Wage and Tax Statement
Reports annual wages paid and taxes withheld for each employee. Sent to employee, SSA, and state tax authority.
Who Files This Form
Employers (for each employee)
Due Date
January 31 (to both employees and SSA)
Even S-Corp owner-employees receive W-2s for their 'reasonable salary.' Late filing penalty starts at $60 per form and increases over time.
Box 1: Wages, tips, other compensation (federal taxable). Box 2: Federal income tax withheld. Box 3: Social Security wages. Box 4: Social Security tax withheld (6.2%). Box 5: Medicare wages. Box 6: Medicare tax withheld (1.45%). Box 12: Codes for special items (DD = health insurance, D = 401k, W = HSA). Box 14: Other information (employer use). Boxes 15-20: State and local tax info.
1) Wrong SSN for employee. 2) Misclassifying 401(k) contributions in Box 12. 3) Not reporting third-party sick pay. 4) Incorrect state/local wage allocation for multi-state employees. 5) Forgetting to file with SSA (must file W-2 + W-3 transmittal). 6) Using wrong control number. 7) Not providing copies to all required parties (employee, SSA, state).
Employers order from IRS (free for small businesses), purchase from office supply stores, or use payroll software (QuickBooks, Gusto, ADP) which auto-generates and files W-2s. Employees receive from employer by January 31.
Yes, employers must e-file W-2s with SSA if filing 10+ forms (W-2 Online at ssa.gov/bso). Payroll software handles this automatically. Employees use W-2 info to file their personal tax return.
Late filing: $60-$310 per form depending on how late. Intentional disregard: $630+ per form. Wrong SSN: $60 per form. Failure to furnish to employee: $60-$310 per form. File on time to avoid these.
Official IRS Source
Always download the current version and instructions from the IRS website before filing.