Many tax forms need complex calculations also table references to compute a key value, or may need additional data that is only relevant in some cases. Rather than merging the calculations into the main form, they are oft offloaded on a separate worksheet. The worksheet may be merged into the filing package, or may only be a equipment for the filer to get the value, but without needing the worksheet to be filed.
As an instance, in the USA, income tax is withheld from the salary made by corporate to employees. If taxes are significantly underwithheld, there is a penalty to the employee at the end of the year, also if they are overwitheld, the employee gets a refund for the overwitheld of taxes. There is a base formula for estimating the taxes that require to be paid, but various tax elements may cause it to be incorrect, alike burdens, tax discounts, or income from other sources.
The W-4 form permits the employee to pick an exemption level to bring down the tax %factoring (to avoid overwitheld), or establish an extra amount over the standard amount (to avoid underpayment). The form arrive with 2 worksheets, 1 to compute exemptions, also the other to compute the result of other income (second job, spouse's job). The bottom number in each worksheet is used to fill out 2 if the lines in the main W4 form. The main form is filed with the employer, also the worksheets are disposed or held by the employee.
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