Many tax forms require complex calculations or table references to calculate a key value, or may require extra data that is only relevant in some cases. Rather than combining the calculations within the main form, they are oftentimes offloaded on a several worksheet. The worksheet may be incorporated within 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 US, income tax is withheld from the salary made by employers to employees. If taxes are significantly underwithheld, 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 basic formula for assessing the taxes that require to be paid, 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 choose an exemption level to lower the tax %factoring (to evade overpayment), or define an extra amount over the basic number (to evade underpayment). The form comes with 2 worksheets, 1 to calculate discounts, or the other to calculate the result of other income (2nd job, spouse's job). The bottom numeric 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, or the worksheets are disposed or kept by the employee.
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