Form W-2

Form W-2, also known as the Wage and Tax Statement, is an IRS form used in the United States to report wages paid to employees and the taxes withheld from them. Employers are required to file Form W-2 with the Social Security Administration (SSA) and to provide copies to their employees by January 31st of the following year.

The W-2 reports an employee's annual wages, including salaries, tips, and other compensation. It also details the amount of federal income tax, Social Security tax, and Medicare tax withheld from the employee's paycheck. Additionally, it may include information about state and local income taxes withheld, as well as contributions to certain employee benefit plans, such as retirement plans or health savings accounts.

Employees use the information on their W-2 forms to file their individual income tax returns (Form 1040). The W-2 allows them to accurately report their income and claim any eligible deductions or credits. The IRS uses the information reported on the W-2 to verify the accuracy of tax returns and to ensure that individuals are paying the correct amount of taxes.

The form includes various boxes that categorize different types of income and withholdings. Key boxes include:

• Box 1: Total wages, tips, and other compensation.
• Boxes 3 and 5: Total Social Security wages and Medicare wages and tips, respectively.
• Boxes 2, 4, and 6: Federal income tax withheld, Social Security tax withheld, and Medicare tax withheld, respectively.
• Boxes 15-20: State and local tax information, if applicable.

Employers who fail to file Form W-2 correctly or on time may be subject to penalties. Employees who do not receive a W-2 from their employer should first contact the employer. If they are unable to obtain the form, they should contact the IRS for assistance.