W-2

W-2: The W-2 form, officially known as the “Wage and Tax Statement,” is a document that employers in the United States are required to complete for each employee. It reports the employee’s annual wages and the amount of taxes withheld from their payCheck.

Each W-2 form includes information such as:

• Employee’s total earnings
• Federal Income Tax withheld
• Social Security wages and taxes
• Medicare wages and taxes
• State income tax withheld (if applicable)

Employers must send out W-2 forms to employees by January 31st of the following year, and employees use this information to complete their annual tax Returns.

Examples and Cases:

1. If an employee earned $50,000 in 2023 and had $5,000 in federal taxes withheld, their W-2 form would report these figures accordingly.

2. A part-time employee may receive a W-2 even if they worked only a few hours each week, as long as they were classified as an employee rather than an Independent Contractor.

3. If an employee worked for two different companies during the year, they would receive separate W-2 forms from each employer, reflecting the income and taxes withheld for their respective periods of employment.