The IRS W-2 form is a crucial document that reports an employee's annual wages and the amount of taxes withheld from their paycheck. This form serves as a key piece of information for the IRS to ensure that employees are paying the correct amount of taxes. It also helps individuals accurately file their annual tax returns, making it an indispensable tool for both employers and employees alike.
The complexities of tax preparation are familiar to anyone navigating the intricacies of financial obligations, especially when it comes to employment-related documentation. Central to this process is the Internal Revenue Service (IRS) W-2 form, a critical document that serves as an annual report detailing the amount of money an employee has earned and the taxes withheld from their paycheck throughout the fiscal year. Employers are tasked with the responsibility of generating and dispatching these forms to their workforce no later than January 31st each year, thus ensuring taxpayers have ample time to file their returns accurately and on schedule. This form not only facilitates the smooth filing of individual income tax returns but also plays a pivotal role in ensuring that Social Security and Medicare contributions are accurately reported. Understanding the layout and requirements of the W-2 form is paramount for both employers and employees, as errors or omissions can lead to processing delays, penalties, or audits. Therefore, grasping the major aspects of the W-2 form is not just about fulfilling a legal duty; it's about safeguarding one's financial integrity while ensuring compliance with federal regulations.
Attention:
You may file Forms W-2 and W-3 electronically on the SSA’s Employer W-2 Filing Instructions and Information web page, which is also accessible at www.socialsecurity.gov/employer. You can create fill-in versions of Forms W-2 and W-3 for filing with SSA. You may also print out copies for filing with state or local governments, distribution to your employees, and for your records.
The maximum amount of dependent care assistance benefits excludable from income may be increased for 2021. The American Rescue Plan Act of 2021 permits employers to increase the amount of dependent care benefits under their plans that can be excluded from an employee’s income from $5,000 ($2,500 for married filing separately) to up to $10,500 ($5,250 for married filing separately). See section C of Notice 2021-26 in
Internal Revenue Bulletin: 2021-21 | Internal Revenue Service (irs.gov) for more information.
Note: Copy A of this form is provided for informational purposes only. Copy A appears in red, similar to the official IRS form. The official printed version of this IRS form is scannable, but the online version of it, printed from this website, is not. Do not print and file Copy A downloaded from this website with the SSA; a penalty may be imposed for filing forms that can’t be scanned. See the penalties section in the current General Instructions for Forms W-2 and W-3, available at www.irs.gov/w2, for more information.
Please note that Copy B and other copies of this form, which appear in black, may be downloaded, filled in, and printed and used to satisfy the requirement to provide the information to the recipient.
To order official IRS information returns such as Forms W-2 and W-3, which include a scannable Copy A for filing, go to IRS’ Online Ordering for Information Returns and Employer Returns page, or visit www.irs.gov/orderforms and click on Employer and Information returns. We’ll mail you the scannable forms and any other products you order.
See IRS Publications 1141, 1167, and 1179 for more information about printing these tax forms.
22222
VOID
a
Employee’s social security number
For Official Use Only ▶
OMB No. 1545-0008
b Employer identification number (EIN)
1 Wages, tips, other compensation
2 Federal income tax withheld
c Employer’s name, address, and ZIP code
3
Social security wages
4 Social security tax withheld
5 Medicare wages and tips
6
Medicare tax withheld
7
Social security tips
8
Allocated tips
d Control number
9
10
Dependent care benefits
e Employee’s first name and initial
Last name
Suff.
11
Nonqualified plans
12a See instructions for box 12
C
o
d
e
13
Statutory
Retirement
Third-party
12b
employee
plan
sick pay
14 Other
12c
12d
f Employee’s address and ZIP code
15 State Employer’s state ID number
16 State wages, tips, etc.
17 State income tax
18 Local wages, tips, etc.
19 Local income tax
20 Locality name
Form W-2 Wage and Tax Statement
2022
Department of the Treasury—Internal Revenue Service
For Privacy Act and Paperwork Reduction
Copy A—For Social Security Administration. Send this entire page with
Act Notice, see the separate instructions.
Form W-3 to the Social Security Administration; photocopies are not acceptable.
Cat. No. 10134D
Do Not Cut, Fold, or Staple Forms on This Page
a Employee’s social security number
12a
Copy 1—For State, City, or Local Tax Department
Safe, accurate,
Visit the IRS website at
FAST! Use
www.irs.gov/efile
Copy B—To Be Filed With Employee’s FEDERAL Tax Return.
This information is being furnished to the Internal Revenue Service.
Notice to Employee
Do you have to file? Refer to the Form 1040 instructions to determine if you are required to file a tax return. Even if you don’t have to file a tax return, you may be eligible for a refund if box 2 shows an amount or if you are eligible for any credit.
Earned income credit (EIC). You may be able to take the EIC for 2022 if your adjusted gross income (AGI) is less than a certain amount. The amount of the credit is based on income and family size. Workers without children could qualify for a smaller credit. You and any qualifying children must have valid social security numbers (SSNs). You can’t take the EIC if your investment income is more than the specified amount for 2022 or if income is earned for services provided while you were an inmate at a penal institution. For 2022 income limits and more information, visit www.irs.gov/EITC. See also Pub. 596, Earned Income Credit. Any EIC that is more than your tax liability is refunded to you, but only if you file a tax return.
Employee’s social security number (SSN). For your protection, this form may show only the last four digits of your SSN. However, your employer has reported your complete SSN to the IRS and the Social Security Administration (SSA).
Clergy and religious workers. If you aren’t subject to social security and Medicare taxes, see Pub. 517, Social Security and Other Information for Members of the Clergy and Religious Workers.
Corrections. If your name, SSN, or address is incorrect, correct Copies B, C, and 2 and ask your employer to correct your employment record. Be sure to ask the employer to file Form W-2c, Corrected Wage and Tax Statement, with the SSA to correct any name, SSN, or money amount error reported to the SSA on Form W-2. Be sure to get your copies of Form W-2c from your employer for all corrections made so you may file them with your tax return. If your name and SSN are correct but aren’t the same as shown on your social security card, you should ask for a new card that displays your correct name at any SSA office or by calling 800-772-1213. You may also visit the SSA website at www.SSA.gov.
Cost of employer-sponsored health coverage (if such cost is provided by the employer). The reporting in box 12, using code DD, of the cost of employer-sponsored health coverage is for your information only. The amount reported with code DD is not taxable.
Credit for excess taxes. If you had more than one employer in 2022 and more than $9,114 in social security and/or Tier 1 railroad retirement (RRTA) taxes were withheld, you may be able to claim a credit for the excess against your federal income tax. See the Form 1040 instructions. If you had more than one railroad employer and more than $5,350.80 in Tier 2 RRTA tax was withheld, you may be able to claim a refund on Form 843. See the Instructions for Form 843.
(See also Instructions for Employee on the back of Copy C.)
aEmployee’s social security number
This information is being furnished to the Internal Revenue Service. If you
are required to file a tax return, a negligence penalty or other sanction
may be imposed on you if this income is taxable and you fail to report it.
Copy C—For EMPLOYEE’S RECORDS
(See Notice to Employee on the back of Copy B.)
Instructions for Employee
(See also Notice to Employee on the back of Copy B.)
Box 1. Enter this amount on the wages line of your tax return.
Box 2. Enter this amount on the federal income tax withheld line of your tax return.
Box 5. You may be required to report this amount on Form 8959, Additional Medicare Tax. See the Form 1040 instructions to determine if you are required to complete Form 8959.
Box 6. This amount includes the 1.45% Medicare Tax withheld on all Medicare wages and tips shown in box 5, as well as the 0.9% Additional Medicare Tax on any of those Medicare wages and tips above $200,000.
Box 8. This amount is not included in box 1, 3, 5, or 7. For information on how to report tips on your tax return, see the Form 1040 instructions.
You must file Form 4137, Social Security and Medicare Tax on Unreported Tip Income, with your income tax return to report at least the allocated tip amount unless you can prove with adequate records that you received a smaller amount. If you have records that show the actual amount of tips you received, report that amount even if it is more or less than the allocated tips. Use Form 4137 to figure the social security and Medicare tax owed on tips you didn’t report to your employer. Enter this amount on the wages line of your tax return. By filing Form 4137, your social security tips will be credited to your social security record (used to figure your benefits).
Box 10. This amount includes the total dependent care benefits that your employer paid to you or incurred on your behalf (including amounts from a section 125 (cafeteria) plan). Any amount over your employer’s plan limit is also included in box 1. See Form 2441.
Box 11. This amount is (a) reported in box 1 if it is a distribution made to you from a nonqualified deferred compensation or nongovernmental section 457(b) plan, or (b) included in box 3 and/or box 5 if it is a prior year deferral under a nonqualified or section 457(b) plan that became taxable for social security and Medicare taxes this year because there is no longer a substantial risk of forfeiture of your right to the deferred amount. This box shouldn’t be used if you had a deferral and a distribution in the same calendar year. If you made a deferral and
received a distribution in the same calendar year, and you are or will be age 62 by the end of the calendar year, your employer should file Form SSA-131, Employer Report of Special Wage Payments, with the Social Security Administration and give you a copy.
Box 12. The following list explains the codes shown in box 12. You may need this information to complete your tax return. Elective deferrals (codes D, E, F, and S) and designated Roth contributions (codes AA, BB, and EE) under all plans are generally limited to a total of $20,500 ($14,000 if you only have SIMPLE plans; $23,500 for section 403(b) plans if you qualify for the 15-year rule explained in Pub. 571). Deferrals under code G are limited to $20,500. Deferrals under code H are limited to $7,000.
However, if you were at least age 50 in 2022, your employer may have allowed an additional deferral of up to $6,500 ($3,000 for section 401(k)(11) and 408(p) SIMPLE plans). This additional deferral amount is not subject to the overall limit on elective deferrals. For code G, the limit on elective deferrals may be higher for the last 3 years before you reach retirement age. Contact your plan administrator for more information. Amounts in excess of the overall elective deferral limit must be included in income. See the Form 1040 instructions.
Note: If a year follows code D through H, S, Y, AA, BB, or EE, you made a make-up pension contribution for a prior year(s) when you were in military service. To figure whether you made excess deferrals, consider these amounts for the year shown, not the current year. If no year is shown, the contributions are for the current year.
A—Uncollected social security or RRTA tax on tips. Include this tax on Form 1040 or 1040-SR. See the Form 1040 instructions.
B—Uncollected Medicare tax on tips. Include this tax on Form 1040 or 1040-SR. See the Form 1040 instructions.
C—Taxable cost of group-term life insurance over $50,000 (included in boxes 1, 3 (up to the social security wage base), and 5)
D—Elective deferrals to a section 401(k) cash or deferred arrangement. Also includes deferrals under a SIMPLE retirement account that is part of a section 401(k) arrangement.
E—Elective deferrals under a section 403(b) salary reduction agreement
(continued on back of Copy 2)
Copy 2—To Be Filed With Employee’s State, City, or Local
Income Tax Return
Instructions for Employee (continued from back of
Copy C)
Box 12 (continued)
F—Elective deferrals under a section 408(k)(6) salary reduction SEP
G—Elective deferrals and employer contributions (including nonelective deferrals) to a section 457(b) deferred compensation plan
H—Elective deferrals to a section 501(c)(18)(D) tax-exempt organization plan. See the Form 1040 instructions for how to deduct.
J—Nontaxable sick pay (information only, not included in box 1, 3, or 5)
K—20% excise tax on excess golden parachute payments. See the Form 1040 instructions.
L—Substantiated employee business expense reimbursements (nontaxable)
M—Uncollected social security or RRTA tax on taxable cost of group- term life insurance over $50,000 (former employees only). See the Form 1040 instructions.
N—Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (former employees only). See the Form 1040 instructions.
P—Excludable moving expense reimbursements paid directly to a member of the U.S. Armed Forces (not included in box 1, 3, or 5)
Q—Nontaxable combat pay. See the Form 1040 instructions for details on reporting this amount.
R—Employer contributions to your Archer MSA. Report on Form 8853, Archer MSAs and Long-Term Care Insurance Contracts.
S—Employee salary reduction contributions under a section 408(p) SIMPLE plan (not included in box 1)
T—Adoption benefits (not included in box 1). Complete Form 8839, Qualified Adoption Expenses, to figure any taxable and nontaxable amounts.
V—Income from exercise of nonstatutory stock option(s) (included in boxes 1, 3 (up to the social security wage base), and 5). See Pub. 525, Taxable and Nontaxable Income, for reporting requirements.
W—Employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria) plan) to your health savings account. Report on Form 8889, Health Savings Accounts (HSAs).
Y—Deferrals under a section 409A nonqualified deferred compensation plan
Z—Income under a nonqualified deferred compensation plan that fails to satisfy section 409A. This amount is also included in box 1. It is subject to an additional 20% tax plus interest. See the Form 1040 instructions.
AA—Designated Roth contributions under a section 401(k) plan BB—Designated Roth contributions under a section 403(b) plan
DD—Cost of employer-sponsored health coverage. The amount reported with code DD is not taxable.
EE—Designated Roth contributions under a governmental section 457(b) plan. This amount does not apply to contributions under a tax- exempt organization section 457(b) plan.
FF—Permitted benefits under a qualified small employer health reimbursement arrangement
GG—Income from qualified equity grants under section 83(i)
HH—Aggregate deferrals under section 83(i) elections as of the close of the calendar year
Box 13. If the “Retirement plan” box is checked, special limits may apply to the amount of traditional IRA contributions you may deduct. See Pub. 590-A, Contributions to Individual Retirement Arrangements (IRAs).
Box 14. Employers may use this box to report information such as state disability insurance taxes withheld, union dues, uniform payments, health insurance premiums deducted, nontaxable income, educational assistance payments, or a member of the clergy’s parsonage allowance and utilities. Railroad employers use this box to report railroad retirement (RRTA) compensation, Tier 1 tax, Tier 2 tax, Medicare tax, and Additional Medicare Tax. Include tips reported by the employee to the employer in railroad retirement (RRTA) compensation.
Note: Keep Copy C of Form W-2 for at least 3 years after the due date for filing your income tax return. However, to help protect your social security benefits, keep Copy C until you begin receiving social security benefits, just in case there is a question about your work record and/or earnings in a particular year.
Copy D—For Employer
Act Notice, see separate instructions.
Once a year, employers are tasked with providing a W-2 form to each of their employees. This form reports the employee's annual wages and the amount of taxes withheld from their paycheck. It is a crucial document that allows employees to file their federal and state taxes accurately. Given its importance, it is essential to fill out the W-2 form correctly to ensure all reported information is accurate. The following steps are designed to guide employers through the process of completing the W-2 form for each of their employees.
Completing the W-2 form with care is essential for both employers and employees. It ensures that employees have the information they need to file their taxes and helps to avoid potential penalties for reporting inaccurate information. By following these steps, employers can fulfill their annual obligation efficiently and correctly.
What is a W-2 form?
The W-2 form, also known as the Wage and Tax Statement, is a document that employers are required to send to their employees and the Internal Revenue Service (IRS) at the end of each year. It reports the employee's annual wages and the amount of taxes withheld from their paycheck. The form is crucial for preparing your tax return.
Who needs to file a W-2 form?
Every employer engaged in a trade or business who pays remuneration, including non-cash payments of $600 or more for the year for services performed by an employee, must file a W-2 form for each employee from whom income, social security, or Medicare tax was withheld.
When is the deadline to file the W-2 form?
The W-2 form must be filed with the Social Security Administration (SSA) by January 31st following the end of the tax year. For example, for the 2022 tax year, the W-2 forms must be filed by January 31, 2023. This deadline also applies to providing employees with their copies of the W-2 form.
What information is included on the W-2 form?
The W-2 form includes several pieces of information: the employer's identification number (EIN) and address, the employee's social security number, name, and address, as well as detailed figures of the employee's income. This includes wages, tips, other compensation, federal income tax withheld, social security wages, social security tax withheld, Medicare wages, Medicare tax withheld, and more.
How can I obtain a copy of my W-2 form if I didn't receive one or if it got lost?
If you haven't received your W-2 by mid-February or if you have misplaced it, the first step is to contact your employer to request a reprint. If you're unable to obtain your W-2 from your employer, you can request a copy from the IRS by filing Form 4506-T, Request for Transcript of Tax Return. However, keep in mind that the IRS form will only be available after a certain period following the end of the tax year.
Can I file my taxes without a W-2 form?
If the tax-filing deadline is approaching and you still haven't received your W-2, you can file your taxes using Form 4852, Substitute for Form W-2, Wage and Tax Statement. You'll need to estimate your wage and tax withholding as accurately as possible. The IRS may need to contact your employer, which could delay your refund.
What should I do if I find an error on my W-2 form?
If you discover an error on your W-2 form, reach out to your employer immediately to request a corrected W-2, known as a W-2c form. It's essential to wait for the corrected W-2 before filing your tax return to avoid needing to amend your return later.
Filling out the IRS W-2 form is a critical task that employers must complete for their employees. However, several common mistakes can occur during this process, leading to potential issues with the IRS. Below are ten mistakes that people often make when completing the W-2 form:
Incorrectly reporting employee names and Social Security numbers is a frequent error. Both should exactly match the information on the employee's Social Security card.
Failing to report or inaccurately reporting wages, tips, and other compensation. All forms of compensation received by the employee need to be correctly documented.
Errors in the employee's address can lead to the W-2 form not reaching the employee, which can create delays in filing taxes.
Mismatching the tax withheld for federal, state, and local taxes. It’s essential to ensure that withholdings are correctly calculated and reported.
Omitting or incorrectly reporting contributions to retirement plans, which can affect the employee's taxable income and retirement contributions.
Not using the correct W-2 form version. The IRS updates forms regularly, and using an outdated version can lead to rejection or processing delays.
Forgetting to include decimal points and cents in amounts. Exact figures are needed to maintain accuracy in tax documents.
Choosing the wrong box for reporting specific income or deductions. Each box on the W-2 form has a specific purpose, and misplacing information can create confusion.
Failing to provide a W-2 form to each employee by the IRS deadline can lead to penalties. Timeliness is crucial in tax reporting.
Incorrect state code or state income tax information can lead to issues with state tax filings, potentially affecting the employee's tax obligations.
It’s important for those responsible for preparing W-2 forms to double-check their work, ensure all information is accurate, and stay updated on any IRS changes to avoid these common pitfalls.
When managing income tax returns, it's essential to be familiar with various forms and documents that often accompany the IRS W-2 form. These documents play a critical role in providing a comprehensive financial overview for individuals, making the tax filing process more accurate and streamlined. Below is a description of four such documents.
Understanding these forms and how they interact with the IRS W-2 form can significantly affect the accuracy and effectiveness of the tax filing process. Each document serves a unique purpose, ensuring that individuals and businesses can report their financial activities comprehensively to the IRS.
Similar to the IRS W-2 form, the IRS 1099-MISC form is a document that reports income. However, while the W-2 reports wages, tips, and other compensation paid to an employee, the 1099-MISC is used to report payments made to independent contractors who have earned more than $600 during the tax year. This distinction is pivotal for tax purposes, as it affects the withholding taxes and the tax forms required for submission by the payee.
The IRS 1099-INT form shares its purpose with the W-2 form in that both are used for reporting income. The 1099-INT form, however, is specifically designed for reporting interest income earned from banks, financial institutions, or similar entities throughout the tax year. This particular form is critical for individuals who have investments or savings in interest-bearing accounts, as it affects their taxable income and potential tax liabilities.
Another document similar to the IRS W-2 form is the IRS W-4 form. The W-4, often completed by employees at the start of a new job, directs employers on how much federal income tax to withhold from their paychecks. Unlike the W-2, which reports earnings and taxes withheld for a given tax year, the W-4 is used to anticipate and adjust withholding to avoid owing taxes or receiving a large refund at the end of the year.
The IRS W-9 form is akin to the W-2 form in its role in the reporting process, specifically for gathering taxpayer identification numbers. Businesses use the W-9 to collect information from individuals they hire as freelancers or contractors, similar to how an employer uses a W-2 to report an employee's income to the IRS. The information collected on a W-9 helps organizations prepare 1099 forms, which report the income paid to non-employees.
Finally, the Schedule C form is indirectly related to the W-2 form as part of the broader tax reporting landscape. Used by sole proprietors and single-member LLCs, the Schedule C form reports the profit or loss from a business. Whereas the W-2 form captures employee income, Schedule C pertains to business owners, detailing their business' earnings and expenses. This form plays a critical role for entrepreneurs in determining their taxable net business income.
When filling out the IRS W-2 form, paying attention to detail is crucial. The information provided must be accurate and clear to ensure proper processing. Here are things that should and shouldn't be done.
Do's:
Don'ts:
Understanding the IRS W-2 form is essential for both employers and employees alike. However, several misconceptions can lead to confusion about how this form works and its requirements. Here, we clarify some of the most common misunderstandings.
Only Full-time Employees Get a W-2: Many people believe that only full-time employees are eligible to receive a W-2 form. However, the truth is that employers must issue a W-2 form to every employee from whom Income, Social Security, or Medicare tax was withheld. This includes part-time and temporary employees as well.
Independent Contractors Receive W-2s: Another common misconception is that independent contractors also receive W-2 forms. In reality, independent contractors should receive a 1099 form, not a W-2. The W-2 form is specifically for employees, highlighting the form's focus on the employee-employer relationship.
You Don’t Have to Report W-2 Income if It’s Under a Certain Amount: Some individuals incorrectly believe that if their income from a single employer is below a certain threshold, it doesn't need to be reported. The IRS, however, requires all income to be reported, regardless of amount. All W-2 forms, regardless of the income level, should be included in your tax return.
W-2 Forms are Only Important for Tax Filing: While it's true that W-2 forms are integral to the tax filing process, they serve other important purposes as well. For instance, they can be used to verify employment or income when applying for loans or government assistance. This emphasizes the form's broader utility beyond just tax season.
Employers Can Issue W-2 Forms Electronically Without Consent: In the digital age, electronic delivery of documents has become commonplace. However, employers are required to obtain their employees' consent before sending W-2 forms electronically instead of in paper form. This consent ensures that all employees have reliable, convenient access to their W-2 information.
The Deadline for Employers to Issue W-2s is April 15th: Many confuse the deadline for employers to issue W-2 forms with the tax filing deadline for individuals, which is typically April 15th. Employers are actually required to send out W-2 forms to their employees by January 31st, allowing sufficient time for taxpayers to prepare and file their returns accurately and on time.
The IRS W-2 form, crucial for both employers and employees during tax season, serves as a statement of an employee's annual wages and the amount of taxes withheld from their paycheck. Here are six essential takeaways regarding the completion and utilization of this form:
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