Employers are required by law to annually provide Form W-2 to employees as well as the IRS. The form lists the annual wages and taxes withheld for each employee. Each year, employees use the form to file their taxes as well. Find out more about Form W-2 (Wage and Tax Statement) below.
What is IRS Form W-2 (Wage and Tax Statement) ?
Form W-2, also known as the Wage and Tax Statement is a tax document that employers in the United States are required to provide to their employees at the end of each calendar year. The purpose of Form W-2 is to report the employee's wages and other compensation, as well as the taxes withheld from their paychecks.
The information on Form W-2 includes the employee's name, address, Social Security number, and total wages earned for the year. It also includes the amount of federal, state, and local taxes withheld from the employee's paycheck, as well as any other deductions, such as contributions to a retirement plan or health savings account.
Employees use the information on Form W-2 to prepare their federal and state income tax returns, and the form must be filed with the Social Security Administration (SSA) by the employer. The deadline for employers to provide employees with their W-2 forms and file them with the SSA is typically January 31st of the year following the tax year.
Key Facts of Form W-2
- An Internal Revenue Service (IRS) form called the W-2 lists the taxable income you received from an employer.
- Taxes deducted from your income, as well as contributions for Social Security and Medicare payments on your behalf by both you and your employer, are also listed on the form.
- The IRS and the employee are both informed on Form W-2 about the earnings from work and taxes deducted from those earnings.
- These specifics are used by employees to complete their annual tax returns.
- In general, employers have until January 31 to provide W-2 forms to employees for the prior tax year.
- Each eligible employee must have a Form W-2 prepared by the employer. Employers are often required to mail or deliver your Form W-2 to you.
- If an employer won't or can't provide you with a Form W-2 before the middle of February of the new year, you can call the IRS at 800-829-1040.
How the Form W-2 Works ?
Form W-2 is the document an employer is required to send to each employee and the Internal Revenue Service at the end of the year. Employees' annual salary and the amount of taxes deducted from their paychecks are listed on a W-2. If your employer withholds taxes from your paycheck and reports this information to the government, you are a W-2 employee.
Here's a brief overview of how the Form W-2 works :
- Throughout the year, an employer keeps track of each employee's wages, tips, and other compensation, as well as the taxes that are withheld from their paycheck.
- At the end of the year (by January 31st of the following year), the employer prepares a Form W-2 for each employee who worked for them during the previous year.
- The Form W-2 includes the employee's name, address, Social Security number, and other identifying information, as well as their total wages, tips, and other compensation earned during the year.
- The form also includes the total amount of federal, state, and local income taxes that were withheld from the employee's paycheck, as well as any other deductions, such as contributions to a retirement plan or health savings account.
- The employer gives the Form W-2 to the employee, who uses it to prepare their federal and state income tax returns. The employee also keeps a copy for their records.
- The employer also sends a copy of the Form W-2 to the Social Security Administration (SSA), which uses the information to credit the employee's earnings to their Social Security record.
It's important to note that employees must receive their Form W-2 by January 31st of the year following the tax year, and employers must file the forms with the SSA by the same deadline.
Who Must File Form W-2 ?
Employers are responsible for filing Form W-2 with the Social Security Administration (SSA) and providing a copy to each employee who worked for them during the previous calendar year.
Every employee who has received a salary, wage, or other type of compensation must receive a W-2 form from their employer per the law. Contract or self-employed workers are excluded since they must use various tax forms to file their taxes.
Employers must use W-2 forms to report FICA (Federal Insurance Contributions Act) taxes for their employees throughout the year. If you are an employer who pays wages subject to income tax withholding, Social Security tax, or Medicare tax, you must file Form W-2 for each employee who worked for you during the year, regardless of whether they are full-time, part-time, or seasonal employees.
You also must file Form W-2 if you withheld any federal income tax, Social Security tax, or Medicare tax from an employee's wages, even if the employee is no longer working for you.
It's important to note that there are penalties for failing to file Form W-2 or for filing it late, so it's essential that employers meet the filing deadline of January 31st of the year following the tax year.
How to File Form W-2 ?
A W-2 will be automatically given to you each year by your employer if you are an employee of a firm and need one for your income taxes. Also, your employer will send a copy of your W-2 to the IRS.
The information from your W-2 must be manually or electronically entered into a Form 1040 individual tax return when you prepare your income taxes. In many situations, online tax preparation software now enables you to immediately import the data from your payroll provider that appears on your W-2.
Employers can file Form W-2 electronically or by mail. Here are the steps to follow for each method :
1) Electronic filing :
You can file Form W-2 electronically using the Social Security Administration's Business Services Online (BSO) website. To use this option, you must register for a BSO account and follow the instructions for uploading your W-2 data. This is the preferred method for most employers because it's faster, more accurate, and less prone to errors.
2) Paper filing :
If you choose to file Form W-2 by mail, you'll need to fill out a paper copy of the form for each employee and mail it to the Social Security Administration (SSA) along with a Form W-3, which is a summary of all the W-2s you're submitting. You can order pre-printed copies of Form W-2 and Form W-3 from the IRS or download and print them from the IRS website. You'll need to complete the forms manually or using a typewriter, and mail them to the SSA by the deadline.
Regardless of whether you choose to file electronically or by mail, you must also provide each employee with a copy of their Form W-2 by January 31st of the year following the tax year. It's important to ensure that your Form W-2s are accurate and complete, as errors or omissions can result in penalties from the IRS.
What Information is Included in Form W-2 ?
Form W-2 includes a variety of information related to an employee's compensation and tax withholdings. Here's a breakdown of what information is included on the form :
1) Employee information :
This includes the employee's name, address, and Social Security number.
2) Employer information :
This includes the employer's name, address, and Employer Identification Number (EIN).
3) Wage and salary information :
This includes the employee's total wages, tips, and other compensation earned during the year.
4) Federal income tax withholding :
This includes the total amount of federal income tax that was withheld from the employee's paycheck during the year.
5) Social Security and Medicare tax withholding :
This includes the total amount of Social Security tax and Medicare tax that was withheld from the employee's paycheck during the year.
6) State and local tax withholding :
If applicable, the form may also include information on state and local income tax that was withheld from the employee's paycheck during the year.
7) Other deductions :
This includes any other deductions that were taken from the employee's paycheck during the year, such as contributions to a retirement plan or health savings account.
8) Employer contributions :
If applicable, the form may also include information on employer contributions to a retirement plan or other benefit programs.
It's important to note that Form W-2 is a summary of an employee's tax information for the year, and it is used by both the employee and the IRS to ensure that the correct amount of taxes were withheld from the employee's paycheck.
How Can I Get Form W-2 ?
If you are qualified, your employer is required to give you a copy of your W-2 each year. W-2s may be delivered by mail in hard copy or made electronically accessible online, either by the employer or through their payroll provider.
If you're an employee who needs to get a copy of your W-2 form, here are a few steps you can take :
1) Check your mailbox :
Your employer is required to mail you a copy of your W-2 form by January 31st of the year following the tax year, so it's possible that it's already on its way to you. Make sure to check your mailbox, and if you've moved since you last worked for that employer, contact them to provide them with your current address.
2) Contact your employer :
If you haven't received your W-2 form by mid-February, contact your employer and ask them to send you a copy. Make sure to provide them with your current address or any other information they may need to locate your record.
3) Use the Social Security Administration's (SSA) online tool :
If you've tried to contact your employer but haven't been able to get a copy of your W-2 form, you can use the SSA's online tool to request a copy of your wage and income transcript. This transcript includes information from your W-2 forms for the past 10 years, and it can be used to file your tax return.
4) File a substitute form :
If you've tried all of the above methods and still haven't been able to get a copy of your W-2 form, you can file a substitute form with your tax return. To do this, you'll need to fill out Form 4852, which is a substitute for Form W-2 or Form 1099-R. Make sure to provide as much information as possible, including your employer's name and address, and attach the form to your tax return.
It's important to note that you should always try to get a copy of your W-2 form directly from your employer if possible, as this is the most accurate and reliable source of information.
How to Read Form W-2 ?
Here are the steps to fill out a W-2 form :
1) Check the employee and employer information :
At the top of the W-2 form, you will find the employee's name, address, and Social Security number, as well as the employer's name, address, and Employer Identification Number (EIN).
2) Look for the wages and tax withholding information :
The W-2 form will provide you with information about the employee's wages and tax withholdings for the year. The wages are reported in Box 1, and the federal income tax withheld is reported in Box 2.
3) Check the Social Security and Medicare taxes :
The amount of Social Security tax withheld is reported in Box 4, and the amount of Medicare tax withheld is reported in Box 6.
4) Check for state and local taxes :
If the employee is subject to state or local taxes, the amounts withheld will be reported in Boxes 15-17.
5) Review other compensation and benefits :
Some forms of compensation and benefits, such as retirement plan contributions or employer-provided health insurance, may be reported on the W-2 form in Boxes 12-14.
6) Check the total amount of taxes paid :
The total amount of taxes paid by the employee for the year will be reported in Box 18.
It's important to note that the W-2 form is used to report the employee's earnings and taxes for the previous year, so if you're looking for current year information, you will need to consult more recent documents.
Frequently Asked Questions
What is the difference between a form W-2 and W-4?
Employees fill out a W-4 to inform their employer of their tax ID number (often their SSN), marital status, number of dependents and allowances, and the amount of tax to be deducted from each paycheck. When an employee is employed for the first time or if withholding or filing status needs to be changed, the W-4 form is completed. Employers complete the W-2 and send it to employees for inclusion on their tax returns at the conclusion of the tax year.
What should I do, if my form W-2 is lost?
If your W-2 is online, you may access it as often as necessary. It's common to ask for automated password recovery if you've forgotten your login information for an online site. You should speak with your payroll or HR supervisor if you still require assistance with accessing your information online or if you require a fresh paper copy.
Who should fill out the W-2 form?
If you worked for a company full- or part-time and made at least $600, you must complete a W-2.
What is the purpose of the form W-2?
The W-2 is used to record an employee's pay, taxes, and other elements of their employer's remuneration to the IRS.
Who uses a W-2 form?
Anyone who is employed and receives wages or salary from an employer will typically receive a W-2 form. A W-2 form is used by employers to report the wages, salaries, and other compensation paid to their employees over the course of a year. The W-2 form also reports the amounts of federal, state, and other taxes withheld from an employee's paycheck.
How much money must you earn to get a W-2?
A W-2 will typically be sent to you by your employer if you made at least $600 during the tax year. A W-2 will also be given to you if your employer withheld taxes from any earnings you made. Remember that you would most likely receive a 1099 rather than a W-2 if you were a contractor rather than an employee.