W-2 Form : : What is a W-2 form?
What is a W-2 form?
W-2 form officially the wage and tax statement is an internal revenue service tax form used to report the wages paid and tax withheld from employees in the united state. W-2 form gives an accurate report of how much money an employee or employees made.
The employer completes the W-2 form for their employees as part of the employment relationship. The purpose of filling W-2 form is to inform all the parties involved of how much the employee earned and the tax paid. The information on the W-2 form helps the internal revenue service to determine whether the employee owes or entitled to a tax refund.
How does it work?
Employees get the W-2 form from their employers at the beginning of the year. The employers also send out copies of W-2 form online to the internal revenue service and the state government. The employer must carry out all the assignments of the filling of the W-2 form and mailing the W-2 form online to the other necessary parties.
They do this because if they fail to fill and mail the W-2 form online to the appropriate bodies, they have penalties to face. As an employee, you don’t have to do anything. Your W-2 form comes to you with all the necessary information filled on your behalf. Yours is to confirm if the information on the W-2 form is correct and attach it to your tax return.
Does it work for employees with a second job?
Yes, it does. For employees with multiple jobs, filling the W-2 form requires an extra step. Employees with second or multiple jobs need to fill the W-2 form for each job they hold. As an employee with a second job, ensure that you fill out all W-2 forms for the entire job because if you fail or forget, you have to make an amendment. The internal revenue service will find out if you don’t fill out all the forms, but making an amendment will save you from the audit. If you have a second job or multiple jobs, you need to fill out your W-2 form before your tax is filled. You need to attach each of your W-2 forms and various information when filing your tax form. Your wage line determines your total employment income. You need to combine the entire amount indicated in each box for an accurate report of the previous tax year.
What is the penalty of not filling W-2 form for a second job?
The internal revenue service has its record, which they can use to match your W-2 form filed with your tax return. So if you forget to attach any copy of your W-2 form, you won’t face any penalty, but if you forget to include any income and did not attach the W-2, it will be taken more seriously because something may have happened. It is either the IRS owes you, or something is wrong.
If IRS owes you money, it will be indicated in your original return. The IRS might give you the return, but you will have to file an amendment return first. If you don’t fill the amendment, the IRS won’t send you a letter of return. You have three years to fill the amendment. If you don’t fill it within that time, your refund will be forfeited.
But if you owe the IRS money, you will have to pay for the penalty. You might also have to pay interest on the amount of tax you underpaid. On the balance that you owe, the penalty is 0.5%, while the maximum penalty is 25%. If they detect that your missing W-2 form was as a result of fraud or negligence, the IRS will take an additional 20%. You have three years to fill the amendment. If not, your fund will be with by IRS.