W-2

A tax statement that an employer gives his employee at the end of the year is called the W-2. The list includes the employee’s gross salaries, taxes withheld, insurance payments, and other transactions that transpired between them. A company sends the record of the employee’s income taxes to the IRS and has made payments for a portion of the social security tax. The W-2 is referred to by the employee when he files his taxes for the previous year. Any income received from additional paid work should be added when paying taxes. Computation of taxes will determine if the employee either has to pa an additional amount or receive a refund.