There is nothing as confusing as trying to keep records of your taxes when you have no idea of the process. Some will wait until they have the W-2 wages to start the process of filing the taxes. In case you do not have the W-2 yet, you should not keep waiting you can get the information from your pay stub. Check https://www.thepaystubs.com to learn more.
The challenge comes in when you do not know the relationship between the W-2 wages and the pay stub. The form with a list of the total amount of tax that has been restrained in your paychecks for the whole year is what is said to be W-2 wages. A pay stub is a paper document that every employer give to the employee as an indication that they have paid for them for their service. Having such ideas will help you when it comes to doing the calculation. Read on the article below to find out some of the things you need to know when calculating W-2 wages from a pay stub or click to learn more.
For beginners ensure you familiarize with all the things entailing the calculation of W-2 wages from a pay stub. The best people to approach for assistance are your friends who are used to calculation the w-2 wages. You can as well make use of the internet for the information. That way you will not have a difficult time when it comes to dealing with the process.
The first thing you ought to do is calculating the amount of money you have earned that is tax and deductions excluded. You can access the whole information from your payslip. It will, therefore, be effortless the extract information. As soon as you have the gross income, you can proceed to check out your non-taxable wages. You should be very careful especially in the process. Ensure you deduct the gross income from the non-taxable wages.
You should also consider other deductions that lower the amount of the income. The deductions may include health insurance, retirement benefit, transport, life insurance to mention a few. Your pay stub will clearly show you the total of these deductions. The amounts of you get in your W-2 form after subtracting the deductions from the non-taxable wages is your total taxable income.
Ensure you have the totals of your whole year’s paycheck. Do not go looking for paychecks of the very first months of the year as you can still get it from the most recent paycheck you have received. It will be easy finding out about the tax that you have in that year. There is an automatic device that is used to create the document faster, and it can be of so much help. You ought to be very keen on how you use the W-2 wage generator. Read this article about income: https://en.wikipedia.org/wiki/Income