What is a W-2 form

This article is general information, not tax advice. Tax rules change and depend on your situation, so check the IRS or a qualified tax professional for your own return. The W-2 is a US form. Canada uses the T4 slip, noted near the end.

What a W-2 form is

A W-2, officially the Wage and Tax Statement, is a form your employer completes and sends to you and to the government each year. It summarizes how much you earned as an employee and how much was withheld from your pay for income tax, Social Security, and Medicare. When you file your tax return, you use the numbers on your W-2 to report your wages and the tax already paid on your behalf.

The key idea is that a W-2 is for employees. If you are on a company payroll and taxes come out of each paycheck, you get a W-2. The form is proof of both your earnings and the tax that was withheld, which is why you need it before you can file an accurate return.

Who receives a W-2?

You receive a W-2 if you were an employee during the year and were paid wages from which taxes were withheld. This covers full-time and part-time employees across almost every kind of job. A few points help clarify:

• Employees get a W-2 from each employer they worked for during the year.
• People with multiple jobs get a separate W-2 from each employer.
• Independent contractors and freelancers do not get a W-2. They usually get a 1099 instead, because they are not employees and taxes are not withheld for them.

If you worked as an employee and did not receive a W-2 by the time they are normally sent, contact your employer, because you need it to file.

When do you get your W-2?

Employers are generally required to send W-2 forms to employees by the end of January for the prior tax year. That timing is meant to give you enough time to file before the usual mid-April tax deadline. Your employer also sends a copy to the Social Security Administration. You might receive your W-2 by mail, or electronically if your employer offers digital delivery and you agreed to it. If it has not arrived by early February, reach out to your employer or payroll department to confirm where it was sent.

The main boxes on a W-2 explained

A W-2 looks busy, but most of the boxes fall into a few groups. Here is what the important ones mean:

• Boxes a through f hold identifying details: your Social Security number, the employer's identification number, and the names and addresses of both you and your employer.
• Box 1, Wages, tips, other compensation. Your taxable wages for federal income tax. This can be lower than your gross pay because some pre-tax deductions are removed.
• Box 2, Federal income tax withheld. The federal income tax your employer already sent to the IRS on your behalf.
• Boxes 3 and 4, Social Security wages and tax withheld. The pay subject to Social Security and the amount withheld for it.
• Boxes 5 and 6, Medicare wages and tax withheld. The pay subject to Medicare and the amount withheld.
• Boxes 15 through 20, state and local information. Your state wages, state income tax withheld, and any local tax details.

You do not calculate these numbers yourself. Your employer fills them in from payroll records, and you copy them onto your tax return or enter them into tax software.

W-2 vs 1099: the key difference

The W-2 and the 1099 both report income, but they describe two different working relationships. A W-2 is for employees, where the employer withholds taxes from each paycheck and reports the totals. A 1099 is for nonemployees such as freelancers and contractors, where usually no tax is withheld and the person is responsible for paying it themselves. If you had taxes taken out of your pay and were on a payroll, expect a W-2. If you were paid as an independent worker with nothing withheld, expect a 1099. Our guides on the 1099 form and how to fill out a W-9 cover the contractor side.

How your W-2 connects to your W-4

These two forms work as a pair. When you start a job, you fill out a W-4, which tells your employer how much tax to withhold from your pay based on your situation. Throughout the year, the employer withholds tax according to that W-4. At year end, the W-2 reports the total wages you earned and the total tax that was actually withheld. If your W-4 was set up well, the amount withheld should be reasonably close to what you owe, so you avoid a large bill or a large refund. Our guide on how to fill out a W-4 explains how to set your withholding.

What to do when you get your W-2

1. Check your details. Confirm your name and Social Security number are correct, since an error can delay your return.
2. Compare it to your final pay stub. The year-end totals should line up reasonably with your last pay stub of the year.
3. Gather all of them. If you had more than one job, wait until you have a W-2 from every employer before you file.
4. Use it to file. Enter the box amounts onto your tax return or into tax software.
5. Keep a copy. Save your W-2 with your other tax records in case you need it later.

What if your W-2 is wrong or missing?

Mistakes happen, and there is a clear path for each problem. If your W-2 shows the wrong name, Social Security number, or wage amount, contact your employer and ask them to issue a corrected form. Do not file with numbers you know are wrong, because the IRS receives a copy too. If your W-2 never arrives, first confirm your employer has your correct address, then ask for a reissued copy. If you still cannot get it after reasonable effort, the IRS has a process for filing without it, but getting the correct W-2 from your employer is always the better first step.

For employers: sending W-2 forms

If you run a business with employees, you are responsible for preparing a W-2 for each one, sending their copy by the end of January, and filing copies with the Social Security Administration. You report each employee's wages and the taxes you withheld during the year, drawn from your payroll records. Accuracy matters, since employees rely on these figures to file and the government matches them against returns. You can fill the forms out on your computer rather than by hand, then distribute clean copies to your team. Collect each employee's details up front with the onboarding forms they complete, including the W-4.

What about Canada?

The W-2 is a US form and does not exist in Canada. The closest Canadian equivalent is the T4 slip, the Statement of Remuneration Paid, which employers send to employees and to the Canada Revenue Agency each year. Like the W-2, the T4 reports your employment income and the amounts withheld, such as income tax, Canada Pension Plan contributions, and Employment Insurance premiums. Canadian employees use the T4 to file their return, much as US employees use the W-2.

Keep your W-2 and tax forms organized

Whether you receive W-2s or send them, staying organized makes tax time easier. Keep every form in one folder, digital or paper, and check each one against your records as it arrives. If you prepare forms for employees, you can fill and store them online instead of writing by hand. Open our fill a PDF tool, add the form, type the details into the right boxes, and download a clean copy. Because the file is processed in your browser, sensitive tax details stay on your own device rather than being uploaded to a server. Browse the templates library for other tax and payroll forms you can complete the same way, and add a signature where a form needs one with the sign a PDF tool.