W-2 Tax Form

IRS 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.

As an employer, issuing W-2s accurately and on time is a legal obligation and the foundation of a compliant year-end.

SurePayroll® By Paychex generates W-2s: calculated and ready to distribute to your employees, then filed with the SSA on Form W-3.  

‍What is a W-2 tax form?

‍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 gives both employers and the IRS a record of annual wages and tax withholdings.

‍What is the W-2 form used for?

‍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 tracks Social Security and Medicare contributions, which can affect future benefits.

‍Who gets a W-2?

‍Every employee you paid wages to during the year gets a W-2. As their employer, you're required to issue one if you withheld federal income tax, Social Security, or Medicare taxes, or if you paid them $2,000 or more in 2026. If you withheld any taxes, a W-2 is required regardless of the total amount paid.

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. If January 31 falls on a weekend or holiday, the form is due by the next business day.  

Businesses that engage independent contractors or other self-employed workers must complete and distribute Form 1099-NEC.

‍W-2 delivery deadline for employees

‍The IRS requires employers to send W-2 forms to employees by January 31 each year. Since January 31, 2027, falls on a Sunday, W-2s for 2026 wages are due by February 1, 2027. This allows employees time to prepare and file their state and federal tax (Form 1040) return 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 an employee asks about a missing W-2, SurePayroll customers can direct them to the employee self-service portal.

‍W-2 filing deadline with the IRS and SSA

‍Businesses also must file W-2 forms with the IRS and the Social Security Administration by January 31 each year. For 2026 wages, that deadline is February 1, 2027. Late or incorrect submissions can result in payroll penalties. Late submissions can also hold up employees' ability to file their tax return, which could lead to penalties and financial strain for them.

Penalties scale with how late the correction comes: $60 per form within 30 days, $130 per form by August 1, and $340 per form after that or if the return is never filed, according to IRS Rev. Proc. 2025-32, for returns required to be filed in 2027. Intentional disregard carries a penalty of at least $690 per form, with no cap.  

‍What does a W-2 look like?

‍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).

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Understanding the W-2 boxes

Form W-2 includes numbered boxes that provide key information for taxpayers, such as:

• Box 1: Total taxable wages, tips, bonuses, and other compensation

• Box 2: Total federal income tax withheld

• Boxes 3 and 4: Social Security taxes and wages withheld (FICA)

• Boxes 5 and 6: Medicare wages and taxes (FICA)

• Boxes 7 and 8: Tips

• Box 10: Dependent care benefits

• Box 11: Deferred compensation distributed from a taxable deferred compensation plan

• Box 12: Encompasses more than 30 sub-categories, including new codes for 2026 to provide information to the IRS if an amount is taxable income. The sub-categories include things such as: retirement plan contributions, employer contributions to health insurance and health savings account (HSA), taxable cost of group term life insurance, and substantiated employee business expense reimbursements.

• Box 13: Statutory employee, retirement plan, and third-party sick pay

• Box 14a: Other information, which could include things like health insurance premiums your employer deducted, education assistance payouts, or union dues

• Box 14b: Treasury Tipped Occupation Code, new for 2026  

• State and local tax information: If applicable, this section shows any state or local taxes withheld.

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.

Understanding the W-2 copies

Form W-2 comes in multiple copies, each going to a different recipient:

• Copy A: filed with the Social Security Administration, along with Form W-3, which totals the amounts across all of a business's W-2s

• Copy 1: filed with state, city, or local tax departments, if required

• Copy B: kept by the employee to file their federal tax return

• Copy C: kept by the employee for their records

• Copy 2: kept by the employee to file their state or local tax return, if applicable

• Copy D: kept by the employer for its records

Box d, the control number, is an optional field some payroll systems use to identify each W-2 internally. It's for the employer's recordkeeping and doesn't affect how the form is filed or used.

New for 2026: reporting tips and overtime

Two federal tax law changes affect W-2 reporting starting with 2026 wages, under Public Law 119-21. Form W-2 has new boxes and codes to support them.

Qualified tips deduction

For tax years 2025 through 2028, employees and self-employed workers in occupations that customarily and regularly received tips as of December 31, 2024, may be able to deduct up to $25,000 of qualified cash tips on their income tax return. Qualified tips are cash tips employees receive directly from customers or through a tip-sharing arrangement. Mandatory service charges don't count. Tips are still subject to federal income tax withholding, and to Social Security and Medicare tax once an employee's tips reach $20 or more in a month.

Employers report the total cash tips an employee reported to them using new box 12, code TP, and report the employee's Treasury Tipped Occupation Code in new box 14b.

Qualified overtime deduction

For tax years 2025 through 2028, employees and other workers may be able to deduct up to $12,500 ($25,000 if married filing jointly) of qualified overtime pay. Qualified overtime is the portion of pay that exceeds an employee's regular rate, such as the extra half in time-and-a-half compensation required under the Fair Labor Standards Act. Overtime pay itself is still subject to federal income tax withholding and Social Security and Medicare tax.

Employers report the total qualified overtime compensation paid during the year using new box 12, code TT.

Since eligibility for either deduction depends on an employee's specific tax situation, direct employees with questions to a qualified tax professional.

Common W-2 errors and how to fix them

Common errors on Form W-2 include misspelled names, incorrect Social Security numbers, and mistakes in wage or withholding amounts.

If you catch an error, issue a corrected W-2, using Form W-2c as soon as possible. Getting it right quickly protects your employee from filing delays and keeps your records up to date. It can also minimize the risk of identity theft tied to an incorrect Social Security number. The 2026 Form W-2c (Rev. 1-2026) reflects the same box 14a/14b split as the standard Form W-2.

Storing and accessing Form W-2

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.

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.

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 maintain compliance.

‍Retrieving past Form W-2s

‍If an employee needs a past W-2, you're required to provide one. Keep copies of all W-2s for at least four years. That's the minimum the IRS requires, and it's what makes a duplicate request straightforward to fulfill.

If you no longer have the form, employees can also request a transcript from the Social Security Administration (SSA) or check with a prior tax preparer.

‍Built for W-2 season

You built a business that pays people. That means W-2s are part of the job, every January.

SurePayroll generates W-2s at year end, ready to distribute to your employees on schedule, then files with the SSA on Form W-3.  

See how it works.  

If you're an existing SurePayroll customer, your employees' W-2s are in your dashboard under Tax Documents.