W-2 Form

Demystifying the W-2 Form: Your Comprehensive Guide

Understanding the W-2 Form

Commonly referred to as the Wage and Tax Statement, the W-2 form is a crucial document mandated by employers to be sent to each employee and the Internal Revenue Service (IRS) in January. This form meticulously details an employee’s wages, salary, and tax withholding information from the previous year. It serves as a cornerstone for the preparation of federal and state tax returns.

Recipient Eligibility: Employees Only

The W-2 form is exclusively designated for employees. Independent contractors and those who are self-employed receive their earnings statement on a Form 1099, distinct from the W-2. Third parties that dispense sick pay to employees within the tax year also furnish W-2 forms.

Contents of the W-2 Form

Essentially encapsulating an employee’s financial snapshot for the preceding tax year (Jan. 1 to Dec. 31), the W-2 form encompasses wages, tips, and salary information. Additionally, it itemizes federal, state, and other tax withholdings (including Medicare and Social Security) executed by the employer. Contributions to dependent care benefits, nonqualified deferred compensation plans, and retirement plans are also detailed on the W-2. Crucial identifying information for both employee and employer—such as name, address, social security number, and relevant employer identifiers—are prominently featured.

Acquiring W-2 Forms: A Concise Overview

Employers are obligated to dispatch W-2 forms to employees by Jan. 31 each year. The most expeditious method for obtaining the current year’s W-2 form is through direct communication with the employer. Alternately, individuals seeking this information can approach the Social Security Administration (SSA) or the IRS if required.

Retrieval from the Social Security Administration

The initial submission of W-2 forms by employers is directed to the Social Security Administration (SSA). The SSA is equipped to provide copies or printouts of W-2 forms spanning from 1978 to the present. While the service is free for Social-Security-related purposes, a fee of $81 is applicable for other instances. It’s important to note that state and local tax information is unavailable for e-filed tax returns.

Retrieval from the IRS

For those seeking a copy of a W-2 submitted with a tax return, the IRS is a viable source. However, this option is applicable only if the tax return was submitted on paper and not electronically. Another avenue is to procure a wage and income transcript from the IRS, offering a comprehensive overview of income information received by the IRS, albeit not the actual W-2.

Online Accessibility of W-2 Forms

Contrary to common misconceptions, W-2s are not inherently available online. Although certain companies may facilitate an import feature for employees to acquire their W-2 from a website, the official distribution of W-2s is the sole prerogative of employers, and individuals are advised to retain their copies.

Employer Responsibilities

In adherence to legal mandates, employers are compelled to furnish W-2 forms to every employee who received a salary, wage, or other forms of compensation. This obligation excludes self-employed or contracted workers but encompasses statutory employees—those independent contractors qualifying for employee treatment. Employers utilize W-2 forms throughout the year to report FICA taxes for employees to the SSA.