All governments worldwide collect money from their citizens in the form of taxes. 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. In such a case, the W-2 form comes in play for US residents. The form acts as a report detailing the amount of money an employer has withdrawn from employees.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.
The W-2 form only reflects the income you obtained in the previous year. The forms remain the same regardless of the employer you have. There are two levels of government, which are federal and state. Since there are two levels of government, a W2 form includes both levels. The details on some sections do not change regardless of the year the employee is filing taxes. An employee will have to adjust some features each year he files taxes.
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. An employee also has to fill in the social security wages and what the employer withheld from his salary. A job that allows an employee to get tips from clients will also have the employer including such income in the employee’s form.
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 or by mail, the deadline applies, therefore, you must ensure you file in time.
Copy A is on a laser-scannable paper which you submit to the Social Security Administration. 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. If you are self-employed, or are a contracted worker, you should not fill out the W2 form. An employee employed on a contract basis uses a W-9 form to file taxes for their previous year. Only when they start working for a company, do they fill out a W9 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 for.