There are those people that will have to wait for the W2 form so as to get the tax return when there is another way of getting it without waiting for the W2 form. 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. The discussion below is on how to calculate W2 from a paystub.
The first thing that you will have to do is to get the gross income. When we talk about the gross income we mean all the money that you have to earn without deducting anything. It is true that when you exclude some amount or deduct anything that you are not supposed to deduct you will not get the gross income. If you do what is supposed to be done you will get the exact amount that you will have earned.
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. 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. We have those people that will not understand what non-taxable wages are well, they are those wages that do not include income, federal or state taxes. 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. Using your paystub you can get the sum of your deductions so that you can subtract from the amount you had. You will have the same value in the paystub as that in the W2.
The other step is to get the annual taxes and finally calculate the W2 earnings. There is always that amount of taxes that will be withheld from you annually. One will be able to get the amount that has been held that year when they multiply the amount held each month by the times they have been paid. Finally you will get your W2 earnings by subtracting the amount withheld from the amount that you got in step three.