Many tax forms need complicated calculations also table references to calculate a key value, or may need extra data that is only relevant in some cases. Rather than combining the calculations into the main form, they are oft offloaded on a different 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 USA, 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 overwitheld, the employee gets a refund for the overwitheld of taxes. There is a base formula for assessing the taxes that need to be settled, but various tax elements may cause it to be incorrect, such as burdens, tax discounts, or income from other sources.
The W-4 form enables the employee to pick an exemption level to lower the tax elementing (to avoid overwitheld), or specify an extra amount above the basic number (to avoid underpayment). The form arrive with 2 worksheets, one to calculate discounts, also the other to calculate the outcome of other income (2nd job, wife job). The bottom numeral 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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