It is evident that you don’t have to wait for the W2 so as to have your tax return hence you can always get it from your paystubs. One doesn’t have to worry that they will get different information it is evident that the same information that you will have in the W2 form is the same one that you will have in the paystub. It is, therefore, important to make sure that the information that you will have in the pay stub will be the same as that of the W2 by knowing how the calculations are done. Here are the steps of calculating W2 from a paystub.
The first thing that you will have to do is to get the gross income. Gross income will always be that amount that you will earn without subtracting anything. You have to make sure that you will not exclude any amount you have to include everything. Your pay stub will show you all the amount that you are supposed to earn meaning it will include all the earnings.
The other thing that you will have to do is to subtract the non-taxable wages from the gross income that you will have acquired. Since we will have to get the gross income, you will now have to deduct all the non-taxable wages from that amount. When we talk of the non-taxable wages we refer to all those wages that do not have income, federal or the state taxes. If you get the correct numbers when you add all the non-taxable you are assured that your calculations will be right.
The other thing that you will have to get is the taxable income which you will get by accounting for all the deductions. You are guaranteed to get the correct amount if you do include all the other deductions that are there. It is very important to make sure that you first get the sum of the other deductions before you subtract them from the amount you have. After the subtraction you will get the taxable income of which will always match the amount that should have been in the W2 form.
The other thing that you will have to do is to calculate the annual taxes and then get the W2 earnings. There is always that amount of taxes that will be withheld from you annually. When you multiply the amount that is withheld every month by the number of times that you will have been paid you will get the amount that will have been withheld that year. Finally you will get your W2 earnings by subtracting the amount withheld from the amount that you got in step three.