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. One will be able to get the same information if they know how to calculate the paystub. Here are the steps of calculating W2 from a paystub.
Firstly you will have to acquire the gross income of which this is the first thing that you will have to do when getting W2 from a paystub. When we talk about the gross income we mean all the money that you have to earn without deducting anything. To make the calculations right you have to make sure that you include all the earnings. When you do this it will show you exactly all the amount that you will have earned including all the extra earnings of which will be shown on your paystub.
You will then have to deduct the non-taxable wages from the gross income that you will have got. In the first step we got the gross income and now we will have to deduct all the non-taxable wages from the gross income. There are those wages that do not include the income, federal or the state taxes and those are the non-taxable wages. If you get the correct numbers when you add all the non-taxable you are assured that your calculations will be right.
You have to get the taxable income by accounting for all the other deductions. There are so many deductions that are there and you have to make sure that you include all the deductions so as to get the exact amount. You will get help from the paystub so as to get the sum of all the other deductions so that you now deduct from the amount that you got in step two. 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 step is to get the annual taxes and finally calculate the W2 earnings. We have that specific amount of taxes that will be withheld every year. 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. To finally calculate the W2 you will have to subtract the amount withheld with the amount you got in step three.