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 hard to escape from paying taxes because of the penalties that many governments have imposed for avoiding or file their returns late. 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 a form used by the internal revenue services used in the United States showing wages paid to employees and also the taxes withheld from the income. The initial feeling of the W-2 form is left to the employer who is obligated also to ensure that they will hold some specific amount of money from your income before paying you and then ensure that the data is entered in the W-2 form.These forms are supposed to be filled from the starting of the end-of-the-year on which the employer is expected to mail or send the forms to the employees before the end of the year or before January 31 so that it can give the employee enough time to fill the W-2 form and also file the returns on time at is on April. Having the form with you is important because it helps you in filing your income taxes for the federal and state government.
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.
Not every income is taxable and that why box 1 is supposed to have the total amount of income you earned during the fiscal year that are 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. The boxes ranging from 7 to 10 contains important information which include extra special information that the employer might include such as reimbursement statement, income credit and so on.The box from 11 to 12 will contain deferred compensation plan information and if you don’t understand that you can consult with the employer. Box 13 and 14 contains extra information for any additional tax while 15 to 20 will have the similar information as box two and six.