Your employer sends you a W-2 form to file an income tax return for yourself every year. The process is pretty simple. You will receive a W-2 form from your employer, file your taxes, and then you must either pay what is pending or wait for a tax refund.
There are times when your employer sends you multiple W-2 forms, but only when it’s of extreme importance, else you will receive only one W-2 form. This article will be your guiding angle in understanding the how’s and why’s of this!
The Ambition of a W-2 Form:
A W-2 form is a document that U.S. residents use to report income and tax deductions in a year. This form is being used by employers who are settled on a fixed salary basis.
The W-2 form must be sent to the employers by the end of January every year. This is to ensure enough time for you to file your tax return before the deadline arrives in April. You may also need the W-2 form for your (FICA) Federal Insurance Contributions Act which is particularly deducted from your paycheck stubs.
A W-2 form is what the (IRS) Internal Revenue Service uses to document and arrange your and other employers’ earnings. This keeps them informed about the exact amount of tax paid against what was hidden from your paycheck, including deductions.
Tackling with various W-2 forms from the Same Employer:
The people on a fixed payroll with an employer seek to work the extra mile for that secondary income for the same employer. If you add up the people who have changed their jobs, only a few people deal with multiple W-2 forms from the same employer at the end of the year.
You may also receive W-2 forms from the same employer, which might arrive from various departments. This means that they will fetch different (EIN) employment identification numbers. For later, you need to punch in each number differently on the film, but the timing will be the same.
Why do you Receive Two W-2 Forms from the Same Employer?
You must be wondering why I received two W-2 forms from the same employer. There are numerous answers to this question. Let’s understand it.
The first case can be when the employer improperly sends you an identical W-2 form. This can be termed a mistake, as the other form may have been sent by mistake. You should report this issue to the IRS and receive a single W-2 form. It’s recommended that the employer should send only a single W-2 form.
When an employer sends you two W-2 forms, they take the risk of increasing errors while entering the employee information in the W-2 form. Though it’s unlikely to submit numerous W-2 forms, this only indicates the employee’s income in a tax year.
Though you have worked for the same employer once or twice, your earnings must be tallied and entered in a single W-2 form.
However, if you receive various W-2 forms, then it might be because you have worked for more than one scope, which gets paid on different pay scales. You will receive numerous W-2 forms if you work in more than one location for the same employer.
Another possible reason you receive various W-2 forms is that you work for an employment agency or if your employer has changed your payroll services. The ultimate point of the employer sending you multiple W-2 forms is to remind you to report all your income.
Submitting your W-2 Form:
When you receive numerous W-2 forms from your employer, make sure to use only one of them. You can keep the other W-2 form for your records. Cross-check that the federal wage information in box 141 is left blank in one of the W-2 forms.
Also, check the state information in boxes 15-17 or look into the local boxes 18-20, but that is different. In this scenario, you will be needed to enter information in both of the W-2 screens. Enter all the information in the W-2 form and then enter the different state and local information from the other W-2 form. If any difference arises with box 12, use the information in the form, which is almost complete.
Next, enter different information in box 12 from other W-2 forms on the same screen. Also, enter information about your health insurance on the W-2 form in box 12. If you’re not able to enter the information, you can seek the help of an accountant.
How does the W-2 form clash with your Witholdings?
When you are an employee of a firm, the employer will send you a W-2 form every year. But your employer will also ask you to fill out a W-4 form. A W-4 form is the withholding allowance certificate that must be filed before filing a W-2 form.
When there have been changes in your financial documents within a tax year, you also need a W-4 form. The changes can be divorce, a new family member, marriage, or a new job. You will be needed to put the precise details into the W-4 form. This comes under the influence of withholding allowances. This lets your employer regulate how much income tax will be withheld from your paycheck.
Your annual tax will be calculated based on the number of allowances in your W-4 form. With every paycheck, your employer deducts a certain amount of earnings from your pay stubs. This amount covers your taxes, so you pay them in small portions at the end of the tax year.
Employers are compelled to withhold the earnings for federal taxes remittance. The amount the employer withholds depends upon how much you earn and the details mentioned in the W-4 form. Your multiple jobs will affect the withholding allowances. The income information in your multiple W-2 forms should be reflected in your W-4.
In short, the legal guidelines are the same for individuals filing numerous W-2 forms in a tax year. Always try to keep yourself updated with the tax updates to know how definite your taxes and withholding allowances can change. However, if you don’t receive a W-2 form from your employer, you still can file income tax.
Why would I receive multiple W-2 forms from the same employer?
Different positions, states, or payroll systems may lead to multiple W-2 forms.
How do I report multiple W-2 forms on my tax return?
Combine the income and taxes from each W-2 form when filing your taxes.
Is it common to get separate W-2 forms for part-time and full-time work?
Yes, employers issue separate forms if there are variations in wages or deductions.
What if I don't receive all my W-2 forms from the same employer?
Contact your employer's payroll department to ensure you receive all necessary forms.