Tips for Calculating W2 Wages from the Paystub
Having your tax processed with a W2 form might not be an easy thing. The W2 form contains the information that is required in preparation for tax return. 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.
Those who are not familiar with the tax process or the payroll might not have a clear idea of what a paystub and a W2 form are. 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.
Paystub is the paycheck that one receives from his or her employer every time you receive your salary. It contains all details about your pay and the total deductions including the tax that are subtracted from your salary or view here for more info.
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. It will be inclusive of the federal tax and also the respective government's tax. A W2 form is very vital for every citizen to make sure they have all the time they are filling in the tax in their nation at least once n a year.
With the paycheck you will have an opportunity of knowing about 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. It is not necessarily for one to find similar information on the W2 form like it is on the paystub, the paystub will show everything important to aid in figuring out the total net income one has made.
Below are some of the things that everyone who needs to calculate the W2 wages from the paystub.
What you need to do is finding your gross income as the first thing. It is the first step that everyone must take. The amount of money that someone earns and has not yet been deducted anything is always referred to as gross income. The gross income for someone is always displayed on the paystub.
The next thing to do is deducting all the not-taxable wages. The non-taxable ages should then be deducted from the gross income of someone. The wages that cannot be taxed will include all the money that you earn and do not have any federal, income or state 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/Cheque#Travellers_cheque