Many tax forms need complicated calculations or table references to tally a key value, or may need extra data that is only relevant in several cases. Rather than incorporating the calculations within the main form, they are oft offloaded on a separate worksheet. The worksheet may be incorporated within 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 USA, income tax is withheld from the payments made by corporate to employees. If taxes are significantly unpaid, 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 assuming the taxes that need to be settled, but various tax elements may lead it to be wrong, like burdens, tax deductions, or income from other sources.
The W-4 form authorizes the employee to choose an exclusion level to bring down the tax %factoring (to evade overpayment), or define an additional amount above the standard amount (to evade underpayment). The form comes with two worksheets, 1 to tally exemptions, or the other to tally the effects of other income (second job, wife 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, or the worksheets are discarded or kept by the employee.
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