W-2 Form Explained: Everything Employees Need to Know

What is a W-2 Form?

Form W-2, officially called the "Wage and Tax Statement," is a tax document that employers must provide to employees and the IRS. It summarizes your total earnings and the taxes withheld during the year.

When Will You Receive Your W-2?

Employers must send W-2 forms by January 31 each year. You should receive it by mid-February at the latest. If you moved, update your address with your employer to avoid delays.

Understanding the W-2 Boxes

Box 1: Wages, Tips, Other Compensation

Your total taxable wages. This may be different from your gross pay if you have pre-tax deductions (401k, health insurance).

Box 2: Federal Income Tax Withheld

Total federal income tax your employer withheld. This comes from your W-4 selections.

Box 3: Social Security Wages

Wages subject to Social Security tax. Capped at the annual wage base ($168,600 for 2024).

Box 4: Social Security Tax Withheld

Should be 6.2% of Box 3 (up to the cap).

Box 5: Medicare Wages and Tips

Wages subject to Medicare tax. There's no cap for Medicare.

Box 6: Medicare Tax Withheld

Should be 1.45% of Box 5 (plus 0.9% additional Medicare tax on wages over $200,000).

Boxes 7-8: Tips

Social Security tips and allocated tips (if applicable).

Box 10: Dependent Care Benefits

Amount of dependent care FSA benefits provided.

Box 11: Nonqualified Plans

Distributions from nonqualified deferred compensation plans.

Box 12: Various Codes

Reports various types of compensation with letter codes:

• Code D: 401(k) contributions
• Code E: 403(b) contributions
• Code DD: Health insurance cost (informational only)
• Code W: HSA employer contributions

Box 13: Checkboxes

• Statutory employee
• Retirement plan participant
• Third-party sick pay

Boxes 15-20: State and Local Information

State ID, state wages, state tax withheld, local wages, and local tax withheld.

What to Check on Your W-2

1. Personal information: Name and SSN are correct
2. Box 1 vs your final pay stub: Should be close (may differ due to pre-tax deductions)
3. Box 2: Matches your pay stub YTD federal tax
4. Boxes 3-6: FICA taxes calculated correctly
5. State information: Correct state and amounts

What if My W-2 is Wrong?

1. Contact your employer immediately
2. Request a corrected W-2 (Form W-2c)
3. Document your communications
4. If employer won't correct, file Form 4852 as a substitute
5. Contact the IRS if needed: 1-800-829-1040

Multiple W-2 Forms?

If you worked multiple jobs, you'll receive a W-2 from each employer. Add all amounts together when filing your tax return.

Lost Your W-2?

• First, request a copy from your employer
• Check online payroll systems (ADP, Paychex, etc.)
• Contact the IRS for a wage transcript (Form 4506-T)
• File Form 4852 if you can't get a W-2 in time

Need to Create a W-2?

If you're an employer who needs to generate W-2 forms for your employees, use our W-2 generator to create accurate, IRS-compliant forms.