Strategies Used to Get the W-2 Salaries from a Paystub
A W-2 is a form that shows all the taxes that have been deducted from your wages in a whole year. Each time your wages are remitted to you, you have a paycheck that comes with is called the paystub. You will also see all the deduction that has been taken away from your salaries in the paystubs. A W-2 form can be used to prepare tax returns. It is still possible to calculate tax returns without a W-2 form. You can do this by getting information from any of your paystubs. This article shows some of the ways that can be used to calculate W-2 wages from a paystub.
Whoever wants to get their W-2 ages using the paystub must, first of all, know the total amount that they are earning. The calculation of the gross income is critical. This represents the total amount that you are earning before any amount is subtracted. Your rate of work per hour is usually multiplied by the number of the weeks that you have been working on getting this. All this information will be in the paystub. The paystub contains additional information that may relate to the add on such as the commissions, the overtimes, and the bonuses.
You need to subtract all the non-taxable wages for you to get your W-2 wages from a paystub. Immediately after knowing your gross incomes you will have to get these deductions. Such incomes are not subjected to taxation. You will have to add them then deduct from the total incomes that you make.
Thirdly, you will have to be able to explain all the deductions that are made. Some amounts may be subtracted even before the tax is calculated. These would, in the long run, reduce the amount of the taxable income. Some of the examples of these deductions include health insurance, the employer benefits, and the retirement accounts. The totals of these deductions should be found and deducted from the amount that was received after deduction of the non-taxable wages.
The next step is to find your yearly taxes. You need to get the total taxes that you pay to any form of government at the end of the year.
Finally, you will have to calculate your W-2 earnings. All the taxes should be put together. You have to get the difference between the total amount that you had received after subtracting the pretax incomes and the taxes. From all these you will come up with your W-2 wages.
All the steps that have been discussed above are essential for any person who wants to get their W-2 wages from a paystub.