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. Sometimes you might not have the W2 form, but you can still acquire the same information from the paystub.
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. You might find yourself in a confusion once you receive the last paystub since all the total earning appearing on the paystub will not match with the W2.
Paystub is the paycheck that one receives from his or her employer every time you receive your salary. The paystub will always show the exact amount of money that you are supposed to receive from your boss inform of your salary and any other amount of money that should be deducted from your salary such as the government tax.
While a W2 form is normally a tax form that indicates all the amount of money that one has to be deducted from the paycheck including the tax every 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.
A w form is different from the paycheck since it indicates the amount of money that one has been deducted from his or her total earnings while the paystub will always show the total amount of money someone makes on yearly basis. 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. You have to start by doing this. 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.
What one must do next is subtracting all the non-taxable wages. You will have to deduct all the non-taxable wages from the 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.