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Form W-2 is a key tax document for anyone working in the United States. Officially called the Wage and Tax Statement, it summarizes how much an employee earned and how much tax the employer withheld throughout the year.
Read on for a breakdown on what a W-2 is used for, what does a W-2 look like, who gets a W-2, and when employees should expect to receive it from their employers.
Form W-2, Wage and Tax Statement, is a required Internal Revenue Service (IRS) document that shows detailed information about an employee's annual earnings and the taxes withheld.
Every employee who earns a certain minimum amount from an employer or has taxes withheld from their pay must receive a Form W-2 to accurately report their income on their state and federal income tax returns.
The W-2 tax form helps both employers and the IRS track annual wages and tax withholdings.
Understanding the W-2 form can help ensure accurate payroll records and tax filings.
The main purpose of the W-2 form is to report annual wages and the amount of taxes withheld to the IRS and the Social Security Administration (SSA).
Employees rely on their W-2s to file their federal and state income taxes. The form also helps to track Social Security and Medicare contributions, which can affect future benefits.
Employers must send a Form W-2 to each employee they pay $600 in wages or more in a calendar year. They also must submit one if they withheld any taxes, such as income, Social Security, or Medicare, regardless of the amount the employee earned.
Individuals may receive multiple W-2s if they worked more than one job or changed jobs during the tax year.
Form W-2 is due to employees and the IRS by January 31 for the preceding calendar year.
Businesses that engage independent contractors must complete and distribute Form 1099-NEC.
The IRS requires employers to send W-2 forms to employees by January 31 each year. This allows employees to have time to prepare and file their taxes by the April 15 tax filing deadline.
Businesses can deliver W-2 forms to employees by mail, through an online payroll portal, or via secure email systems. If you haven’t received your W-2 by early February, it’s important to follow up with your employer or HR team to avoid delays in your tax filing.
Businesses also must file W-2 forms with the IRS and the Social Security Administration by January 31. Late or incorrect submissions can result in penalties. Late submissions can also hold up employees’ ability to file their tax return, which could lead to penalties and financial strain for them.
Form W-2 is a one-page document with several boxes that summarize an employee’s earnings, and the taxes withheld over the tax year. It includes both employee and employer details, such as names, addresses, and employer identification number (EIN).
It is laid out to provide the required details for employees to accurately file their taxes.
Form W-2 includes numbered boxes that provide key information, such as:
The form also includes employee and employer identifying information for identification and record-keeping.
When people ask What are two important items detailed in your W-2 form?—they’re usually referring to total wages and taxes withheld from pay.
Common errors on Form W-2 can include misspelled names or incorrect Social Security numbers. There can also be mistakes in wage and tax withholding amounts.
If you spot an error on your W-2, ask your employer for a corrected form, also known as Form W-2c, as soon as possible. Fixing this quickly can help avoid filing delays or audit complications.
Federal law requires employers to retain payroll records for at least three years. The Department of Labor developed resources outlining the requirements to help covered employers maintain their compliance with federal wage and hour laws.
The Internal Revenue Service (IRS) advises keeping employment tax records for a minimum of four years. Depending on your situation, it may be a good idea to keep some records for up to 7 years, according to the IRS.
State laws vary. Some states follow federal requirements, while others may require longer retention for payroll documents, including pay stubs. Employers should check their state’s specific requirements to help ensure compliance.
Retrieving Past W-2s
Need a past W-2? Here are a few ways for individuals to get a copy:
Once you have your W-2, keep it in a safe place. Here are some ways to consider storing it:
Form W-2 plays a key role during tax season. It shows how much an employee earned, what was withheld, and helps make sure everything is reported correctly to the IRS.
Individuals should double-check their W-2 each year before filing their taxes. Questions should be directed to their employer or tax professional.
SurePayroll can help take the stress out of payroll taxes by handling tax calculations, filings, and deposits for you.
For over 25 years, we’ve helped businesses stay focused on what matters—building your business, training your team, and taking care of your customers.
See how easy it can be to simplify payroll with SurePayroll.
This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up to date
