A W-2 form, also known as the Wage and Tax Statement, is a document provided by employers to their employees every year. The purpose of the W-2 form is to report the employee's annual income and taxes withheld from their paychecks to the Internal Revenue Service (IRS).
When an employee receives their W-2 form, they use it to file their income tax return with the IRS. The W-2 form contains important information such as the employee's name, address, Social Security number, and wages earned during the year. It also includes details on the amount of federal, state, and local taxes withheld from the employee's paycheck, as well as Social Security and Medicare taxes.
Employers are required by law to provide their employees with a W-2 form every year. The deadline for employers to send out W-2 forms is January 31st of the following year. Employers also have to file a copy of each employee's W-2 form with the Social Security Administration (SSA).
The information on the W-2 form is used to determine the employee's tax liability. If the employee had too little tax withheld from their paycheck during the year, they will owe additional taxes when they file their tax return. If the employee had too much tax withheld, they will be entitled to a refund.
In addition to being used for tax purposes, the W-2 form is also used by lenders and other financial institutions to verify income when an individual applies for a loan or credit. It is also used by government agencies to verify eligibility for certain benefits, such as Social Security or unemployment benefits.
In summary, a W-2 form is an important document that provides information about an employee's income and taxes withheld from their paychecks. It is used by employees to file their income tax returns, by employers to report income and taxes to the IRS and the SSA, and by other organizations to verify income for various purposes.
Managers should give every one of their representatives a duplicate of a finished IRS Form W-2, Wage and Duty Explanation, by January 31. This form is utilized to report wages, tips, and other representative remuneration to the IRS and state charge organizations, as well as how much worker Federal retirement aide and annual duty withheld. You really want this form to finish your expense form. Incidentally, inability to get a W-2 from your boss doesn't pardon you from documenting your personal expense form, nor does it broaden the cutoff time for recording.
What if w2 form is incorrect?
What would it be advisable for you to do on the off chance that you don't get your W-2 by January 31 or it contains information that is wrong? Simply sit back and relax, this is a typical issue. A few managers have junky accounting, or your boss might have left business or been gained by another firm. Assuming that you moved, your manager might not have your new location. The IRS has a three-step approach you ought to follow.
Step #1: Contact Your Manager
In the first place, you ought to contact your manager, educate them regarding the issue, and request that they issue you a new or remedied W-2. Advise your manager to send you the W-2 toward the finish of February at the most recent.
Step #2: Call the IRS
On the off chance that you don't get the absent or adjusted W-2 form toward the finish of February from your manager, you might call the IRS at 800-829-1040 and request help. The IRS will send a letter to your boss for yourself and solicitation the missing W-2. This frequently gets the job done, since most businesses treat letters from the IRS in a serious way.
Before you call the IRS, be ready to give the following information:
your name, address, and telephone number
your Government backed retirement number
the dates of your business, and
your manager/payer's name, address, and telephone number.
Step #3: Use IRS Form 4852 to Document Your Return
On the off chance that you actually don't get the W-2 you really want from your boss, you might set up a substitute W-2 yourself to document with your expense form. To do this, you should finish and record with your return IRS Form 4852, Substitute for Form W-2 or Form 1099-R. The IRS naturally sends you a duplicate of this form alongside a letter containing guidelines when you settle on a telephone decision as depicted in Sync #2 above.
To finish Form 4852, you'll have to list your complete wages, tips, and other remuneration you got from the business, as well as how much charges it withheld from your compensation and shipped off the IRS. You can utilize your compensation stubs to sort this out. Therefore it's smart to always save your compensation nails.
On the off chance that you get the absent or remedied Form W-2 after you recorded your return and you find you committed an error on your Form 4852 that you want to address, you'll have to document a changed government form for the year utilizing Form 1040X, Corrected U.S. Individual Personal Expense form. Your changed return can take the IRS as long as 16 weeks to process. Thus, on the off chance that you're owed a discount, it could be postponed.