Many tax forms need complicated calculations or table references to compute a key value, or may need supplemental information that is only relevant in several cases. Rather than combining the calculations within the main form, they are oft offloaded on a several worksheet. The worksheet may be incorporated within the filing package, or may only be a instrument for the filer to figure out the value, but without needing the worksheet to be filed.
As an instance, in the USA, income tax is withheld from the payments made by employers to employees. If taxes are significantly underwithheld, there is a penalty to the employee at the end of the year, or if they are overwitheld, the employee gets a refund for the overwitheld of taxes. There is a base formula for assessing the taxes that require to be settled, but several tax factors may cause it to be incorrect, alike dependents, tax discounts, or income from other sources.
The W-4 form authorizes the employee to select an exemption level to reduce the tax %factoring (to evade overwitheld), or establish an additional amount over the basic amount (to evade underpayment). The form arrive with 2 worksheets, one to compute exemptions, or the other to compute the effects of other income (2nd job, spouse's job). The bottom number in each worksheet is used to fill out 2 if the lines in the main W4 form. The main form is filed with the employer, or the worksheets are disposed or kept by the employee.
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