All about W-2 Tax Forms
Each and every person who is employed and their employer pays them on a non-cash basis, there is need to fill out the W-2 form for any amount equal to six hundred dollars and above. The form simply indicates the income paid as well as the social security number of the employee, and taxes withheld. When an employee is preparing his or her tax return, on the W-2 form, the amount withheld is usually deducted from the tax that’s due. In case the amount withheld from an employee’s income is more than necessary, it is possible for the employee to get a refund from the Internal Revenue Service.
It is important that employees know that the amounts they file should match with the one on the W-2 form sent to the Internal Revenue Service as failure to match them can lead to suspicion for them. It is normal for every employee to have three W-2 forms. One of the forms is sent by the employer to the internal revenue service, the other one is sent to the employee and the third form is for the employer for record keeping.
It is the duty of the employer to complete the W-2 forms and send them to their employees by mail before January thirty-one. The Internal Revenue Service has also set a deadline for submission of the W-2 forms by employees on February 29. There are six copies of the W-2 form. Shown below is the breakdown of the six copies.
The first copy also known as Copy A is submitted to the Social Security Administration by the employer. The other copy, Copy B is sent to the employee whereby the employee files federal income tax returns. Copy C is the third one and this copy is usually sent to an employee so that they can keep their own records. The fourth copy, Copy D is kept by the employer also for purposes of record keeping. The fifth copy, known as Copy 1 is filed by the employee for state or local income tax returns. The last copy, Copy 2 is to be filed with the employer’s state or local income tax returns if any.
To conclude, it is recommended that seriousness should prevail from both employers and employees when it comes to filing income tax returns. There can be serious consequences that may arise if either the employer or the employee fails to play their part right. Therefore, for all employees that are entitled to wages and also salaries, there is need to fill out the W-2 form when it is time to avoid being penalized by the Internal Revenue Service.