Many tax forms need complex calculations also table references to compute a key value, or may need supplemental data that is only relevant in several cases. Rather than merging the calculations into the main form, they are often offloaded on a separate worksheet. The worksheet may be combined into the filing package, or may only be a equipment for the filer to figure out the value, but without requiring the worksheet to be filed.
As an instance, in the United States, income tax is withheld from the salary 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 basic formula for estimating the taxes that require to be settled, but some tax elements may lead it to be wrong, like dependents, tax deductions, or income from other sources.
The W-4 form permits the employee to opt an exemption level to bring down the tax %factoring (to evade overpayment), or define an extra amount above the basic number (to evade underpayment). The form comes with two worksheets, one to compute exemptions, also another to compute the result of other income (second job, spouse's job). The bottom number in each worksheet is used to fill out two if the lines in the main W4 form. The main form is filed with the employer, also the worksheets are discarded or kept by the employee.
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