A Form W‑2, officially called the Wage and Tax Statement, is a tax form that employers must provide to employees and the IRS each year. It reports an employee’s total wages earned and the taxes withheld from their pay during the year.
Key Information Reported on a W‑2
A W‑2 typically includes:
- 💵 Employee earnings
- Wages, tips, and bonuses
- 🇺🇸 Federal income tax withheld
- 🧑⚕️ Social Security tax withheld
- 🏥 Medicare tax withheld
- 🏛️ State and local tax information (if applicable)
- 🆔 Employer and employee identifying information
🧾 Why the W‑2 Matters for Tax Filing
- 📝 Taxpayers use the W‑2 to prepare federal and state income tax returns
- ⚖️ It helps determine whether the taxpayer:
- Owes additional tax, or
- Is due a refund
- 🔍 The IRS uses the W‑2 to verify reported income and tax payments
📅 When to Expect a W‑2
- 📬 Employers must send Form W‑2 by January 31 of the year following the year the wages were paid
- 📨 Copies are sent to:
- The employee
- The Social Security Administration (SSA), which shares data with the IRS
🔄 W‑2 vs. Other Common Forms
- 👩💼 W‑2 → Employees (wages and withholding)
- 🧾 1099‑NEC → Independent contractors (non‑employee compensation)
- 📝 W‑4 → Tells employer how much tax to withhold
- 📄 W‑9 → Provides taxpayer info to businesses (not employees)