How to Calculate W-2 Wages From the Paystub. The tax season is one period that many people actually really dread. Unlike what many people believe, that you need the W2 form to calculate the tax returns if you do not...<br /><a class="read-more-button" href="http://jacksonvillejaguarsvspittsburghsteelers.us/short-course-on-forms-covering-the-basics/">Read more</a>
How to Calculate W-2 Wages From the Paystub.
The tax season is one period that many people actually really dread. Unlike what many people believe, that you need the W2 form to calculate the tax returns if you do not have the form, there is no need or you to wait forever because the same information that will come with the W2, you can get from none of your paystubs. Here is some guidance on how you can use your paystub to calculate the W2 wages.
The first step will be understanding the difference between the paystub, the W-2 and the final paystub because he can get confusing especially if you are not familiar with the tax process or the payroll. The paystub is what you get every pay time or rather the paycheck, that has the total amount that you’ve made during that period, the deductions and the taxes withheld from the net gross and the net earnings too.
There is then the final stub, which you get annually and shows the net and the gross income for the whole year. The W-2 form then shows the total federal and state taxes withholdings from the paycheck. The W2 will also have information on the total amount you’ve made all year, and the net income too and all this you can get from the paystub which means that with simple math, you can still get the information that you need from the paystubs.
The paystub has all the information that you need despite the fact that it doesn’t look the same as the W2 form. Before the taxes withholdings and the deductions, there is the total amount that you make all year which is the gross income and is the first thing that you fond. The paystub still have this info, together with the commissions, the bonuses and the overtime hours. There are wages that do not have any of the income, federal or state taxes and the next thing will be to subtract them.
They may include the disability wages, the employer insurance, the partnership income or gifts which you will all add up and them take out from the gross income. The next thing that you will take out will be the deductions. The next thing will be determining the total annual taxes, all of them including the federal, the local and the income. You will then multiply this number by the total amount of time that you get paid in a year. There is the amount that you got after subtracting the non-taxable wages and the deductions from the gross income, which you will then subtract these total taxes and then you will have our W-2 earnings. This is not a hard process and that means that you don’t really have to wait for the W-2 form.