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Sunday, May 7, 2017

Payroll for North America: W-4 ,W-2 , W-2C Forms

W4 Form:
The W-4 is a tax form used to evaluate an employee’s personal tax situation and calculate the correct amount of federal income tax that should be withheld from his/her pay.
Factors used to determine this amount include family situation (number of children, marriage status), home ownership (buying/selling a house), saving contributions (college, retirement), number of dependents, and employment status.
This form must be completed whenever an employee starts a new job or experiences change in his/her personal or financial situation.

W-2 Form:
It is a federal tax form issued by employers and stating how much an employee was paid in a year.

This is a tax form that employers give to their employees each year to be submitted with the 1040.
It includes wages earned, federal and state taxes withheld, and social security tax information.
Employers are required to provide their employees with this information by January 31st of each year and submit a copy to the Social Security Administration by February 29th.

W-2C Form:
Form W2C is used to make corrections on W2s already issued.
The form is used to make any and all corrections on previously issued W2s from current or past years.
W2C form is prepared by entering both the previously erroneous information and the correct information.

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