Form W-2: Wage and Tax Statement

Form W-2 is generally completed by gathering the employer’s payroll and employee information and entering the applicable wage, withholding, benefit, and tax amounts. The information should generally agree with the employer’s payroll records and employment tax reporting.

The basic process is to gather employee and employer information, determine the applicable wages and taxes, enter the required amounts in the appropriate boxes, review the completed form, and provide the required copies. Employers should retain supporting payroll records for the information reported on Form W-2.

Section 1

Enter the employer’s identifying information and employee information. This generally includes the employer’s name, address, employer identification number, employee name, address, and identifying information.

The information should be reviewed carefully to make sure it is accurate and consistent with the employer’s payroll and employee records.

Section 2

Enter the employee’s applicable wage and federal income tax withholding information. The amounts generally come from the employer’s payroll records for the applicable reporting period.

Employers should compare the amounts with their payroll records to help ensure that wages and federal income tax withholding are reported accurately.

Section 3

Report the employee’s applicable Social Security wages and related information. These amounts generally reflect wages subject to Social Security tax based on the employee’s payroll records.

Employers should review the information carefully and make sure the reported amounts agree with the applicable payroll and employment tax records.

Section 4

Report the amount of Social Security tax withheld from the employee’s wages. The amount should generally be based on the employer’s payroll and withholding records.

Employers should verify the amount before completing the form to help prevent differences between Form W-2 and other employment tax records.

Section 5

Report applicable Medicare wages, tips, and Medicare tax withheld. The information generally comes from the employer’s payroll records and should reflect the applicable compensation subject to Medicare tax.

Employers should review the Medicare wage and withholding information carefully and make sure it agrees with their payroll records.

Section 6

Report applicable additional Medicare tax withholding when required. This information should generally be based on the employer’s payroll and withholding records.

Only applicable amounts should be reported. Employers should review the information to make sure any reported amount is supported by their payroll records.

Section 7

Report applicable employee tips that are subject to reporting requirements. Tip information should generally be based on the employee’s reported tips and the employer’s payroll records.

Employers should review tip information carefully to help ensure that applicable tips are properly reflected on Form W-2 and related employment tax records.

Section 8

Report applicable allocated tips or other information when required. The information should generally be based on the employer’s records and the requirements applicable to the employee.

If this information does not apply, employers should generally not enter an amount simply to complete the form.

Section 9

Review applicable employee benefit, retirement plan, or other information that may be required to appear on Form W-2. Only information that applies to the employee should generally be reported.

Employers should maintain records supporting any benefits or other amounts reported on the form and make sure the information is consistent with the employer’s records.

Section 10

Enter applicable dependent care benefits or other reportable amounts when required. The information should generally be based on the employer’s records for benefits provided to the employee.

Employers should review these amounts carefully and confirm that they are reported consistently with the applicable benefit and payroll records.

Section 11

Report applicable nonqualified plans or other compensation information when required. The amounts should generally be supported by the employer’s payroll and compensation records.

Employers should review the information before completing the form to help ensure that applicable compensation is reported accurately.

Section 12

Enter applicable codes and amounts for certain benefits, compensation, retirement plans, or other information. The appropriate code and amount should generally reflect the employee’s circumstances and the employer’s records.

Employers should review each applicable code and amount carefully and retain supporting records for the information reported.

Section 13

Indicate applicable information regarding statutory employees, retirement plans, third-party sick pay, or other circumstances when required. Only the items that apply to the employee should generally be selected.

Employers should review this section carefully because the information may affect how the employee reports the information on their tax return.

Section 14

Enter other applicable information that may be required for the employee’s wage and tax reporting. This may include certain state, local, or employer-provided information when applicable.

The information should be reviewed for accuracy and should agree with the employer’s payroll and applicable reporting records.

Section 15

Enter applicable state and employer information when required. State reporting information generally includes the applicable state identification information and state wage and tax amounts.

Employers should verify state information before providing Form W-2 to the employee and submitting applicable wage information.

Section 16

Report applicable state wages. The amount should generally be based on the employer’s payroll records and the state reporting requirements that apply to the employee.

Employers should review the state wage amount to make sure it is accurate and consistent with the applicable payroll records.

Section 17

Report applicable state income tax withheld from the employee’s wages. The amount should generally agree with the employer’s state payroll and withholding records.

Employers should review the amount carefully before completing the form to help prevent differences between Form W-2 and state tax records.

Section 18

Report applicable local wages when required. Local wage information should generally be based on the employer’s payroll records and the local reporting requirements that apply.

Employers should confirm that the applicable local wage information is accurate before providing the completed Form W-2.

Section 19

Report applicable local income tax withheld. The amount should generally be based on the employer’s payroll and local withholding records.

Employers should review local withholding information carefully and make sure it agrees with the applicable payroll records.

Section 20

Enter the applicable local or other jurisdiction information associated with the amounts reported on Form W-2. This information may identify the jurisdiction associated with local wages or taxes.

The information should be reviewed for accuracy and consistency with the employer’s state and local payroll records.

Final Review

Review Form W-2 after completing all applicable sections. Check the employer information, employee information, wages, federal income tax withheld, Social Security wages and tax, Medicare wages and tax, tips, benefits, applicable codes, state information, local information, and final amounts.

A final review can help identify calculation or reporting errors before the form is provided or submitted. Employers should retain Form W-2 and supporting payroll records with their employment tax records.