A W-2 form, officially called the "Wage and Tax Statement," is a United States federal tax document that employers must provide to each employee annually. It reports the employee’s total wages earned during the previous calendar year and the amount of federal, state, and other taxes withheld from their paycheck
. Employers also send copies of the W-2 to the Social Security Administration (SSA) and the IRS. The SSA uses the information to record earnings for Social Security and Medicare benefits, while the IRS uses it to verify income and tax withholding reported on tax returns
. Key points about the W-2 form include:
- It is issued to employees, not to independent contractors (who receive Form 1099 instead)
- Employers must provide the W-2 to employees by January 31 each year to allow time for tax filing before the April 15 deadline
- The form details wages, withheld taxes, Social Security and Medicare contributions, and employer-provided benefits such as health insurance and retirement plan contributions
- Employees use the W-2 to file their federal and state income tax returns accurately
In summary, the W-2 form is essential for employees to report their income and tax withholdings to the IRS and state tax authorities, ensuring proper tax filing and Social Security crediting
