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Updated July 15, 2024 Fact checked by Fact checked by Suzanne KvilhaugSuzanne is a content marketer, writer, and fact-checker. She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies for financial brands.
Part of the Series Federal Tax Forms1099 Forms INT–OID
1099 Forms PATR–SA
Form W-2, also known as the Wage and Tax Statement, is a document an employer sends to each employee and the Internal Revenue Service (IRS) and shows income earned from an employer and the amount of taxes withheld from an employee's paycheck so taxpayers can file federal and state taxes. A W-2 employee is someone whose employer deducts taxes from their paychecks and submits this information to the government.
An employer must send out a W-2 form to every employee to whom they paid a salary, wage, or other form of compensation. This does not include contracted or self-employed workers, who file taxes with different forms. The employer must send the employee the W-2 form on or before January 31 each year, so that the employee has time to file income taxes before the deadline, commonly April 15.
Employers use W-2 forms to report the Federal Insurance Contributions Act (FICA) taxes withheld. By the end of January, employers must file, for the previous year, Form W-2, along with Form W-3, for each employee with the Social Security Administration (SSA). The SSA uses the information on these forms to calculate the Social Security benefits each worker is entitled to.
Tax documents reflect earnings and deductions for the previous year. A W-2 form in January 2024 shows income earned in 2023.
Employees receive a W-2 for their income taxes, sent annually by their employer. Taxpayers will receive multiple W-2s if they work for more than one employer. The IRS also gets a copy. Taxpayers input the data found on the W-2 into a Form 1040 individual tax return, either by hand or electronically. Regardless of the employer or company, every W-2 includes the same information:
W-2 forms include numbered and lettered boxes that an employer must fill out to reflect how much you earned and taxes withheld. Employees will receive separate W-2s for federal, state, and local taxes.
Form W-4 is completed by employees when they start working for a company. The employer uses the information to determine how much tax to withhold from paychecks. The information on Form W-4 (or sometimes Form W-9) helps track payroll, tax withholding, employer-provided benefits, and pre-tax contributions to things like a 401(k) retirement plan.
When taxes are not withheld, an employee will receive a 1099 form showing the earnings and any deductions made. Individuals must report this income on their annual tax filing forms. This usually arrives by the end of January of the following year.
Form W-2G is a tax form that a gaming facility such as a casino may send if a taxpayer received winnings from gambling in the prior year. Students receive a 1098-E statement when they've paid interest on a federal student loan. Students also receive a 1098-T statement reporting college tuition expenses that might entitle students to tax deductions or credits.
When the employee files taxes, the amount of tax withheld according to the W-2 form is deducted from their gross tax obligation. If more tax was withheld than owed, a refund will be issued. The IRS also uses Form W-2 to track an employee’s income and tax liability. If the income reported on an employee’s taxes doesn’t match the income reported on the Form W-2, the IRS may audit the taxpayer. Taxpayers must report all salary, wage, and tip income even if that income is not reported on a W-2.
Individuals commonly receive a W-2 from an employer if they earn at least $600. Contracted individuals or independent contractors are not considered employees and receive a 1099 instead of a W-2.
A W-4 provides an employer with an employee's tax ID number (usually SSN), marital status, number of allowances and dependents, and how much tax to withhold with each paycheck. The W-4 is filled out when an employee is hired or if any changes must be made to filing status or withholding. The W-2 is filled out by employers at the end of the tax year and sent to employees to input on their tax returns.
Form W-2 is an IRS form that employers must send to an employee and the IRS every year. The form reports an employee's annual wages and the taxes withheld. Employees also use the form to file their taxes every year.
