W2 Form

W2 Form Definition

The W2 form 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 Explained

The W 2 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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w2 form

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w2 form

See Also:

401k
Cash Flow After Tax
Deferred Income Tax
Form 1098
Marginal Tax Rate

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