W2 Forms: How to Create and File Income Returns
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 form simply indicates the income paid as well as the social security number of the employee, and taxes withheld. 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. There are three forms for every employee. 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. 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.
Copy A is normally the first one which is usually submitted by an employer to the Social Security Administration. The other copy, Copy B is sent to the employee whereby the employee files 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. 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 because failure to do so can bring about unexpected implications from the Internal Revenue Service. It is mandatory for all employees who earn wages and salaries to fill out the W-2 forms as expected because failure to can lead to one being penalized.