2 - Form W-2 - Employees
What happens with Copy 1?
Copy 1 (if required) is for state, city, or local tax departments.
What happens with Copy D?
Copy D is for the employer's records.
Who are W-2's for?
Employees - Employers need to create a Form W-2 for every employee paid during the previous year. They need to create a Form W-2 even if the employee was paid for one day. They also need to send out a Form W-2 for relatives they employ.
When are W-2 forms due?
Employers must complete and send Form W-2 to employees by January 31st.
How is Form W-2 distributed? What are the copies?
Form W-2 has six copies labeled as A, B, C, D, 1, and 2.
What if January 31st falls on a weekend or holiday?
Form W-2/W-3 is due on the next business day.
What must Form W-2 be sent along with?
Form W-3 must be sent to the Social Security Administration by January 31st. Forms W-2 and W-3 can be sent by mail or by e-filing.
What happens with Copy A?
It goes to Social Security Administration (with Form W-3).
Where can an employer obtain a W-2 form?
The Form W-2 on the IRS website is for informational purposes only. Employers must purchase official copies of Form W-2 from the IRS or an authorized seller.
How often is the W-2 form updated?
The IRS updates Form W-2 each year, so it's important to be sure to use the correct version of the form and its instructions.
What happens with Copies B, C, and 2?
They all go to the employee.
What are W-2's used for?
To report to the government how much an employer paid to and withheld from each employee.
Is there any type of worker a W-2 is not used for?
Yes, independent contractors. Employers fill out the 1099 form for contractors.
What information should be included on each Form W-2? (6 items)
- Employee Social Security number - Employer Identification Number (EIN) - Business's name, address, and zip code - Employee's name, address, and zip code - Wages, tips, and other compensation - Taxes withheld (e.g. income taxes, social security taxes, and Medicare taxes). **Other spaces such as allocated tips and nonqualified plans should only be filled out if appropriate. Employer's can use the Instructions for Form W-2 to learn exactly what to put in each box.
What are 3 common errors employers make when filling out a W-2.
- Using Form W-2 directly from the IRS website - Using the wrong name for an employee. (Make sure to use the employee's legal name). - Using dollar signs. (Employers do not need to include dollar signs in any of the money fields).
