most tax forms require complicated calculations also table references to calculate a key value, or may require additional data that is only relevant in some cases. Rather than incorporating the calculations within the primary form, they are often offloaded on a several worksheet. The worksheet may be incorporated within the filing package, or may only be a equipment for the filer to get the value, but without requiring the worksheet to be filed.
As an instance, in the United States, income tax is withheld 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, 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 some tax elements may lead it to be wrong, alike burdens, tax deductions, or income from other sources.
The W-4 form permits the employee to select an exemption level to lower the tax %factoring (to avoid overpayment), or set an extra amount over the standard amount (to avoid underpayment). The form arrive with two worksheets, one to calculate discounts, also the other to calculate the result of other income (2nd job, wife job). The bottom numeral in each worksheet is used to fill out two if the lines in the primary W4 form. The primary form is filed with the employer, also the worksheets are discarded or kept by the employee.
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