W-2 Form

What is a W-2 Form?

 

A W-2 Form is a document used in the U.S. to report an employee’s annual income and the taxes deducted from their paycheck stubs. This form is officially known as the “Wage and Tax Statement” and is provided by employees to their employers at the end of each calendar year.

 

What is the Purpose of a W-2 Form?

 

The Wage and Tax Statement, or Form W-2, details an employee’s yearly compensation. You must deliver a copy to the Social Security Administration (SSA) and your staff. Other details like deferred compensation, dependent care benefits, health savings account donations, and tip income may also be included.

 

You must complete a Form W-2 if you paid an employee during the year. Whether the employee works for one day or a year, you must still give them a W-2 form. Any employees you pay a salary, hourly wages, or other types of compensation to are legally required to receive W-2 documents.

 

How do you fill out a W-2 Form for an employee?

 

As the official copies of W-2 forms state, you should print Form W-2. The IRS or a nearby office business sells the paperwork. You can read an example Form W-2 on the IRS website, but you cannot print it.

 

If you utilize payroll software, you could ask your payroll provider for an electronic W-2 form to provide to employees.

 

When completing Form W-2, ensure each employee’s name, address, and Social Security number are correct. Also, ensure your company’s EIN, address, and character are accurate.

 

Make sure that all monetary amounts on Form W-2 are reported accurately. Use a decimal point (for example, 1000.00) to separate dollars from cents.

 

Before mailing each Form W-2 to the SSA and your employees, thoroughly check it for inaccuracies.

 

You can complete Form W-2 more efficiently by using online payroll tax software.

 

Also, See: W-4 Form