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. 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. When an employee is preparing tax returns for a given year, it is on the W-2 form where the tax withheld is deducted from the tax that is 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 wise for an employee to be aware that the amount on the W-2 form sent to the Internal Revenue Service should match with the one the employee files as differences may raise suspicion from the Internal Revenue Service. 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 deadline set by the Internal Revenue Service for employers to send to their employees the W-2 forms is the thirty first of January. 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. The breakdown of the form is as listed below.
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. The third copy, Copy C is also sent to the employee for purposes of own record keeping. 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.
In conclusion, filing for income tax returns should be taken seriously by both employers and employees. 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.