W2 Forms: How to Create and File Income Returns
Each and every person who is employed and their employer pays them on a non-cash basis, there is need to fill out the W-2 form for any amount equal to six hundred dollars and above. 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.
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.
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. The Internal Revenue Service has also set a deadline for submission of the W-2 forms by employees on February 29. There are usually six copies for every W-2 form. The breakdown of the form is as listed below.
Copy A is the first one and this copy is usually submitted by the employer to the Social Security Administration. 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. 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 sixth copy, Copy 2 is meant to be the employers copy so as to file for state or local income tax returns, if any.
To conclude, it is recommended that seriousness should prevail from both employers and employees when it comes to filing income tax returns. There can be serious consequences that may arise if either the employer or the employee fails to play their part right. 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.