Filing Tax on W2 Forms
For every person that is employed and receives noncash payments from their employer, all amounts equal or exceeding six hundred dollars requires the person the funds were paid to, to fill out a W-2 form. The form simply indicates the income paid as well as the social security number of the employee, and taxes withheld. 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.
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.
The W-2 form must be completed by an employer and then sent to the employees by mail on or before January 31st. 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 usually six copies for every 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. The sixth copy, Copy 2 is meant to be the employers copy so as to file for state or local income tax returns, if any.
In conclusion, filing for income tax returns should be taken seriously by both employers and employees. This is because failure to do so can bring about unexpected implications from the Internal Revenue Service. 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.