Calculating the W-2 Wages Using a Paystub
So it’s that time of the year again when we have to do taxes, the tax season and this is one time that sure sends shivers and chills down a number of people’s spine for a fact. For a number, we never get started on the tax process until we have our W-2. After we argue, it is that information on the W2 form that we require for us to start preparing our tax returns.
But anyway, do you necessarily need to buy into this and wait for the W2 form for you to get started on your tax process? To answer this, you need to know that there is absolutely no reason for you to keep waiting for you can verily find all that information on your W2 from one of your paystubs. This post is dedicated to help with the need to have an idea on how you can actually calculate your W2 wages from a paystub. Read on to find out.
First and foremost, we will see the differences there are between the W2 and a paystub. Like has already been mentioned, it is very easy for one who happens not to be as versed with the payroll system and the tax process to get mixed up with these two. It may even get all the more confusing when you get to receive your final paystub as you will realize that your total earnings will not be equal to what you have in your final paystub and your W2. Thus it is important to understand how they differ one from the other as this is an important line of separation. Read on and find out more on the things that differentiate your paystub, the final paystub and the W2 as have been highlighted in the following lines.
We start with a look at what a paystub is. Primarily a paystub is just but that paycheck you receive from your employer every time you get paid. The details in your paystub will be such as to include your pay, including the much that you earned for that particular pay period and as well will have the year-to-date payroll. Over and above this, the paystub will have some details on the deductions and the taxes that have been off the sum earnings. After all this is done, your paystub will finally show what your net earnings are which are essentially now the actual amount that you get to carry home from the paycheck.