The Basic Truths about W-2 Forms
If you are an employee and you receive a certain form at the end of January every year and the same copy sent to the revenue authorities, then that is a W-2 It serves as a statement of the annual wages and the amount of taxes that are withheld from your paycheck. This article is aimed at ensuring that you understand a few things about the W-2 form as an employee.
The first thing that you need to know is that you will need your W-2 to file your tax returns as it tells you how much you have earned for the past year and the much that you have paying in form of taxes. The best thing about the W-2 forms is that once you have them, you can easily file your returns and avoid issues with the relevant authorities.
It is also essential for you to know and understand that the W-2 form is not only about your pay but also details other aspects such as the much you have contributed towards your retirement plan. It is crucial for you to know that the tax aspect has a lot of divisions and the w-2 form will help you know what is taxable and what is not.
The fact that the employers are legally supposed to send the copies to the revenue service authority and you means that it is not a secret. It is crucial for you to ensure that you have filed your tax returns in the right way and truthfully as there is nothing that you essentially gain when you hide the details on your tax return.
It is also important for you to know that your employer is required to send the W-2 forms to the employees by the end of January every year or face penalties. If you are an employer, you will need to have all these forms disbursed regardless of the method; even electronically it is allowed.
Given that it is the employers that generate the forms, you will find that they can make mistakes. As the recipient, it is your responsibility to make sure that you have the corrections done as soon as possible to avoid complications.
In efforts to avoid the forms from going to the wrong authorities, it is crucial for you to make sure that you have all the facts correct or rather right. It does not matter whether you have moved out or started living at a friend’s place, make sure that you have the addresses rightly placed.
If you die before the year is over, then the employer will still have to send the w2 form to the revenue service and to you.