How to Calculate a Calculate W-2 Wages from a Paystub
A W-2 is a form that shows all the taxes that have been deducted from your wages in a whole year. Each time your wages are remitted to you, you have a paycheck that comes with is called the paystub. Some things are included in the paystub like the deductions that have been made out of your total earnings. Most people will use the W-2 forms to make their tax returns. It is still possible to calculate tax returns without a W-2 form. You can do this by getting information from any of your paystubs. Those who do not know how to calculate W-2 wages from a paystub can look into this article to know how to go about the business.
Before you start calculating your W-2 wages from your paystub you will have to calculate your gross income. The calculation of the gross income is critical. This is the total earnings that you have made without any deductions. Your rate of work per hour is usually multiplied by the number of the weeks that you have been working on getting this. The paystub is one good source of such information. The paystub contains additional information that may relate to the add on such as the commissions, the overtimes, and the bonuses.
The second strategy that can be used to calculate W-2 wages from a paystub is to deduct non-taxable wages. Immediately after knowing your gross incomes you will have to get these deductions. Such incomes are not subjected to taxation. They should be added all and then subtracted from the gross income.
Thirdly, you will have to be able to explain all the deductions that are made. You may find some of the deductions that are made before taxes are deducted. The amount that you are going to remit for the tax deductions is very much reduced. Some people will have to remit the health insurance amounts, the employer benefits amounts, and the retirement accounts amount before you can be taxed. You need to sum up all these deductions and then subtract from the amount that you had received above after the deduction of the not taxable wages.
The next step is to find your yearly taxes. You will have to calculate the amount that you pay as taxes to any form of government.
Lastly, you will have to calculate your W-2 earnings. All the taxes should be put together. They should then be subtracted from the total amount that was received after all the deductions were made. Whatever you will come up with will represent your W-2 wages.
Those who do not have W-2 form and may want to calculate their ages can refer to the steps that have been mentioned in this article.