W-2

What is Form W-2?

Form W-2, also known as the Wage and Tax Statement, is a document that employers send to each employee and the Internal Revenue Service (IRS).

• It shows the income earned from an employer and the amount of taxes withheld from an employee's paycheck.
• Taxpayers use Form W-2 to file federal and state taxes.

Who needs to file Form W-2?

• Employers engaged in a trade or business who pay remuneration (including noncash payments of $600 or more) for services performed by an employee must file a Form W-2.
• Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship.
• It applies even if the employee is related to the employer.