A W-2 form is a tax document that employers are required to send to each employee and the IRS at the end of each year. It reports the employee's annual wages, the amount of taxes withheld from their paycheck (federal, state, Social Security, and Medicare), and other compensation. Employees use the W-2 to file their annual tax returns.
W-2 Form
Definition
A W-2 form is a tax document that employers are required to send to each employee and the IRS at the end of each year. It reports the employee's annual wages, the amount of taxes withheld from their paycheck (federal, state, Social Security, and Medicare), and other compensation. Employees use the W-2 to file their annual tax returns.
Example
In January, your employer sends you a W-2 showing you earned $65,000 in wages, with $9,750 withheld for federal taxes, $4,973 for Social Security, and $943 for Medicare.
Key Points
- 1Issued by employers to employees annually by January 31
- 2Reports wages and taxes withheld
- 3Required for filing your tax return
- 4Multiple W-2s if you had multiple employers
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