Why Taxes Aren’t As Bad As You Think

Why Taxes Aren’t As Bad As You Think

What You Need to Know about W2 Forms

Every government collects taxes from its citizens on a periodic basis. Without taxes, the government does not have enough funds to provide social amenities, infrastructure, and other public resources. In some instances, an employer has to pay taxes on behalf of his employees by taking some y from their paychecks. When an employer has to withdraw money from an employee’s salary, he needs to use the W-2 for that purpose. The form acts as a report detailing the amount of money an employer has withdrawn from employees. This article discusses the essential elements of what you need to know about the W-2 form.

What you received as income in the last year will appear on the W-2 form The forms remain the same regardless of the employer you have. The government is broken down into the federal and state levels. The W-2 form has both sections, and every employer should file taxes on both of these levels. Every form an employee fills out and specific fields remain constant. However, some keep changing depending on what the employee’s income was in the previous year.

Whatever the income you get, the W-2 form captures it all. The form provides space for an employee to detail the entire amount an employee earned in the previous year There are many details that an employee has to fill among which are his social security wages. Some jobs entail employees receiving tips from clients.

An employer should ensure that employees file taxes. W2 forms are filing any compensation an employee receives. Further, the employer should see to it that the employees get enough time to file taxes. Since the deadline for filing is the end of January, an employer should ensure employees get the W2 forms before then. If you prefer to send your forms by mail, you will still pay the penalty if you do not submit in time.

Copy A is on a laser-scannable paper which you submit to the Social Security Administration. Since the paper is unique, you cannot obtain it by downloading it from the internet. An official form is available in copy shops. An employer sends out W2 forms to his employees. A self-employed worker is not supposed to file taxes using the W2 form. For a contracted employee, the tax form which applies is the W-9 form. Only when they start working for a company, do they fill out a W9 form. The company they work for gives the contracted employees a 1099 form.

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