Form W-2: Wage and Tax Statement

What is Form W-2?

Form W-2 (Wage and Tax Statement) is the annual tax document employers must provide to each employee and file with the Social Security Administration (SSA). It reports an employee’s wages for the prior tax year and the amounts withheld for federal income tax, Social Security, Medicare, and state/local taxes. Employers must furnish W-2s to employees and file them with the SSA (typically with a Form W-3 summary) by January 31 following the tax year.

Key takeaways

• W-2s summarize wages paid and taxes withheld for the prior year.
• Employers issue a W-2 to every employee they paid wages or compensation.
• Employees use W-2 information to complete Form 1040; the IRS and SSA use W-2s to verify income and Social Security credits.

Who receives and who files a W-2?

• Employers must send a W-2 to each person they treated as an employee and paid wages, salary, tips, bonuses, or other compensation.
• Independent contractors receive Form 1099-NEC (not a W-2).
• Employers file W-2s (and Form W-3) with the SSA by the end of January so employees can meet tax-filing deadlines.

What information is on a W-2?

Common elements included on every W-2:
* Employer name, address, and Employer Identification Number (EIN).
* Employee name, address, and Social Security Number (SSN).
* Total wages, tips, and other compensation for the year.
* Federal income tax withheld.
* Social Security wages and Social Security tax withheld.
* Medicare wages and Medicare tax withheld.
* State and local wages and withholdings (if applicable).
* Miscellaneous items such as tips, dependent care benefits, retirement plan contributions, and other code-based entries (Box 12) or employer-specific notes (Box 14).

How to read the main boxes

• Boxes A–F: Identifying information (employee/employer name, addresses, SSN, EIN).
• Box 1: Taxable wages, tips, and other compensation (used on Form 1040).
• Box 2: Federal income tax withheld.
• Box 3: Social Security wages (amount subject to Social Security tax).
• Box 4: Social Security tax withheld.
• Box 5: Medicare wages.
• Box 6: Medicare tax withheld.
• Boxes 7–8: Reported tips and allocated tips (if applicable).
• Box 9: No longer used.
• Box 10: Dependent care benefits.
• Box 11: Nonqualified deferred compensation.
• Box 12: Miscellaneous items identified by letter codes (e.g., 401(k) deferrals, adoption benefits).
• Box 13: Checkboxes for statutory reporting (e.g., retirement plan participation, sick pay).
• Box 14: Employer-specific information (e.g., state disability, union dues).
• Boxes 15–20: State and local employer IDs, wages subject to state/local tax, and amounts withheld.

Related forms and how they differ

• Form W-4 — Completed by employees to tell employers how much federal income tax to withhold each pay period. Not filed with the IRS by employees.
• Form 1099-NEC/1099-MISC — Sent to independent contractors and other nonemployees when payments are not subject to withholding.
• Form W-2G — Reports certain gambling winnings.
• Forms 1098-E / 1098-T — Report student loan interest and tuition payments for education-related tax items.

Common questions

Q: How do I know if enough tax has been withheld?
A: Reconcile total tax withheld (from Box 2 and state boxes) with your tax liability when you file Form 1040. If withholdings exceed your tax owed, you’ll receive a refund; if they’re less, you’ll owe the difference. Use Form W-4 to adjust withholding during the year.

Q: Do you need to earn a minimum amount to get a W-2?
A: Employers should provide a W-2 to any employee they paid wages or compensation during the year, regardless of amount. (The $600 reporting threshold commonly applies to certain 1099 filings for nonemployee compensation, not to W-2s.)

Q: What’s the difference between a W-2 and a W-4?
A: W-4 is completed by the employee to set withholding preferences; W-2 is completed by the employer after year-end summarizing actual wages and taxes withheld.

Bottom line

Form W-2 is the primary employer-issued statement of wages and tax withholdings for the year. Employees use it to prepare tax returns and the SSA uses it to record earnings for Social Security benefits. Keep your W-2s safe and compare them to your tax return each year to ensure accuracy.