Many tax forms require complex calculations or table references to compute a key value, or may require additional data that is only relevant in several cases. Rather than incorporating the calculations within the main form, they are often offloaded on a separate worksheet. The worksheet may be combined within the filing package, or may only be a instrument for the filer to figure out the value, but without needing the worksheet to be filed.
As an example, in the US, income tax is withheld from the payments made by company 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 basic formula for assuming the taxes that need to be paid, but several tax factors may lead it to be wrong, alike burdens, tax discounts, or income from other sources.
The W-4 form allows the employee to opt an exclusion level to bring down the tax elementing (to avoid overwitheld), or assign an extra amount over the standard amount (to avoid underpayment). The form arrive with two worksheets, 1 to compute exemptions, or another to compute the result of other income (second job, husband job). The bottom numeric in each worksheet is utilized for 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 held by the employee.
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