The W2 form definition is used by employers to report employees‘ wages to the Internal Revenue Service (IRS). The W-2 is also used to report the amount of taxes that have been withheld from each paycheck.
W2 Form Explanation
The W2 form is required to be filled out by January 31 of every year by employers. The IRS requires this because it wants to measure an employee’s W 2 earnings on a calendar year instead of the company’s fiscal year. Often times an employee is required to fill out more than one w-2 if that employee works in more than one state. Other times two forms are required if a person works in one state, but lives in another. Overall, the W2 is used by the IRS to match up wages and calculate tax amounts for FICA and Social Security.
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