Finance
Key information about form W-2 one should know
To understand and correctly file taxes, individuals must understand the importance and requirements of the W-2 form. It is a critical document that shows important information about the income one has earned, the amount of taxes withheld, and benefits. This form is more of a legal requirement than simply a record. For employers and employees to take care of their taxes and wages correctly, it is critical to understand the form better. Overview W-2 or the Wage and Tax Statement form must be sent to each employee by the employer. The IRS should also be sent a copy of this form at the end of each year. The form has records and details of an employee’s annual wages and the taxes withheld from their paychecks. W-2 employees receive their paychecks with the taxes deducted by their employer. The employer needs to submit that information to the government employee. The W-2 form reflects a person’s income and taxes paid during that annual year. The form has three sections, each with its details and requirements. On the left side, the form includes the taxpayer’s personal information. The right side of the form contains information about the individual’s earnings and tax information. On the bottom of the form is the local and state tax information.