known as Form 1099.
However, before submitting your W-2 form, it is important to review the information provided to avoid errors during matching up its records with what you’ve earned and what you have reported.
The form’s structure is divided into boxes that report various items relating to one’s income. The first box entails the annual wage and salary with the amount of federal tax withheld from it. If you are an employee, your income is only a subject to social security tax; it is possible to find that the third box reports an amount less than your annual wage.
How Do Employers fill my W-2 Form?
Your employer subtracts a certain amount from your paycheck redirecting it to the federal income taxes; those deductions are consigned by the IRS throughout the year. IRS requires every taxpayer to make intermittent payments throughout the year.
W-2 forms are vital in improving a country’s economy! Congratulations for contributing to your economy.