Form W-2 is a tax document that US employers must provide to employees, detailing their annual wages and the amount of taxes withheld. It is used by employees to file their federal and state income tax returns.
What are the different types of IRS Form W-2?
The IRS Form W-2, also known as a Wage and Tax Statement, is provided by employers to employees to report wages and taxes withheld. While Form W-2 is the standard for most workers, the Internal Revenue Service (IRS) also uses variations like Form W-2G and Form W-2C for a few specific tax situations.
Form W-2G
Form W-2G is used to report gambling winnings and any taxes withheld on those winnings. The IRS requires this form when gambling payouts meet specific thresholds or are subject to withholding.
Form W-2C
Form W-2C, also known as a Corrected Wage and Tax Statement, is issued if there are errors on an original Form W-2. This form corrects mistakes like incorrect wages or tax withholdings, ensuring the employee's tax return accurately reflects their earnings and withholdings.
What is Form W-2 used for?
Form W-2 is a tax form used by employees to report their wages and taxes withheld for the year and for filing federal and state tax returns. The form, provided to them by their employer, helps employees accurately report their income and taxes paid to the IRS and state tax authorities.
What information is included on a Form W-2?
A Form W-2 includes all the information an employee needs to fill out and file their federal, state, and local tax returns. This includes:
Employer information:
- Employer Identification Number
- Name
- Business address
- State ID number
Employee information:
- Social Security Number (SSN)
- Name
- Home address
- Wages
The form contains more information, which we’ll cover in more detail below, in the section on how to fill out a Form W-2.
Who needs a Form W-2?
All taxpayers who receive wages from their employers need a Form W-2 for tax purposes. The form summarizes their income and tax withholdings, allowing them to file their individual tax returns accurately.
How to fill out Form W-2
Here’s what goes in each part of a W-2 form:
- Box 1: How much the employee was paid in wages, tips, or other compensation
- Box 2: How much federal income tax you withheld from the employee’s pay
- Box 3: The employee’s Social Security Wages, or the part of their pay that’s subject to Social Security tax
- Box 4: How much Social Security tax was withheld from the employee's pay
- Box 5: How much of the employee’s pay is subject to Medicare tax
- Box 6: How much Medicare tax was withheld from the employee’s pay
- Box 7: How much tip income was reported that is subject to Social Security tax. This income should also be included in the total in Box 1.
- Box 8: How much in allocated tips you allocated to the employee. This income should not be included in Box 1.
- Box 9: This box was previously used to report advances on Earned Income Credit, but starting in 2010, it should be left empty
- Box 10: How much in dependent care benefits you paid to the employee or incurred on their behalf
- Box 11: How much deferred compensation the employee received from a non-qualified plan
- Box 12: Details about other types of compensation the employee received, such as employer contributions made to a 401(k) plan or health savings account
- Box 13: Shows whether the employee’s earnings were subject to Social Security and Medicare taxes, but not other tax withholding; whether they participated in certain types of retirement plans, like a 401(k) or 403(b); or whether they received sick pay through a third-party source, like their health insurance policy
- Box 14: You can report tax information in this box that doesn’t fit in other areas on the form; for example, withholdings on state disability insurance taxes or union dues
- Box 15: Employer’s state ID number
- Boxes 16-20: How much of the employee’s pay is subject to local and/or state income tax and how much state and/or local income tax was withheld
- Boxes A through F: Personal information, such as names and addresses for both the employee and the employer, the employer’s Tax Identification Number, and the employee’s Social Security number.
How to file Form W-2
Employers are responsible for filing Form W-2 with the IRS and distributing copies to their employees. The form has multiple parts with different copies that should be filed with the correct agencies:
- Copy A goes to the Social Security Administration (SSA)
- Copy 1 goes to the city, state, or local governing body
- Copy B should be filed with the employee’s federal tax return
- Copy C goes to the employee for their records
- Copy 2 is a duplicate copy for the city, state, or local governing body
- Copy D is for the employer’s records
Filing Form W-2 online
Electronic filing online is fast, free, and easy—employers only need to register with the SSA and they’re ready to start filing W-2s. Any employer filing more than 10 forms is required to file online as of 2022.
Filing Form W-2 by mail
To file W-2 forms by mail, follow the instructions on the SSA website. Where you mail them depends on which type of W-2 you need to file and whether you’re sending them via the USPS or a private mail carrier.
Form W-2 filing deadline
Form W-2 must be filed with the Social Security Administration and provided to employees by January 31st following the end of each tax year. The form covers the wages and taxes from the previous calendar year.
What happens if you miss the deadline to file Form W-2?
Missing the January 31st deadline to file Form W-2 can result in penalties from the IRS. The amount of the penalty increases based on how late the form is filed, with larger fines for extended delays. Employers should file as soon as possible after realizing they missed the deadline to minimize penalties.
Frequently asked questions about Form W-2
Still have questions about Form W-2? Learn more in the FAQs below.
What do you do if you find an error on a Form W-2?
If you make an error on a Form W-2, you’ll need to issue a corrected Form W-2C, which rectifies any mistakes in wages, taxes withheld, or other important details.
What should an employee do if they don’t receive their W-2?
If you’re an employee and you don’t receive a copy of your W-2 by mid-February, contact your employer to request one. If you still don't receive it, you can also contact the IRS to assist in obtaining your W-2.
What’s the difference between a Form W-2 and a Form 1099?
A Form W-2 is used for employees to report wages and taxes withheld, while a Form 1099 is used for independent contractors. The key difference lies in tax filing: W-2 employees have taxes withheld by their employer, while 1099 workers are responsible for calculating and paying their own taxes.
What’s the difference between a Form W-2 and a Form W-4?
A Form W-2 reports an employee’s annual wages and tax withholdings. A Form W-4 is filled out by employees to inform their employer how much federal income tax to withhold from their paycheck throughout the year.
Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.