Get your fees properly paid is one stressful thing. Since the required information is in the W2, most of the people delay their taxing processes until the W2 is released. Below is a guide that will assist you in calculating your W2 wages from a pay stub and therefore speed up your tax process.

Pay Stub Definition

Pay stubs are the paychecks that an employer provides the employees after paying them. It indicates the information about your salary and the deductions and taxes that have been deducted from your salary. It will also inform you on the amount you will get from the paycheck.

Description of Final Pay Stub

A final pay stub is a pay stub that is provided when the year comes to an end. They provide details on one's gross and net income for the entire year or read more info here.

Definition of a W-2

A W-2 is a tax form which indicates the entire amount of taxes that have been deducted from your paycheck for the whole year. You will need this information when filling out your tax returns.

How to Calculate W-2 Wages from a Pay stub

Through a W2, you will get details on the tax deductions made on your paycheck and the net revenue raised in the year. As much as you will be able to obtain same information as the one in the W2, you can still remember your entire net income using the details that it is offered. The following steps will guide you.

Inquire on Your Gross Income

First and foremost, find out how much you have received before deductions and taxes have been included. In many cases, the total amount will be calculated by multiplying the price per hour with the set hours in a week. Check https://www.thepaystubs.com to learn more.

Subtract Wages That cannot be Taxed

Non-taxable wages are those that are not inclusive of any federal, state and income taxes. On the other hand, it may include partnership income, disability wages, and employer insurance. You should subtract all your non-taxable fees from your gross income.

Get to Know Other Deductions

These deductions include employer benefits, and health and life insurances. From the amount in the above step, subtract all these deductions.

Determine Yearly Taxes

Get to know how much is local, state and income taxes are withheld from your total earnings. If you want to see the amount of tax that you will have to pay at the end of the year, multiply the total amount of taxes by the number of times you get to spend them in a year.

Determine Your W-2 Earnings

The last step is to subtract all the fees derived from the number in step there. The answer you will get will be your annual net income.

The only time you will get your calculated amount varying from the W2 one is when mathematical errors have occurred. Read this article about income stub: https://en.wikipedia.org/wiki/Income