most tax forms need complex calculations also table references to tally a key value, or may need additional data that is only relevant in some cases. Rather than incorporating the calculations into the primary form, they are often offloaded on a separate worksheet. The worksheet may be incorporated into the filing package, or may only be a equipment for the filer to figure out the value, but without needing the worksheet to be filed.
As an instance, in the US, income tax is calculated from the payments made by corporate to employees. If taxes are significantly unpaid, there is a penalty to the employee at the end of the year, also if they are overpayment, the employee gets a refund for the overpayment of taxes. There is a base formula for assessing the taxes that need to be settled, but several tax factors may cause it to be wrong, such as dependents, tax deductions, or income from another sources.
The W-4 form enables the employee to select an exemption level to reduce the tax %factoring (to avoid overpayment), or set an additional amount over the basic number (to avoid underpayment). The form comes with 2 worksheets, 1 to tally exemptions, also another to tally the outcome of another income (2nd job, wife job). The bottom number 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, also the worksheets are disposed or kept by the employee.
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