Many tax forms require complicated calculations or table references to calculate a key value, or may require additional information that is only relevant in several cases. Rather than incorporating the calculations into the primary form, they are oft offloaded on a separate worksheet. The worksheet may be combined into the filing package, or may only be a tool for the filer to figure out the value, but without needing the worksheet to be filed.
As an example, in the US, 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, or if they are overpayment, the employee gets a refund for the overpayment of taxes. There is a base formula for estimating the taxes that require to be settled, but some tax factors may lead it to be wrong, like burdens, tax deductions, or income from other sources.
The W-4 form allows the employee to choose an exemption level to lower the tax %factoring (to evade overpayment), or define an extra amount over the standard number (to evade underpayment). The form arrive with 2 worksheets, 1 to calculate discounts, or the other to calculate the effects of other income (2nd job, spouse's 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, or the worksheets are disposed or held by the employee.
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