What is a W-2 form?

Also known as the Wage and Tax Statement, the W-2 form is a document that employers are required to send to each of their employees and to the Internal Revenue Service (IRS) in January. It details the employee's wages/salaries and tax deductions for the previous year. The W-2 is an important form for preparing federal and state tax returns.

W-2 forms are only given to employees. Independent contractors or the self-employed will receive an income statement on Form 1099 instead of a W-2. W-2s are also given by third-parties who may have provided sick pay to an employee in the tax year.

What is written on the W-2 form?

The W-2 form reports the employee's wages, tips, and salaries for the previous tax year (January 1 to December 31). It also reports the amount of federal, state, and other taxes (Medicare and Social Security) deducted from the paycheck by the employer.

If the employer provided dependent care benefits, distributions from non-qualified deferred compensation plans, or retirement plan contributions, those will also be included on the W-2. Identification information for the employee (name, address, and Social Security number) and the employer (name, address, EIN number, and state ID number) is also on the form.

How do I get a W-2 form?

Employers are required to send W-2s to employees on or before January 31 each year. Therefore, the quickest way to obtain the current year's W-2 form is to ask the employer. However, if necessary, a person can obtain the information they need from the Social Security Administration or the IRS.

From the Social Security Administration

Employers first submit W-2 forms to the Social Security Administration (SSA), which then processes them and sends the information to the IRS.  The SSA can provide copies or printouts of W-2 forms dating back to 1978.  The cost is free if the W-2 is needed for a Social-Security-related reason; otherwise, there is an $81 fee.

Note: State and local tax information will not be available if the tax return is e-filed.

From the IRS

If a person wants a copy of a W-2 that has already been submitted with a tax return, they can get it from the IRS — but only if it was sent with a paper tax return, not one filed electronically.

Another option is to order a Wage and Income Transcript from the IRS, which will show the income information the IRS received, not the actual W-2.

Can I get my W-2 online?

This question is often asked by employees. W-2s are not found online, although some companies have a system where employees can import their W-2 from the website. W-2s are only issued by the employer and should be saved.

Obligations of the employer

By law, employers are required to send a W-2 form to every employee who is paid salary, wages, or other forms of compensation on or before January 31. This does not include self-employed or contract workers, but it does apply to statutory employees (independent contractors who qualify for employee treatment).

Employers withhold the employee's portion and contribute the employer portion of FICA taxes from statutory employee wages. However, they are not required to withhold federal, state, or local income taxes.

Throughout the year, employers also use W-2 forms to report FICA taxes for their employees to the SSA.