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. The W-2 form is the form that shows the amount received, taxes withheld and also an 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.
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. 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. The other copy, Copy B is sent to the employee whereby the employee files 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. 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.
In conclusion, filing for income tax returns should be taken seriously by both employers and employees. 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. 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.