The Basic Truths about W-2 Forms
When defining a W-2 form, you will find that it is a form that your employer sends to you, and a copy is sent to the revenue service authority at the end of every year. There is the need for you to know that the form contains the wages and taxes that you have filed for that year and were not included in your paycheck. Here are some of the most interesting facts about your W-2 forms.
One of the aspects that you need to understand is that it shows the much that you have earned for the past year and the much that you have paid in taxes. When you have all the details right, you find that it is now easy for you to enjoy peace of mind knowing that you are in no trouble with the authorities.
It is also essential for you to know and understand that the W-2 form is not only about your pay but also details other aspects such as the much you have contributed towards your retirement plan. It is crucial for you to know that the tax aspect has a lot of divisions and the w-2 form will help you know what is taxable and what is not.
Since the employers are required by law to send them to you and the revenue authorities, it is not a secret. This goes without saying that even if you get it and shove it in your drawer, there is nothing you gain; in fact, you attract the authorities to send you a letter if you put in wrong information.
It is also important for you to know that your employer is required to send the W-2 forms to the employees by the end of January every year or face penalties. For the employers, you will have to make sure that you have the forms sent in regardless of the method used.
The fact that the employers are also people makes it possible for there to be mistakes. If you get a mistake or error with your name, dollar amount, it is essential for you to make sure that you have them pointed out and corrected as it affects the entire tax details.
In efforts to avoid the forms from going to the wrong authorities, it is crucial for you to make sure that you have all the facts correct or rather right. Even if you move out, it is crucial for you to ensure that you have the address changed as soon as possible.
It is important for you to know that even after your demise, your employer will still send the forms to you and the concerned authorities on that year.