What Is Form W-2: Wage and Tax Statement?

Form W-2, also known as the Wage and Tax Statement, is a document an employer sends to each employee and files with the Social Sec🔯urity Administration (SSA) by the end of January following the tax year. The IRS gets a copy.

Form W-2 shows the wages paid by an employe🎐r🎶 and the amount of income withheld from employee paychecks for income taxes, Social Security taxes, and Medicare taxes.

Who Files Form W-2?

An employer must send out a W-2 form to every employee 🌊to whom they paid a salary, wage, or other form of compensation. This does not include contracted or self-employed workers, who file taxes with different forms.

The employer must send the employee the W-2 form on or before Jan. 31 each year so that the employee has the information they need to file an income tax return before the deadline, commonly April 15.

Employers use W-2 forms to report the income withheld for 澳洲幸运5开奖号码历史𒀰查询:Federal Insurance Contributions Act (FICA) taxes and income taxes.

By the end of January, employers must file Form W-2 wiꦗth the SSA, along with Form W-3, for each employee.

The SSA uses the information on these forms to calculate the Social Security benefits that each worker is entitled to.

Information Included on a W-2

Taxpayers will receive 🐼multiple W-2s if they work for more than one employer.

Taxpayers input the data found on the W-2 into a Form 1040 individual tax return, either by hand or electronically. Regardless of the employer or company, every W-2 provides the same information:

• State and federal tax sections since employees must file taxes at both levels
• Employer information, including the company's federal 澳洲幸运5🅠开奖号码历史查询:Employer Identification Number (EIN) and state ID number
• Employee income for the previous year
• Income withheld from the employee's paychecks separated into the withholding for federal income tax, Social Security and Medicare taxes, and more
• Tips, if any, that the employee received for the year

How to Read Form W-2

Form W-2 is available on the .

• Boxes A-F: The lettered boxes on a W-2 are for the name and address of the employee and employer, Social Security number, and employer's EIN and state ID number.
• Boxes 1-2: Box 1 shows taxable income, including wages, salary, tips, and bonuses. Box 2 shows how much income for federal income tax the employer withheld.
• Boxes 3-4: Box 3 details the earnings subject to Social Security tax. Box 4 shows the amount of income withheld for Social Security tax.
• Boxes 5-6: Box 5 details how much pay is subject to the Medicare tax. Box 6 shows how much income was withheld. The employee portion of the Medicare tax is 1.45% of income.
• Boxes 7-8: If any income is in the form of tips, these boxes show how much was reported and subject to tax.
• Box 9: This box was used to reflect a now-defunct tax perk, so it is no longer used.
• Box 10: Box 10 reports how much an employee received from their employer in dependent care benefits (if applicable).
• Box 11: Box 11 details how much 澳洲幸运5开奖号码历史查询:deferred compensation was received from the employer in a 澳洲幸运5开奖号码历史查询:non-qualified plan.
• Box 12: Box 12 shows other types of compensation or reductions from taxable income and a single or double letter code for each. It might include contributions to a 澳洲幸运5开奖号码历史查询:401(k) plan. Codes are detailed in the .
• Box 13: This box has three sub-boxes designed to report pay not subject to federal income tax withholding for an 澳洲幸运5开奖号码历史查询:employer-sponsored retirement plan such as a 澳洲幸运5开奖号码历史查询:SIMPLE IRA, and sick pay via a third-party, such as an insurance policy.
• Box 14: In Box 14, an employer can report any additional tax information that may not fit into the other sections, such as state disability insurance taxes and union dues.
• Boxes 15-20: The last six boxes relate to state and local taxes, including how much income is subject to these taxes and how much was withheld.

Related Tax Forms

Form W-4

Form W-4 is completed by employees when they start working for a comp♌any. The employer uses the information on Form W-4 to determine how much income to withhold from paychecks for taxes.

The information on Form W-4 (or sometimes Form W-9) helps track payroll, tax withholding, employer-provided benefits, and pre-tax contributions to things like a 401(k) retirement plan. 

Forms 1099

When income for taxes is not withheld from income received, an employee will receive 澳洲幸运5开奖号码历史查询:Form 1099-MISC, which details the earnings and any deductions.

A person who is paid by a company for services rendered but isn't an employee receives 澳洲幸运5开奖号码历史查询:Form 1099-NEC, which shows the amount paid.

All type🐭s of 1099 forms should arrive by the end of January following the tax year. Individuals must report this income on their annual tax return.

Form W-2G

澳洲幸运5开奖号码历史查询:Form W-2G is a tax form that a gaming facility such as a casino may send if a taxpayer received winnings from gambling in the prior year.

Form 1098-E and Form 1098-T

Students receive a 1098-E statement when they've paid interest on a federal student loan. They also receive a 1098-T statement reporting college tuition expenses that might entitle students to tax deductions or credits.

The Bottom Line

Form W-2 is an IRS document that employers must send to an employee, the SSA, and the IRS every year. The form reports an employee's annual wages and the taxes withheld. Employees use the form to file their taxes.