Many tax forms require complex calculations and table references to compute a key value, or may require extra information that is only relevant in several cases. Rather than merging the calculations into the primary form, they are oftentimes offloaded on a different worksheet. The worksheet may be combined into the filing package, or may only be a instrument for the filer to get the value, but without requiring the worksheet to be filed.
As an example, in the United States, income tax is calculated from the payments made by company to employees. If taxes are significantly unpaid, there is a penalty to the employee at the end of the year, and 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 certain tax elements may cause it to be wrong, such as dependents, tax deductions, or income from other sources.
The W-4 form enables the employee to choose an exclusion level to bring down the tax elementing (to evade overwitheld), or establish an additional amount over the standard amount (to evade underpayment). The form arrive with 2 worksheets, 1 to compute discounts, and another to compute the effects of other income (2nd job, spouse's job). The bottom numeral in each worksheet is utilized for fill out 2 if the lines in the primary W4 form. The primary form is filed with the employer, and the worksheets are discarded or held by the employee.
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