Browsing: W-2 Form
The W-2 Form, officially known as the Wage and Tax Statement, is a document that employers in the United States must provide to their employees and file with the Social Security Administration (SSA). It reports an employee’s annual wages, tips, and other compensation, along with the amounts withheld for federal income tax, Social Security tax, and Medicare tax. Employers must send out W-2 forms by January 31 of the following year to ensure employees have the necessary information for filing their tax returns. The IRS also receives a copy to track tax obligations and verify reported income.
Employees use the W-2 Form when filing their individual tax returns, as it provides a breakdown of their earnings and tax withholdings. If an employee has worked for multiple employers, they will receive separate W-2 forms from each one. The SSA uses the information on W-2 forms to calculate Social Security benefits for workers. Additionally, discrepancies between an individual’s tax return and their W-2 can trigger IRS audits or adjustments. The form plays a crucial role in ensuring accurate tax reporting and compliance with federal tax laws.