Form W-2 in plain English
Form W-2, Wage and Tax Statement, reports annual employee compensation and taxes withheld. An employer generally sends a copy to the employee and files the form with the Social Security Administration, which shares federal tax information with the IRS.
Employees use W-2 information to prepare federal, state, and local returns. The form is an information statement, not a tax bill or a refund calculation.
One worker can receive multiple W-2s from multiple employers or from one employer after a payroll entity or state assignment changes.
When a W-2 is due
Employers generally must furnish Form W-2 to employees by January 31 and file Forms W-2 with Form W-3 by the same date, adjusted under the applicable weekend and holiday rules.
An electronic form can satisfy delivery rules when consent and access requirements are met. Employees should download and retain it before losing access to an employer portal.
The filing deadline can have specific extensions or disaster relief, but an employee should not assume a missing form is normal without contacting the employer.
Identity and employer boxes
Boxes a through f identify the employee, Social Security number, employer identification number, employer name and address, and control number where used.
Compare the Social Security number and name with the Social Security card. A mismatch can affect wage records and future benefits. An address difference alone may not change wage reporting, but the employee should still update payroll records.
The employer identification number identifies the filing employer; it is not the employee's Social Security number.
Boxes 1 through 6
Box 1 reports wages, tips, and other compensation subject to federal income tax. It may differ from gross pay because pretax retirement, health, and other benefit rules affect taxable wages.
Box 2 reports federal income tax withheld. It is a prepayment credited on the return, not the employee's final federal tax.
Box 3 reports Social Security wages up to the applicable annual wage base, and Box 4 reports Social Security tax withheld.
Box 5 reports Medicare wages and tips. It does not use the Social Security wage-base cap, so it can exceed Box 3. Box 6 reports Medicare tax withheld, including applicable Additional Medicare Tax withholding.
Boxes 7 through 11
Box 7 reports Social Security tips, while Box 8 can report allocated tips. Employees in tipped work should reconcile these figures with tip records and reporting obligations.
Box 10 reports dependent-care benefits, including amounts that may exceed an excludable limit. Box 11 reports certain distributions from nonqualified plans.
Boxes can be blank when they do not apply. A blank box is not automatically an error.
Box 12 codes
Box 12 pairs letters with amounts for items such as elective retirement-plan deferrals, designated Roth contributions, employer-sponsored health-coverage cost, and other benefits or compensation.
The letter is essential. Two identical dollar amounts with different codes can have different meanings and tax treatment.
Some Box 12 amounts are informational; others connect to limits or forms. Use the current Form W-2 and Form 1040 instructions instead of guessing from the description printed by tax software.
Box 13 checkboxes
Box 13 may indicate statutory employee, retirement plan, or third-party sick pay.
The retirement-plan checkbox can affect whether a traditional IRA contribution is deductible. It does not mean the employee necessarily made a contribution, and it does not by itself show the contribution amount.
Statutory-employee treatment can change how expenses and income are reported. Third-party sick pay identifies certain payments made by an insurer or other third party.
Box 14 and state information
Box 14 is used for items the employer wants or is required to report, such as certain state taxes, benefit amounts, or payroll information. Descriptions are not standardized nationally.
Boxes 15 through 17 report state and employer identifiers, state wages, and state income tax withheld. Boxes 18 through 20 serve a similar purpose for local wages, tax, and locality names.
Employees who lived or worked in multiple jurisdictions may have several state or local lines and may need more than one copy or page.
Why Box 1 differs from a final pay stub
Year-to-date gross pay on a pay statement can include amounts excluded from Box 1 or omit adjustments processed after the last check. Pretax 401(k) deferrals generally reduce Box 1 but remain included in Social Security and Medicare wages, while some health benefits can reduce all three.
Imputed income, taxable fringe benefits, group-term life insurance, stock compensation, and corrections can also produce differences.
Reconcile the categories rather than expecting every headline wage figure to match.
W-2 versus Form 1099
Employees generally receive Form W-2, while independent contractors commonly receive Form 1099-NEC for qualifying nonemployee compensation. The label used by the business does not determine worker status; the facts and applicable control tests do.
Employees generally have income and payroll taxes withheld through payroll. Independent contractors usually manage estimated tax and self-employment tax themselves.
A worker who believes classification is wrong should review IRS guidance rather than editing a form or reporting the payment under a preferred category.
If the W-2 does not arrive
If Form W-2 has not arrived by the end of January, first check the payroll portal and contact the employer. Confirm the mailing and email addresses.
If it is still missing by the end of February, the IRS says to call for assistance with the employer's name, address, phone number, dates worked, and wage and withholding estimates available.
The taxpayer may need to file Form 4852, Substitute for Form W-2, using the best available pay-statement records. A missing form does not automatically extend the return due date.
If the W-2 is wrong
Ask the employer to correct the information. The employer generally uses Form W-2c and the related transmittal to correct previously reported data.
Do not change a W-2 manually. If the corrected form will not arrive in time, follow IRS instructions for Form 4852 and retain documentation of efforts to obtain the correction.
If a return was filed with incorrect information and the corrected form changes it, an amended return may be required. Wait for accurate wage and withholding data when practical.
Prevent duplicate or omitted wages
Enter every W-2 once, including forms from a short job and corrected forms. A W-2c usually changes specified boxes; it is not always an additional set of wages to add to the original.
Compare the return's total wages and withholding with all final forms. Duplicate withholding can create an improper refund that the IRS later reverses, while omitted wages can create additional tax, penalties, and interest.
An IRS wage and income transcript can help identify information returns reported federally, but it may not contain complete state data and is not a substitute for checking the original form.
Recordkeeping and security
Retain the W-2 with the filed return and supporting payroll records for the applicable recordkeeping period. Longer retention may be sensible when a form affects retirement-plan basis, state matters, or Social Security records.
W-2s contain identity data useful to criminals. Download them on a trusted device, use secure storage, and send them only through protected tax-preparation channels.
Review the Social Security earnings record periodically. Correcting an employer form promptly is easier than reconstructing wages many years later.
A W-2 review checklist
Before filing:
- verify name and Social Security number;
- reconcile employer identity and every job worked;
- compare Boxes 1, 3, and 5 with payroll-benefit records;
- verify federal, state, and local withholding;
- read every Box 12 code and Box 13 checkbox;
- include all pages and jurisdictions;
- resolve errors with the employer; and
- retain the final W-2 or W-2c with the return.
The form is compact, but each box belongs to a different part of the tax and payroll system. Accurate filing begins by treating it as a reconciliation document, not a single wage number.