Citizens have to pay taxes to their government at certain times of the year. 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. US residents use the W-2 form to file such taxes. The form acts as a report detailing the amount of money an employer has withdrawn from employees. Here are a few things you may not be aware of 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. Federal and State are the levels in which the US government operates. 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. 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. Other areas to fill are the taxes withheld, social security tax and wages, among others. A job that allows an employee to get tips from clients will also have the employer including such income in the employee’s form.
It is the duty of an employer, therefore, to ensure that his employees file 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 send out W2 forms way before the deadline so that employees file them in time. He does this by sending the forms before 31st January since the deadline for filing usually falls on 31st January. If you prefer to send your forms by mail, you will still pay the penalty if you do not submit in time.
W2 forms are in various categories, one of which is Copy A. The special paper makes it impossible to get by downloading from the internet. Though unique, there are copy shops that stock these papers from where you can buy them. An employer sends out W2 forms to his employees. A self-employed worker is not supposed to file taxes using the W2 form. An employee employed on a contract basis uses a W-9 form to file taxes for their previous year. In such circumstances, an employee fills out the W9 form upon starting to work for a company. The company they work for gives the contracted employees a 1099 form.