W2 Forms: How to Create and File Income Returns
When someone is employed and their employer pays them through noncash means, for every amount that exceeds six hundred dollars for that year, an employee is obligated to fill 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. 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 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. It is normal for every employee to have three W-2 forms. The first form is sent to the Internal Revenue Service, the second one is sent to the employee while the third one is kept by 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. 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. The form W-2 consists of six copies. 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. Copy C is also sent to the employee which she or he retains for record purposes. 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.