Receiving a number of Wage and Tax Statements (Types W-2) from a single employer inside a single tax yr can happen for a number of causes. This may occur if an worker labored underneath completely different roles or departments inside the identical firm, every having a definite payroll. It might additionally come up from a change within the employer’s payroll system or a correction to beforehand issued varieties. For instance, an worker may obtain a corrected W-2 after reporting an error of their preliminary assertion.
Guaranteeing correct tax reporting is essential when coping with a number of W-2s. Every kind represents particular earnings and withholdings, all of which should be mixed when submitting an annual tax return. Precisely reporting revenue from every W-2 helps keep away from discrepancies with IRS data, doubtlessly resulting in penalties or audits. Correct dealing with of those varieties additionally supplies a complete view of a person’s earnings from that employer, helpful for monetary planning and mortgage functions.