A W-2 form is a tax form used in the United States to report information about money earned and taxes deducted to the Social Security Administration (SSA), the IRS, and employees. Employers create these forms for their employees and send copies to the SSA. Employees use one W-2 form, or more if they’ve worked for more than one company, to help file their tax returns. The form includes information such as wages, tips, and compensation, federal purchase tax withheld, and more. If people work for more than one employer during the year, they can expect a W-2 from each.
A form W-2 is a tax form created by the Internal Revenue Service (IRS) in the United States. It is also called a Salary and Tax Reporting and is used to report information about money earned and taxes deducted to the Social Security Administration (SSA), the IRS, and employees. Employers create these forms for their employees and send copies to the SSA. The SSA then sends the information from the W-2 to the IRS.
Employees use one W-2 form, or more if they’ve worked for more than one company, to help file their tax returns. They usually receive several copies so they can keep one for their own records and file the other copies with federal, state and local tax agencies. Of great importance on these forms is the salary earned and the amount of tax payment.
All workers tend to get their W-2s at about the same time each year. The government requires employers to send them to employees by February 2, and they must then submit them to the SSA by March 2.
Anyone who worked for an employer during the year and was paid for their work between January 1 and December 31 should receive a W-2, even if little money was taken in taxes. Individuals working as independent contractors do not receive this form; instead, they receive a 1099. Nonresident aliens working for U.S. employers typically receive a 1042-S instead of a W-2.
The form can have multiple components separated into boxes. It includes the employee’s name, company name, and employee’s Social Security number. The standard form has 20 numbered boxes, which include the following information:
Wages, tips and compensation
Federal purchase tax withheld
Social Security wages
Social Security Tax withheld
Medicare wages and tips
Medicare fee withheld
Social Security tips
Tips assigned
Employed Income Credit (EIC) Advance Payment
Benefits for assistance to dependent people
Other categories include amounts paid to state and local income taxes.
Not all employees will have filled in every box on the form; depends on the employee’s status, income and deductions which may be non-taxable. Other variables include whether a state or local area rates taxes.
If people work for more than one employer during the year, they can expect a W-2 from each. When not received, employees or former employees should contact that employer. If people file taxes with more than one W-2 form, all amounts must be combined to accurately report wages and withholding taxes. Income tax forms typically reference specific box numbers so people know where to look on their W-2s to find the information they need for income tax forms.
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