A W-2 form is a document provided by an employer to an employee, typically on an annual basis, to report the employee's wages, salary, and other compensation for the purpose of income tax filing. It includes information such as total earnings, taxes withheld, and contributions to retirement plans or other benefits.
The W-2 form includes details about the income tax, Social Security tax, and Medicare tax withheld from the employee's paychecks throughout the year. These withholdings are based on the employee's tax filing status, exemptions claimed, and the information provided on the W-4 form submitted to the employer. Additionally, the W-2 form may include information about certain employee benefits, such as contributions to retirement plans, health insurance premiums, or other pre-tax deductions. These amounts may be listed separately or included in the total taxable wages reported on the form.
The W-2 form also includes the employee's contributions to Social Security and Medicare. These amounts are used for calculating the individual's eligibility for Social Security benefits and Medicare coverage.
The information on the W-2 form is used by employees to complete their individual income tax returns. The form is typically provided by the employer by the end of January, and employees are required to include it when filing their federal and state income tax returns. The W-2 form helps ensure accurate reporting of income and taxes paid by the employee.