A government needs to have enough resources and there are different channels that many governments use to get revenue with taxes being the primary source of revenue for many governments. It is possible to avoid paying taxes or file returns late but because of the penalties you have the pay, it is important that you pay the taxes. Taxes can be classified according to how they are levied, for instance, there are direct and indirect taxes whereby direct taxes are levied directly from you especially if you’re employed where you pay income tax.
A W-2 form is an example of a form that is used to show your wages and also the amount of money withheld from you as taxes from your income in the form is issued by the Internal Revenue Service is to employers. The initial user of the W-2 form is the employer who is obligated by the government should ensure that the withhold some amount of money from your income and the information is entered into the W-2 form by the employer. It is the responsibility of the employer also to ensure that they send the W-2 forms to their employees that is before the year ends or before January 31 so that the employee can have enough time to fill the form and also file the returns on time. It is also responsible to ensure that you feel the W-2 form for your federal and state income taxes. What Does A W-2 Look Like?
The W-2 form will come in three identical copies from the employer who can choose to send the document electronically or by mailing it.In each form, you find that has many boxes that need to be filled sometimes can be very stressful if you don’t know what it is. Boxes A-F are very crucial because they require you to fill it with personal information and also the employer’s information such as the employer’s tax ID, the address of your job, your full name, your current address, the Social Security number and so on. To gain more knowledge on the importance of tax, go to https://en.wikipedia.org/wiki/Tax.
Box 1 is supposed to show the amount of income you earned during the fiscal year which were taxable because not every income is taxable. Box 2- box 6 is supposed to show you the amount of money that is taxable based on the federal income tax, Medicare tax, Social Security tax and state income tax. Box 7 to 10 is supposed to show you the extra information such as income from reimbursement, income credit, tips and so on. The employer can also include from box 10 to 11 in a different compensation plan information. If there are additional tax information that you need to know, it’ll be contained in box 13 and 14 while box 15 to 20 will contain similar information with box two to six. What Does A W2 Income Statement Look Like?