Many tax forms require complex calculations or table references to calculate a key value, or may require supplemental data that is only relevant in some cases. Rather than incorporating the calculations into the main form, they are oft offloaded on a separate worksheet. The worksheet may be incorporated into the filing package, or may only be a instrument for the filer to figure out the value, but without requiring the worksheet to be filed.
As an instance, in the US, income tax is taken 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 overwitheld, the employee gets a refund for the overwitheld of taxes. There is a base formula for estimating the taxes that require to be settled, but certain tax elements may lead it to be incorrect, such as burdens, tax discounts, or income from another sources.
The W-4 form allows the employee to choose an exclusion level to degrade the tax %factoring (to avoid overwitheld), or establish an extra amount over the standard amount (to avoid underpayment). The form comes with 2 worksheets, one to calculate discounts, or the other to calculate the result of another income (second job, wife job). The bottom numeric in each worksheet is utilized for fill out 2 if the lines in the main W4 form. The main form is filed with the employer, or the worksheets are discarded or held by the employee.
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