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.
During the filing process, it is wise that every employee knows that the amount on the W-2 form is sent to the Internal Revenue Service by the employer and if the amounts tend to differ with what the employee has filed, the Internal Revenue Service may become suspicious. Every employee has three 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. Written below is how the copies are broken down.
The first copy also known as Copy A is submitted to the Social Security Administration by the employer. Copy B is the second one and this copy is sent to the employee for purposes of filing 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. Copy D, also the fourth copy is known as the employer’s copy which they keep for record purposes. The fifth copy, known as Copy 1 is filed by the employee for state or local income tax returns. 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, the process of filing for income tax returns should be done with caution by both employees and their employers. There can be serious consequences that may arise if either the employer or the employee fails to play their part right. It is mandatory for all employees who earn wages and salaries to fill out the W-2 forms as expected because failure to can lead to one being penalized.