The Basic Truths about W-2 Forms
A W-2 form can be said to be the form that you receive from your employer every year and a copy sent to the revenue service authority. There is the need for you to know that the form contains the wages and taxes that you have filed for that year and were not included in your paycheck. This article is aimed at ensuring that you understand a few things about the W-2 form as an employee.
It is crucial for you to know that the form gives you the information on the much that you earned for the year and the much that was taxable or rather paid in form of taxes. When you have all the details right, you find that it is now easy for you to enjoy peace of mind knowing that you are in no trouble with the authorities.
It is crucial for you to also get that the W-2 form is a compilation of all your payments and not only your earnings; it also encompasses the retirement payments. When looking at the tax aspect, you will find that it revolves a lot of aspects, which essentially means that some of the contributions such as the retirement ones are not taxable.
Since the employers are required by law to send them to you and the revenue authorities, it is not a secret. This goes without saying that even if you get it and shove it in your drawer, there is nothing you gain; in fact, you attract the authorities to send you a letter if you put in wrong information.
There is the need for you to have the forms sent to the employees if you want to avoid trouble with the legal bodies; you may attract penalties. If you are an employer, you will need to have all these forms disbursed regardless of the method; even electronically it is allowed.
Given that it is the employers that generate the forms, you will find that they can make mistakes. As the recipient, it is your responsibility to make sure that you have the corrections done as soon as possible to avoid complications.
It is crucial for you to ensure that you have the right information especially concerning your address so that you can receive the forms when they are sent. It does not matter whether you have moved out or started living at a friend’s place, make sure that you have the addresses rightly placed.
It is important for you to know that even after your demise, your employer will still send the forms to you and the concerned authorities on that year.