What is a W-2 Form? A complete guide

Form W-2 is an annual tax document that reports your wages and tax withholdings from an employer. Tax season can feel overwhelming when you're staring at unfamiliar forms, but understanding your W-2 is the first step to filing your taxes correctly.

Form W-2, also known as the Wage and Tax Statement, is a document employers are required by U.S. law to send to each employee and the US Internal Revenue Service (IRS) at the end of the calendar year. Specifically, the IRS requires this form for any employee who receives remuneration of $600 or more during the year. A W-2 reports employees' annual wages and the amount of federal, state, and other taxes withheld from the employee's paycheck. W-2 employees use this form to file their U.S. federal and state taxes.

This guide walks you through everything you need to know about W-2 forms: who gets them, how to read them, when to expect them, and what to do if something goes wrong. Whether you're filing taxes for the first time or just need a refresher, we'll help you navigate this essential document with confidence.

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Who receives a W-2 form

If you're an employee who receives a paycheck with taxes withheld, you'll get a W-2 form. In fact, the IRS requires a W-2 for any employee from whom taxes would have been withheld, even if they had claimed exemption from withholding on their Form W-4. This includes both full-time and part-time workers. Independent contractors and freelancers receive a 1099 form instead.

Understanding this distinction is key. If you are classified as an employee, you can expect a W-2 to help you file your personal income taxes.

How do you get a W-2 form?

The most efficient way to obtain a copy of your current year Form W-2 is through your employer. Your employer submits Form W-2 to the U.S. Social Security Administration (SSA). The IRS requires employers to submit by mail or electronically Copy A of their W-2s to the SSA, which then processes them and transmits the federal tax information to the IRS.

Can't reach your employer? You can get a wage and income transcript from the IRS's Get Your Tax Record page. This transcript shows the federal tax information your employer reported to the Social Security Administration.

Keep in mind that current tax year information may not be complete until July, and the transcript won't include state or local tax details from your W-2.

What information is on a W-2 form

Worried about all those boxes and numbers on your W-2? It's actually simpler than it looks—just a summary of what you earned and what taxes were paid. Key information includes:

• Your total wages, tips, and other compensation.

• Federal, Social Security, and Medicare taxes withheld from your pay.

• State and local income taxes withheld (if applicable).

• Contributions to retirement plans or other pre-tax benefits.

How to read a W-2 form

Navigating the boxes on your W-2 is simpler than it looks. Here's a quick guide to the most important ones for tax filing:

• Box 1: Wages, tips, other compensation. This is your total taxable income for the year.

• Box 2: Federal income tax withheld. This is the amount your employer sent to the IRS on your behalf.

• Boxes 3 & 5: Social Security and Medicare wages. These show the earnings subject to Social Security and Medicare taxes.

• Boxes 4 & 6: Social Security and Medicare tax withheld. These are the amounts withheld for these specific programs.

• Box 17: State income tax. This shows the total amount of state income tax withheld from your paychecks.

Do employers have to mail W-2 forms to their employees? When are they due?

W-2 statements can be sent in either paper or digital form and must be received by employees no later than January 31 of the following year. It's increasingly common to receive them digitally, as the IRS mandates that employers filing 10 or more information returns must do so electronically.

What's the difference between a W2 form and a 1099?

A 1099-MISC is a tax form used by employers to report payments made to independent contractors (who cover their own employment taxes). A W-2 form is used by employers to report compensation made to employees (whose employer withholds payroll taxes from their earnings).

What happens if you have two W-2 forms from different employers?

If you work for multiple employers at the same time, or for different employers at various times throughout the year, you may have multiple W-2s, all of which must be included when filing your taxes. If you worked more than one job during the previous year, you must wait until you receive every W-2 form in order to file your taxes.

What happens if you don't receive a W-2 form?

The majority of employers will send you a message with a link to an online portal where you can securely download the form. Contact your employer first to find out how they sent out your W-2 form and how you can access it. If it was mailed to an incorrect address, your employer can issue you an additional copy directly. Per IRS rules, employers must provide a requested W-2 within 30 days of the request or the final wage payment.

Still no W-2 after contacting your employer? The IRS recommends waiting until the end of February before getting them involved.

Here's what to do next:

• Call the IRS: Contact them at (800) 829-1040 after February ends

• Let them handle it: The IRS will contact your employer and remind them of penalties for not issuing W-2s

If IRS intervention doesn't produce the form you need, you are still required to file by the tax deadline to avoid penalties. In this case, you should fill out Form 4852. Form 4852 is a substitute for Form W-2 that taxpayers can complete if they haven't received a W-2, or their employer issued an incorrect W-2.

If you receive a W-2 or order a Wage and Income Transcript after filing your tax return and the information you receive is different from what you reported on your tax return, you may need to amend your tax return.

Understanding W-2s in a global workforce

Form W-2 is a U.S.-specific document. When you build a global team, tax and employment compliance becomes much more complex. Each country has its own version of a wage and tax statement, with different rules, deadlines, and formats.

This is where a global employment platform can help. Instead of navigating dozens of different tax systems, Oyster helps you hire, pay, and care for your team members compliantly, no matter where they live. We handle the local legal and tax requirements, so you can focus on building a great team. For U.S.-based companies hiring talent abroad, this means you don't have to become an expert on every country's tax forms. Start hiring globally and let Oyster manage the local compliance for you.

FAQs

What is your W-2 form for?

A W-2 summarizes your annual earnings and tax withholdings so you can file your federal and state tax returns.

What is the difference between a W-9 and a W-2?

A W-2 reports employee wages and tax withholdings, while a W-9 collects tax information from contractors before payment.

Is a W-2 the same as a 1099?

No—W-2s are for employees with tax withholdings, while 1099s are for contractors who pay their own taxes.