w2 FormW2 Forms - Check internal revenue service form w-2 instructions and definition, paper forms W-2 or download printable w2 form.
W2 Forms and Withholding: All You Need To Know
If you are an employee you should receive a W2 form. But if you are an independent contractor or self-employed then you will be required to fill form 1099. The W2 form is a form that the Internal Revenue Service uses to record complete wage and salary information of employees and also the taxes that are implemented on your salary including federal and state taxes. Filing your W2 forms is very important and you need to do it by January 31 each year. The information that is filed includes the months of January to December of the previous year. It is your employer’s responsibility to give you a W2 form so make sure that you get your copy and file it in time.
W2 Forms and Withholding
A certain amount of tax is withheld from your paycheck when salary is remitted to you. The money that is withheld is used for social security tax which is why the total salary that you receive is less than what your total wages for a year come to. Other than Social Security taxes, you might also be subjected to Medicare Taxes and your state income tax if it is applicable in your tax. So why is withholding important? Whenever your employer withholds any amount of money from your paycheck for income taxes, the amount is remitted to the Internal Revenue Services. All of these taxes are required to be paid throughout the year but using the W2 forms to withhold your tax means the Internal Revenue Service does it for you instead and the amount is subtracted from your tax bill at the end of the year. In case you need to make additional tax payments you need to file a form separately and along with the W2 details so that it is subtracted from your bill. Ensure that you get your name and social security number verified when filing your tax returns for W2 forms to ensure corporate tax returns take place in time and also for accuracy.