Filing for taxes each year can be something that is extremely complicated for some individuals, as there are many documents and information that must be recorded and submitted. Yet one form of documentation that almost everyone has to file each year with their taxes is known as a W-2 form. In terms of tax preparation, New Port Richey residents might not be aware that this form is a statement that records the wages and taxes applicable to an individual based on the financial stipulations between an employee and their employer. This is something that is required by the IRS when someone files their taxes.

Components of a W-2 Form

Every employer has to have a wW2 form for their employees, and this is something that is standard and requires the same fields of information regards of which company is providing a w-2 for tax preparation. New Port Richey residents should know that the IRS knows which company is providing the W-2becuase it requires a company employer identification number (EIN) as well as the employer’s state ID number. The invocation that is important to the individual would be their total earnings that they have accumulated with the employer that year, and how many taxes have been taken out based on your total accumulated income.

Related Forms to a W-2

While many people will only need to file a W-2 in order to complete their yearly tax preparation, New Port Richey residents should know that there may be some instances where they are required to file additional documentation that pertains to a W-2 Form. A W-4 form for example is used for withholding purposes, so that an employer can determine how much tax to withhold for their employees. Contracted employers are required to fill out a W-9 Form when they start doing work for someone else. Other forms that may need to be filed along with a W-2 form would be the 1099 and 1098 forms.

*Disclaimer: The views expressed here are those of the authors and do not necessarily represent or reflect the views of Suncoast CPA Group*