What is a W-2 Form?

What is Form W-2?

The IRS requires employers to report wage and salary information for employees using Form W-2. Your W-2 also reports important details about the amount of federal, state and other taxes withheld from your paycheck as well as other employer fringe benefits like health insurance, adoption and dependent care assistance, health savings account contributions and more. As an employee, the information on your W-2 is extremely important when preparing your tax return.

In general, if you worked as an employee in a given year, you should receive a W-2 from your employer near the beginning of the following year.

When are W-2s due in 2024?

To ensure you have it in time, the IRS requires your employer to send you a W-2 no later than January 31st following the close of the calendar year. Generally, this means W-2s are mailed by January 31st, but not necessarily received by employees by this date.

As an employer, you must file W-2 forms with the Social Security Administration (SSA) and the IRS by January 31st but may file for a 30-day extension by submitting Form 8809, Application for Extension of Time to File Information Returns. You will need to indicate that at least one of the criteria for granting an extension applies.

Even if you request and receive an extension to file W-2s, you must still provide your employees copies of their W-2s by January 31st unless you also apply for an extension to provide W-2s to your employees after the due date.

You can request an extension of 15 days to provide W-2s to your employees unless you show a need for a 30-day extension by faxing a letter to the IRS.

What to do if you haven’t received your W-2

If you haven’t received your W-2 by early February, contact your employer. They might be able to provide you with an electronic version for use until you receive the paper version in the mail.

What to do if you find an error on your W-2

If you receive your W-2 and notice an error on your form, whether your name is misspelled, has an incorrect social security number, wrong dollar amount, or some other issue, let your employer know and ask for a corrected W-2.

Who receives a Form W-2?

You should only receive a W-2 if you are an employee.

You may receive multiple W-2s if you:

• changed jobs within the calendar year
• work more than one job where you’re considered an employee
• the company you worked for was acquired by another company

How do you use a W-2?

Form W-2 is completed by an employer and contains important information that you need to complete your tax return. It reports your total wages for the year and the amount of federal, state, and other taxes withheld from your paycheck. It may also contain information about:

• tips
• contributions to a 401(k)
• contributions to a health savings account
• premiums your employer pays for health coverage
• a variety of other information

What is the difference between a 1099 and W-2?

Both the Form W-2 and Form 1099 are meant to report income you earned from sources throughout the tax year. Where they differ are the circumstances under which you receive them and the taxes withheld from the income. When you work as an employee, your employer should send you a W-2. If you work as an independent contractor, the company will likely send you Form 1099-NEC rather than a W-2.

The difference between a 1099 and W-2 primarily comes down to the tax withholdings. Employers (W-2) withhold money from your pay and send it to the various tax agencies throughout the tax year on your behalf. As a self-employed person (1099), the business paying you doesn’t usually withhold money on your behalf. You are responsible for making your own payments for the taxes that you owe each year. Source