Now we're going to define a W-2. When the current income tax structure was created in 1954, the Internal Revenue Service developed a pay-as-you-go system for the collection of taxes from wage earners. Each week or month that we receive a paycheck, the employer withholds income taxes on our behalf from those earnings. At the end of the year, a W-2 form is prepared for each employee, and a copy of it is provided to the employee. The form shows all of their earnings and the various taxes withheld on their behalf. This W-2 form is then sent to the IRS so that they know how much the employee made. A copy of the form is also given to the employee, so they know how much they made and can get credit for the taxes they've paid on their annual income tax return. The W-2 is not just a concept, it is an actual form called W-2.
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Video instructions and help with filling out and completing Are Form 2350 Accounting
