All about W-2 Tax 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 W-2 form is the form that shows the amount received, taxes withheld and also an 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. 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.
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. All submissions should be done on or before February 29 as that is the deadline set by the Internal Revenue Service. The form W-2 consists of six copies. 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. The third copy, Copy C is also sent to the employee for purposes of own record keeping. The fourth copy, Copy D is kept by the employer also for purposes of record keeping. There’s a fifth copy is known as Copy 1 which the employee files for purposes of state or local income tax returns if any. The last copy, Copy 2 is to be filed with the employer’s state or local income tax returns if any.
To conclude, the process of filing for income tax returns should be done with caution by both employees and their employers. This is due to the fact that if either fails to play their role, they can be met with serious consequences coming from the Internal Revenue Service. All employees entitled to wages and salaries must fill the W-2 forms and submit as required to avoid getting penalized.