What You Need to Know about W2 Forms

30 Sep

Citizens have to pay taxes to their government at certain times of the year. The government requires money to give the citizens a better life by providing basic amenities. 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 provides the Internal Revenue Service (IRS) with a report on what the wages of an employee for the entire year, and the amount of money the employer has withheld in form of taxes. This article discusses the essential elements of what you need to know about the W-2 form and to know more you can also click here https://en.wikipedia.org/wiki/Form_W-2.

What you received as income in the last year will appear on the W-2 form No matter where you work, the form has the same fields for you to fill. There are two levels of government, which are federal and state. The W-2 form has both sections, and every employer should file taxes on both of these levels. Some fields, such as the Employer Identification Number and state Identification number, do not change in every form an employee fills out. Some details have to keep changing as the year changes.

A W2 form specifies any income you obtained in the previous year. For instance, it has a box for filling in the cumulative amount an employee got from employment under the year and employer in question. Other areas to fill are the taxes withheld, social security tax and wages, among others. Some jobs entail employees receiving tips from clients.

An employer should facilitate the employees to file their taxes. An employer who paid any compensation to an employee, such as wages, bonuses, and salaries, should send him/her a W2 form. An employer should give his employees ample time for filing taxes. An employer should help employees beat the deadline by sending forms before the end of January. Also, whether you chose to file online through their website or by mail, the deadline applies, therefore, you must ensure you file in time.

The W-2 form has many sections and Copy A which goes to the Social Security Administration is on a particular paper. The special paper makes it impossible to get by downloading from the internet. Instead, you need to look for the official forms, which you can get in a copy shop. An employer sends out W2 forms to his employees. Also, if you are on a contract basis, you should file your taxes through the W2 form. Contracted employees file their taxes using the W-9 form. When they begin working for a company, contracted employees fill out the form. Once contracted, employees provide a service worth at least $600, contracted employees get a 1099 form given by the company for which they complete the service so click here for more information about the service.

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