Having your tax processed with a W2 form might not be an easy thing. Whenever you are preparing to have a tax return, you will always need to have the information found on the W2 form. There are moments when one might not have the W2 form ready to use, but the good thing is that you can easily get the same information from a paystub and use it to fill in your tax return.
If you do not know anything to do with the tax or the payroll, then you might not know what we are talking about when we mention the W2 form and the paystub. There are some moment when one might get confused after receiving the last paystub and find out that the details on the paystub are different from the W2 form. Check this service for more info.
Paystub is the paycheck that one receives from his or her employer every time you receive your salary. It usually contains all the information that shows the amount of money you are supposed to be paid by your employer including the amount of money and the type of deductions that should be made from your salary including the tax.
A W2 form is a tax form that shows the total amount of cash or tax that have been withheld from your paycheck in a year. This will always include the federal and the governments tax. It is advisable for everyone in every nation to make sure they have a W2 form every time you are filling out your tax an activity that is carried out once in a year in almost all nations across the world or learn more info here.
With the paycheck you will have an opportunity of knowing the total amount of cash one makes yearly, while the W2 forms indicates the amount of money one has been deducted from his or her total earnings. W2 form will have different information’s with the paystub since the W2 form does not contain similar information with the paystub, the paystub always indicates the total amount of net income someone has made.
Here are some of the things you need to do to calculate your W2 wages from your paystub.
The first thing that one has to do is finding his or her gross income first. You have to start by doing this. Cross income comprises of the amount of money that someone earns and has not yet been deducted any expenses such as tax withholdings. The paystub will always display the gross income for you.
The next thing to do is deducting all the not-taxable wages. One has to subtract all the non-taxable wages from his or her gross income. The non-taxable wages are all wages one receives that do not have any state, federal, or income taxes. This may include things such as disability wages, employer insurance, gifts or partnership income. Read this article about income stub:
https://en.wikipedia.org/wiki/Income_tax#Alternative_taxes