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Filing Tax on W2 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. This form is the one that shows the amount paid by an employer, the taxes withheld as well as the employee’s social security number. During the preparation of the tax return by an employee for a given tax year, the amount withheld on the W-2 form is subtracted from the tax due. Supposing an employee had his or her income held more than necessary, there are chances of them getting a refund of the extra amount 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. There are three forms for every employee. One form is kept by the employer for purposes of record keeping, the other one is sent to the employee while the third one is sent by an employer to the Internal Revenue Service.

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. After the employee is done filling the W-2 form, she or he should submit it on or before February 29 as per the set deadline by the Internal Revenue Service. There are six copies of the W-2 form. Shown below is the breakdown of the six copies.

Copy A is the first one and this copy is usually submitted by the employer to the Social Security Administration. Copy B is the second one and this copy is sent to the employee for purposes of filing federal income tax returns. The third copy, Copy C is also sent to the employee for purposes of own record keeping. The other copy, Copy D is retained by the employer for record keeping purposes. There’s a fifth copy is known as Copy 1 which the employee files for purposes of state or local income tax returns if any. Copy 2 is the last one and this is sent to an employer so that they can also file for state or local income tax returns, if at all there is any.

To conclude, it is recommended that seriousness should prevail from both employers and employees when it comes to filing income tax returns. This is due to the fact that if either fails to play their role, they can be met with serious consequences coming from the Internal Revenue Service. All employees entitled to wages and salaries must fill the W-2 forms and submit as required to avoid getting penalized.

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