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<img src="https://www.realcheckstubs.com/storage/posts/multiple-w2-forms.jpg" alt="How do I handle multiple W-2s from the same employer?" width="1413" height="724" />
According to the Bureau of Labor Statistics, about 4.8% of total employed men and 6.1% of employed women in the US had multiple jobs in 2024. Inflation, economic instability, and the increasing demand for side hustles are some of the reasons why many individuals have multiple jobs.
If you're one of them, you'll probably receive multiple W-2 forms at the end of each tax year. That adds an extra level of complexity to tax filing. However, there's no need to panic. We'll guide you on what to do if you have two or more W-2 forms.
<h2>Can You Have Two W-2 Jobs At the Same Time?</h2>
First, let's make this clear. You can absolutely have two or more W-2 jobs at the same time. There's no limit on how many <a href="https://www.realcheckstubs.com/blog/w-2-form/w-2-wage-and-tax-statement-form-for-small-business" target="_blank" rel="noopener">W-2 forms</a> you can receive as long as they come from legitimate employers who withhold taxes from your paycheck.
That means you may work as a marketing manager at a company and teach at your local community college during weekends. Both jobs will give you W-2 forms at the end of each fiscal year.
<h3>Do You Need a Separate W-2 for Each Job?</h3>
If you work for two different employers, you'll need separate W-2 forms for each job since each company has to report your income and withhold taxes independently.
However, if you do multiple jobs at the same organization, you may only get one W-2 form. For example, in their FAQs on W-2 status, the University of Utah has explained that students who have done multiple jobs at the university will get a single W-2 form.
Similarly, if you work at a food chain restaurant as a cashier in one branch for a few months and another one for the rest of the year, you'll likely only receive one W-2 form. However, there may be exceptions, as we explain below.
<h3>Can You Get Two W-2 From Same Employer?</h3>
Suppose you worked at a company's office in Chicago for the first six months of a year as a junior manager. You were then transferred to their Los Angeles office for the remaining half after being promoted to the senior manager position. At the end of the year, you get two W-2 forms.
You may wonder: why did I get two W-2s from the same company? Even more surprisingly, why did I get 2 W-2s from the same employer with different amounts?
Sometimes, the same employer may send you two W-2 forms. They may have switched to a new payroll provider during the year. Or if you're an intern, you previously worked part-time and then full-time when the employer hired you. In these situations, your employer may send two W-2 forms for tax purposes.
The amount on these W-2 forms differs if your income has changed during the year. In the example above, the first W-2 form will reflect what you got paid as a junior manager, and the second form will have a higher tax rate (and salary) on the W-2 form since you're now a senior manager.
<h2>How to File Multiple W-2 Forms From Different Employers?</h2>
You might think: if I have two W-2 forms, do I add them together? Well, the answer is yes and no.
When you have multiple W-2 forms from different employers, you have to file both of them on your tax return. However, you don't need to add both amounts. Instead, file each W-2 form separately.
Let's take the same teacher and marketing manager example to explain how to do this. To start, collect both W-2 forms from respective employers. Then, start your tax filing process. You may use tax software or hire a tax professional to help you. The IRS has a Free File Program, which allows eligible taxpayers to use tax software for free.
Enter the information from your first W-2 (marketing job) first. Double-check the details for accuracy. Then, do the same for the second W-2 (teaching job). If you have more W-2 forms, repeat the process.
Your tax software will then calculate your total income and taxes from both jobs on your final tax return. If you're filing on your own, you'll need to do these calculations manually.
<h2>Conclusion</h2>
If you've ever approached the tax season wondering: what if I have two W-2 forms from different employers, you now know what to do. The easiest route is to use tax software and file each W-2 separately.
You can use a <a href="https://www.realcheckstubs.com/blog/w-2-form/free-w2-generator" target="_blank" rel="noopener">W-2 form generator</a> to get this important document in time for your tax returns. If you have a complicated tax situation, work with a professional to save time and hassle.
<h2>Frequently Asked Questions</h2>
<h3>Is having multiple W-2s bad?</h3>
Having more than one W-2 form is not always a bad thing. It simply shows that you had multiple sources of income during the tax year. However, this could mean you end up paying more in taxes since you may be in a higher tax bracket.
<h3>Why do multiple W-2s hurt your tax return?</h3>
Multiple W-2s typically mean a higher income, which ultimately leads to a higher tax rate since you're now earning more. However, this isn't always the case, as it depends on your tax bracket and deductions. Having more than one W-2 only hurts your tax return if they have pushed you into an upper tax bracket where the rates are higher.
<h3>How to file two W-2 forms from different employers in TurboTax?</h3>
In your TurboTax tax return profile, go to the W-2 section. Click the Add/Edit option to enter your first W-2 information. Once done, repeat the process for the second W-2 form. Since there's an option to edit each form, you should double-check the information before filing your taxes. Explore more <a href="https://www.realcheckstubs.com/blog/tax/file-taxes-with-last-pay-stub-on-turbotax">How to File Taxes With Last Pay Stub on TurboTax</a>
<h3>What if I get two W-2 forms from the same employer with duplicate information?</h3>
If you receive two W-2 forms from the same employer with identical information, you only need to enter one of them in your tax return. However, it's always best to keep both copies for your records. You should also inform your employer that you have received two similar copies.&nbsp;
References:
<ul>
<li><a href="https://www.bls.gov/news.release/pdf/empsit.pdf">https://www.bls.gov/news.release/pdf/empsit.pdf</a></li>
<li><a href="https://fbs.admin.utah.edu/tax-services/w2_form/w2-faq/">https://fbs.admin.utah.edu/tax-services/w2_form/w2-faq/</a></li>
<li>https://www.irs.gov/filing/irs-free-file-do-your-taxes-for-free</li>
</ul>

How to handle multiple W-2 forms from different or same employers. Find expert tips on filing accurate taxes.

Multiple W2 Forms: What to Do & How to File

What to Do With Multiple W-2 Forms From the Same or Different Employers?

As tax season comes around every year, you&rsquo;ll use your W-2 to determine how much taxes you owe as you&rsquo;ll need to enter the information displayed from it.&nbsp;
An online W-2 form generator can be very beneficial for a company and individual employees. For starters, putting all this information online is easy and makes it accessible. You and your employees can share the information and you can see the income information from the workers in your company.&nbsp;&nbsp;
Generating the forms online also ensures that they do not get lost. Paper forms are harder to keep track of and employees may lose them from time to time. Having them online also allows the employees to be able to access them all the time and refer back to them when needed.
So, how can you get your form w-2 online for free? Let&rsquo;s keep reading!
<img src="https://www.realcheckstubs.com/storage/posts/free-w2-generator.jpg" alt="free w2 generator" width="1272" height="652" />
<h2>W-2 Form: An Overview</h2>
Here is all the information you need to know about <a href="https://www.realcheckstubs.com/blog/w-2-form" target="_blank" rel="noopener">W-2 forms</a> and how to use them when it comes to filing taxes.
<h3>What is a W-2 Form?</h3>
A W-2 form is given to all employees of a company to show their income, the taxes withheld from their paychecks, and their benefits from the year. The IRS uses these forms to determine your wages and then applicable taxes depending on your income.&nbsp;
It also shows health insurance, dependent care assistance, and other contributions you might give or receive. You will receive a W-2 form every time you work.
<h3>Benefits of a W-2 Form</h3>
All employees need a W-2 form because they will need to enter the information it has when they are filing their taxes. If you do not receive this form, you will not be able to file your taxes because you will not have all the necessary information.&nbsp;
Your benefits are also listed on the form so you know how much you are contributing and receiving from health insurance plans and other state programs when applicable.
<h2>How to create a W-2 form?</h2>
There are several things you need to know before creating a W-2 form. You need to make sure they are done accurately so your employees do not have any issues when it comes to taxes.
<h3>Choose Your Filing Format</h3>
Choose whether you want to file online or if you want to mail in the form. The forms will look a little different depending on which one you choose but they have the same information.
<h3>Gather Employee Wage Information</h3>
Next, you need to get all the information about your employees&rsquo; wages including tips and all forms of compensation. You need to total all the money they earn and enter it into the right line.
<h3>Enter Data Into Each Form</h3>
The form will have certain areas and lines where you have to enter tax information or whatever is asked for. Make sure you enter the right data and do not leave lines blank unless they do not apply to you.
<h3>Review &amp; Utilize</h3>
Before submitting it, make sure to review it and ensure everything is correct. Then you can submit it online or you can print it to file it through the mail.
Nice to Know: How to Calculate W-2 Wages from Pay Stub?
<h2>Documents required to generate a W-2 Form</h2>
There are many documents you need to make sure you can generate an accurate W-2 form including:
<ul>
<li style="font-weight: 400;" aria-level="1">The name of your business, the address, and your state Tax ID number&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">The names of your employees, their addresses, and their social security numbers&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">The employee&rsquo;s total wages, social security, contributions mad benefits&nbsp;</li>
</ul>
<h2>Tips To Read the W-2 Form</h2>
Make sure you read each line before filling in the information. Under the income section, list total wages including all compensation like tips, Medicare, and Social Security tips.&nbsp;
Under withholdings, you can put the amount of taxes your employee has paid whether it be federal income, Medicare tax, or taxes from Social Security.&nbsp;
There are several other boxes to look at but they do not all need to be filled in. Some employees will need to have extra boxes filled in depending on their unique situation. We provide tips on our W-2 form generator to help you know which ones to fill in.
<h2>Free W-2 Form Generator</h2>
Creating and downloading W-2 forms is important and easy to do with free w2 generators.&nbsp;
Keep in mind you cannot use fake information when making W-2 forms as the IRS compares data and will know if the information reported is not correct.&nbsp;
Need to Know: <a href="https://www.realcheckstubs.com/blog/w-2-form/how-to-spot-a-fake-w-2">How to Spot Fake W2?&nbsp;</a>
<h3>How Do You Find Your Form W2 Online For Free?</h3>
You can get your Form W-2 from the <a href="https://www.irs.gov/faqs/irs-procedures/transcript-or-copy-of-form-w-2">IRS</a>.
You can get a free wage and income transcript online from the IRS website. This transcript contains the federal tax information from your W-2. To get the transcript, you can:
<ul>
<li style="font-weight: 400;" aria-level="1">Visit the IRS "Get Your Tax Record" page.</li>
<li style="font-weight: 400;" aria-level="1">Use Form 4506-T and select the box for Form W-2.</li>
</ul>
However, if you need an actual copy of your W-2, you can only get it online for free if your employer offers an online portal for employees to access their tax documents. Otherwise, you'll need to request it directly from your employer or the Social Security Administration.
Explore: <a href="https://www.realcheckstubs.com/blog/w-2-form/how-can-i-get-a-copy-of-my-w2-if-i-lost-it">How Can You Get a Copy of W2 If you Lost It?</a>&nbsp;

An online W-2 form generator can be very beneficial for a company and individual employees. So, how can you get your form w-2 online for free?

Free W2 Generator: How Can You Get Form W-2 Online for Free?

How Can You Get Form W-2 Online for Free?

<img title="Pay Stub Deduction Code: Definiton, Existence, Kinds, Benefits and Limitations" src="https://www.realcheckstubs.com/storage/posts/Paystub_Deductions.webp" alt="Pay Stub Deduction Code: Definiton, Existence, Kinds, Benefits and Limitations" width="690" height="353" />
&nbsp;
Employers and employees scramble to prepare their financial statements and reports during tax season. This ensures they can submit their tax returns on time, as the US government requires. Two documents have come up and need clarification for employees. These are pay stubs and W-2 forms. Employees sometimes need help telling the difference between them, which can make tax season confusing.
Additionally, the information and figures written on both these documents tend to differ, making them think there is some mistake. Not to worry, we have you sorted out. In this article, we will discuss their main differences so that you can understand precisely how pay stubs and W-2 forms work. Without further delay, let's dive in.
<h2>What are pay stubs and W-2s?</h2>
Before we understand their differences, it is a good idea to understand what each document is. Pay stubs are documents detailing an employee's gross wages for each pay period, usually monthly. Essentially, they provide a clear outline to employees of their payment and can act as proof of income, as they are generally attached to a physical paycheck. However, online pay stubs are beginning to grow popular, and <a href="https://www.realcheckstubs.com/">Real Check Stubs</a> specializes in them.
On the other hand, W-2 forms, aka Wage and Tax Statements, are required documents that employers must send their employees. The employees choose if they want to make contributions like <a href="https://www.irs.gov/retirement-plans/401k-plans">401(k)</a> and healthcare contributions, after which the employer sends the receipt to the <a href="https://www.irs.gov/forms-pubs/about-form-w-2">IRS</a>. The wages, besides these contributions, are considered taxable. In this way, a W-2 form can be regarded as an annual after-tax pay stub.
<h2>1. Pay Stubs show gross earnings without tax deductions or withholdings.</h2>
A critical difference between pay stubs and W-2 forms is that Pay Stubs are the employer's documents detailing the total amount you earned before taxes and deductions. It also showcases the net pay, the actual amount you receive. On the other hand, the W-2 form displays the wages after any pre-tax deductions that have been made. Some pre-tax deductions that lead to taxable wages are health insurance plans, life insurance, and 401(k) contributions. Hence the wages on the W-2 form will likely appear lower than those on paystubs.
<h2>2. Non-Taxable Income Earnings are included in pay stubs but not in W-2 forms.</h2>
Non-taxable items are not included in an employee's W-2 form because they are not taxable to the employee. Various non-taxable items could be involved, including reimbursements for mileage and allowances for food and travel. This leads to a difference in figures between pay stubs and W-2 forms caused by non-taxable items lowering gross taxable wages. For example, suppose you as an employee receive $5000 as mileage allowance while having gross wages of $60,000. This will make the wages on your W-2 form $55,000, as 60,000-5000 = 55,000.
<h2>3. Participating in a company-sponsored retirement plan will reduce certain taxable wages.</h2>
Specific <a href="https://www.irs.gov/retirement-plans">retirement plans</a>, like a 401(k), reduce your taxable state and federal wages. These wages are reported in Boxes 1 and 16 of the W-2 form and are considered pre-tax reductions. Suppose you are an employee whose gross wages are $40,000 and contribute $5000 towards a 401(k) retirement plan each year. Since the W-2 only reports taxable portions of the salaries, this would mean that $35,000 will appear on the W-2 form, while the gross wages ($40,000) will appear in the pay stub.
<h2>4. Participating in a pre-tax health insurance plan through the employer company.</h2>
Participating in <a href="https://www.irs.gov/affordable-care-act/form-w-2-reporting-of-employer-sponsored-health-coverage">pre-tax health insurance</a> is usually the primary reason most taxpayers have differing figures on their pay stubs and W-2 forms. This is because it lowers the taxable wages reported in Boxes 1, 3, 5, and 16 of the W-2 form. The amount you pay for this health insurance will be eliminated from your taxable wages. For example, suppose you spend $5000 for your pre-tax health insurance per year while having gross wages of $60,000. This will make the taxable wages on your W-2 $55,000, while the gross wages on your pay stub will be $60,000.
<h2>5. The period for payroll wages differs from the calendar year.</h2>
The rule of the IRS is that only the paid wages are reported rather than the earned ones. This sounds confusing, so that we will simplify it with an example. As an employee, you are paid monthly wages for the work done in the previous month. For example, your wages on January 1st are earned for the work done during December. In this case, your pay stub will display the pay for December, but this will not be considered in your W-2 for the following year. In essence, the IRS only cares about the wages paid in a calendar year, so what your pay stub says in this instance is irrelevant. The pay stub is simply a receipt from your employer and lets you keep tabs on your payment from the employer.
<h2>Specifics of W-2 Form</h2>
Now that we have touched on the main differences, it is a good idea to understand the specifics of the W-2 form. You will have noticed that we mentioned Boxes 1, 3, 5, and 16 in this article. This is because they are essential to understanding the differences and ensuring you get everything right during tax season. So, let's look at each of their functions.
<h3>Box 1</h3>
Box 1 refers to the employer's gross taxable wages and will depend on the employee's industry and role. It includes salary, wages, tips, bonuses, commissions, etc.
<h3>Box 3</h3>
Box 3 refers to the amount of earnings that are subject to Social Security Tax. It is important to note that tips are not considered part of these earnings.
<h3>Box 5</h3>
Box 5 refers to the amount of earnings that are subject to Medicare Tax. Unlike Box 3 earnings, the amount includes tips and wages.
<h3>Box 16</h3>
Box 16 refers to the amount of earnings that are subject to state tax. This tax will vary depending on the state that you are in, so it is a good idea to refer to your local government for that. It is important to note that certain conditions in the US do not collect personal income tax.
<h2>The bottom line</h2>
Pay stubs and W-2s report salaries, yet they tend to differ in the figures provided. In this article, we have determined the key differences that will ensure you will be able to calculate precisely why these differences exist. Pay stubs are generally receipts showing an employer's salary, including non-taxable earnings. On the other hand, W-2 forms ignore these but consider taxable withholdings and deductions and factor these to offer taxable wages. Additionally, when a taxpayer invests money towards pre-tax plans, this amount is subtracted from the taxable wages that appear in the W-2 form while still appearing on pay stubs. Please take a good look at boxes 1,3,5, and 16 to ensure that you can have the best understanding of Form W-2 and examine the differences.
We hope this article has been insightful and has helped you understand the critical differences between pay stubs and W-2s. Thank you for reading!

Paystubs vs. W-2s: What's the Difference?

Each year, millions of taxpayers receive a W-2 form from their employers as proof of their income. Unfortunately, not all of these forms are accurate or even real. It is essential to know how to spot a fake W-2 to protect yourself from becoming a victim of identity theft or tax fraud.&nbsp;
Knowing the elements that make a fake W-2 can help you stay safe and ensure that your taxes are filed accurately and on time. Here, we will discuss the typical tell-tale signs of a fake W-2, how to take the necessary steps to protect yourself and your finances, and <a href="https://www.realcheckstubs.com/blog/paystubs/how-to-spot-fake-pay-stubs">spotting fake pay stubs</a> and <a href="https://www.realcheckstubs.com/blog/paystubs/fake-pay-stubs-illegal-way-of-doing-business">faking pay stubs</a>.
<h2>How does a Form W-2 looks like</h2>
Every year, companies are required to give their staff members a Form W-2. It is used to document the wages, gratuities, and other payments made to employees and the taxes deducted from their pay. Additionally, it is a vital record that employees need to file their taxes. Typically, a Form W-2 has four components.&nbsp;
The first part of the form includes the employee's information, which could be the employer's name, address, and employer identification number (EIN).&nbsp; In the same section, you can also find the employee's name, address, and Social Security number (SSN). And the second part includes their wage and salary information.&nbsp;
The third part shows the total amount of federal income and Social Security and Medicare taxes withheld from their paychecks during the year. The fourth part of the form is a summary of the information from the first three parts. It shows the employee how much they earn and how much they pay in taxes each year.
<img src="https://www.realcheckstubs.com/storage/posts/How to Spot a Fake W-2.jpg" alt="How to spot a fake w-2 form" width="1280" height="700" />
<h2>What to Look for in a Fake W2 Form</h2>
<ul>
<li style="font-weight: 400;" aria-level="1">On the W2 form paperwork, make sure an employer identification number (EIN) is on it.</li>
<li style="font-weight: 400;" aria-level="1">Check that the application information is the correct version.</li>
<li style="font-weight: 400;" aria-level="1">Verify the accuracy of all the data by comparing it to the details it refers to</li>
<li style="font-weight: 400;" aria-level="1">Confirm that the form contains the correct employer name and address.</li>
<li style="font-weight: 400;" aria-level="1">Confirm that the employer's name and contact details are valid.</li>
<li style="font-weight: 400;" aria-level="1">Check that the document has an accurate statement from the employer.</li>
<li style="font-weight: 400;" aria-level="1">Verify that the proper withholding amounts are listed.</li>
<li style="font-weight: 400;" aria-level="1">Ensure the form has the proper wages, tips, and other compensation.</li>
<li style="font-weight: 400;" aria-level="1">Check that the document has the accurate dates for the pay period.</li>
</ul>
<h2>How to Verify W-2 Information</h2>
To verify W-2 information, employers must first <a href="https://www.tax.ny.gov/bus/wt/w2-federal-return-copies.htm">request a copy of Form W-2</a> from the employee or the IRS. Once obtained, employers should compare the information on the W-2 form to the information provided by the employee or on other records, such as pay stubs or tax returns. Employers should also compare the W-2 information to the information in the employer's payroll system.&nbsp;
If there are discrepancies between the W-2 form and other documents, the employer should contact the employee to discuss the differences and make any necessary corrections. If the employer can't figure out how to fix the problems, he or she may choose to send the IRS a Form W-2C, Correction of Wage and Tax Statement. The W-2C form reports correct wage and tax information to the IRS.
<h2>How to Spot W-2 Email Fraud</h2>
Suppose you want to spot W-2 email fraud; there are a few key things to look for.&nbsp;
First, you should read the email carefully to see if there are any grammar or spelling mistakes that seem odd. Most legitimate emails from companies will be free of such mistakes. Also, look for any references to "urgent" or "immediate" action, as this is a common way for scammers to get you to act.
Another critical indicator of email fraud is if the sender's email address doesn't match the company's domain. Legitimate emails will always come from the official domain name of the company. If the sender's email address is personal, this is a major red flag, and you should definitely not trust the sender.
<h2>Common types of Form W-2 scams</h2>
<ul>
<li style="font-weight: 400;" aria-level="1">Phishing emails and text messages</li>
<li style="font-weight: 400;" aria-level="1">Fake websites and emails claiming to provide W-2 information</li>
<li style="font-weight: 400;" aria-level="1">Social engineering attacks aimed at stealing W-2 data</li>
<li style="font-weight: 400;" aria-level="1">Malware and ransomware attacks targeting W-2 data</li>
<li style="font-weight: 400;" aria-level="1">Compromised employee computers and networks</li>
<li>Unauthorized access to payroll systems</li>
</ul>
<h2>What Happens When You Get Caught With a Fake W-2 Form?</h2>
If you do end up getting caught with fake check stubs, the consequences can vary depending on the situation. Most of the time, if the IRS finds out that you used a fake W-2 form to file your taxes or get financial help, like a loan, you could face harsh penalties. Depending on how serious the situation is, you may have to pay a high fine or be prosecuted.
<h2>Frequently Asked Questions (FAQs)</h2>
<h3>Can you fake w2?</h3>
Can you fake a W2?&nbsp; Yes, you can. But should you? The answer is no. Depending on the situation, you could be charged with a crime like fraud or forgery, which could lead to fines and time in jail.
The IRS may also charge civil penalties, such as back taxes, interest, and other fees. By filing a fake tax return, you risk having to repay any money received. And the government might not give you some benefits, like student loans and other ways to get money.&nbsp;
<h3>Can you Generate a Fake W2 Form?</h3>
Yes, it is possible to generate a fake W2 form. Several online services and software programs can help create an artificial W2 form. But it is against the law in the United States to use these services or programs to make a fake W2 form, and doing so could lead to serious consequences.
<h3>Do people create fake W2s and submit them to the IRS often?</h3>
Unfortunately, people sometimes create fake W2 forms and submit them to the IRS. And this is a form of tax fraud, which can have severe consequences for those caught engaging in it. Even though it's hard to say exactly how often this happens, the IRS has charged people who made and sent in fake W2 forms.
<h3>Is it illegal to make a fake w2?</h3>
While there are many reasons for making fake pay stubs, submitting a phony pay stub or W2 to the IRS is illegal, which can result in significant penalties. According to the Internal Revenue Service (IRS), submitting false or fraudulent documents to evade or underreport taxes is a serious criminal offense. In addition to being subject to criminal prosecution, people who present a fake W2 to the IRS face potential civil fraud penalties, possible fines, and jail time.
<h3>Is it illegal to submit a fake w2 to an employer?</h3>
Yes, it is illegal. It's against the law to give an employer a false W2 form. And this may qualify as identity theft or fraud in the eyes of the law, which could result in prosecution. Also, employers must give the Internal Revenue Service (IRS) accurate information about how much employees earn and how much tax is taken out. So providing a false W2 would cause the employer to make false statements to the IRS and could be subject to civil penalties.

Fake W-2s are becoming increasingly common and can be challenging to spot. But don’t worry! Here are some pointers to spot a fake W-2 immediately.

How to Spot a Fake W-2

Learn about the employer’s responsibility when filing a W-2 Form. What is W-2 Form, what information needs to be included on it, & how to fill it out, Read now!

The Employer’s Responsibility When Filing a W-2 Form

W-2 Form: Everything You Need To Know Employer's Responsibilities

When hiring new employees for your company, you have several alternatives. W-2 employees and 1099 contractors are the two most typical employment arrangements.
W-2 employees are entitled to legal protections such as minimum pay, overtime, and medical and family leave. They are also entitled to your benefits, such as health and dental insurance, frequently better than what they can buy on their own.
This guide will help you navigate the arrangements so you can understand what sort of worker is best for your company and how to guarantee your categorization is correct. We'll also go through the legal advantages of the W-2 form for employees.
<h2 dir="ltr" style="line-height: 1.333332; margin-top: 26pt; margin-bottom: 15pt;"><span style="font-size: 17pt; font-family: Helvetica; color: #000000; background-color: transparent; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Overview of the W-2 Form and Its Purpose</h2>
<img title="Legal Benefits Of W-2 Form For Employees" src="https://www.realcheckstubs.com/storage/posts/Legal Benefits Of W-2 Form For Employees.jpg" alt="Legal Benefits Of W-2 Form For Employees"><span style="font-size: 11pt; font-family: Helvetica; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> 
<span style="font-size: 11pt; font-family: Helvetica; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The W-2 form is an essential document for both employers and employees, providing<a href="https://www.realcheckstubs.com/blog/w-2-form/w-2-wage-and-tax-statement-form-for-small-business" target="_blank"> detailed information about wages earned and taxes paid</a> during a given tax year. <span style="font-size: 11pt; font-family: Helvetica; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> <span style="font-size: 11pt; font-family: Helvetica; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">It serves as the basis of record keeping for employers regarding payroll liabilities while providing employees with <a href="https://www.realcheckstubs.com/blog/paystubs/proof-of-income-everything-you-should-know-about-it" target="_blank">proof of income </a>to file their taxes accurately.
<span style="font-size: 11pt; font-family: Helvetica; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&nbsp;
<span style="font-size: 11pt; font-family: Helvetica; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The W-2 form is required by law for all US taxpayers who receive wages from an employer. It includes information such as wages earned, federal income tax withheld, Social Security taxes paid, and any other deductions or withholdings.
&nbsp;
<h3>What is a W-2 employee?</h3>
When you recruit an employee, whether part-time or full-time, they are known as W-2 workers since you will record their salaries and all compensation for the year on a Form W-2. The W-2 form will also reflect any deductions you made from the employee's compensation. Your workers will then utilize this form to file their tax returns.
 
<h2 dir="ltr" style="line-height: 1.333332; margin-top: 26pt; margin-bottom: 15pt;"><span style="font-size: 17pt; font-family: Arial; color: #000000; background-color: transparent; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Benefits for Employers - Understanding Payroll Liabilities</h2>
<span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">For employers, a W-2 form is a valuable tool for <span style="font-size: 11pt; font-family: Arial; color: rgb(0, 0, 0); background-color: transparent; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">understanding their payroll liabilities<span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. The form provides employers with detailed information about how much money they have withheld from their employee’s wages and how much they are responsible for in taxes.
<span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> <span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">You may be interested:&nbsp;<a href="https://www.realcheckstubs.com/blog/w-2-form/ultimate-guide-to-w-2-form" style="font-weight: 700; font-family: &quot;Helvetica Neue&quot;, Helvetica, Arial, sans-serif; font-size: 14px; background-color: rgb(255, 255, 255);">W-2 Form: Everything You Need To Know About Employer's Responsibilities&nbsp;</a>&nbsp;
<span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> <span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">It also helps employers ensure that they are paying the correct amount of Social Security, Medicare tax, and other payroll withholdings to the IRS. The W-2 form also helps employers identify any potential errors or discrepancies in their payroll processes.
<h2 dir="ltr" style="line-height: 1.333332; margin-top: 26pt; margin-bottom: 15pt;"><span style="font-size: 17pt; font-family: Arial; color: #000000; background-color: transparent; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Benefits for Employees - Accurate Tax Filing</h2>
<span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">For employees, t<span style="font-size: 11pt; font-family: Arial; color: rgb(0, 0, 0); background-color: transparent; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">he W-2 form is essential in filing their taxes accurately<span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. <span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> <span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Without the W-2 form, it would be difficult for employees to know exactly what income has been reported to the IRS and how much tax they owe. The form also provides a way for employees to double-check that their employers are withholding the correct amount of taxes from their paychecks.
<h2 dir="ltr" style="line-height: 1.333332; margin-top: 26pt; margin-bottom: 15pt;"><span style="font-size: 17pt; font-family: Arial; color: #000000; background-color: transparent; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">How to Ensure Accuracy When Completing a W-2 Form</h2>
<span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">To ensure accuracy when completing a W-2 form, employers should review the information provided by their employees to make sure it matches what is reported on their pay stubs. They should also double-check that all of the forms are properly <span style="font-size: 11pt; font-family: Arial; color: rgb(0, 0, 0); background-color: transparent; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">filled out with no errors or omissions<span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.
<span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&nbsp;
<span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Additionally, employers should take the time to review the federal and state withholding requirements before filing a W-2 form with the IRS.
<h2 dir="ltr" style="line-height: 1.333332; margin-top: 26pt; margin-bottom: 15pt;"><span style="font-size: 17pt; font-family: Arial; color: #000000; background-color: transparent; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">What to Do if You Receive an Incorrect or Incomplete W-2 Form</h2>
<span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">If you receive an incorrect or incomplete W-2 form, it is important to contact your employer immediately. Your employer must issue a corrected version of the form and send it to both you and the IRS. In some cases, you may be entitled to additional tax refunds or credits as a result of the corrected form.
<h2 dir="ltr" style="line-height: 1.333332; margin-top: 26pt; margin-bottom: 15pt;"><span style="font-size: 17pt; font-family: Arial; color: #000000; background-color: transparent; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Final Thoughts on the Legal Benefits of the W-2 Form</h2>
&nbsp;
<span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The legal benefits of completing and filing W-2 forms are essential for employers and employees alike. It is important that employers and employees understand the tax requirements and take the time to review their forms to ensure accuracy.
<span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&nbsp;
<span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Additionally, it is important for employees to contact their employer immediately if they receive an incorrect or incomplete W-2 form so that it can be corrected and filed with the IRS in a timely manner. By taking these steps, both employers and employees can enjoy the legal benefits of filing accurate W-2 forms.
<div><span style="font-size: 11pt; font-family: Arial; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&nbsp;</div>

Stay compliant and understand your payroll liabilities by learning about the legal benefits of W-2 forms for employers and employees. Keep on reading.

Discover Legal Benefits Of W-2 Form For Employees

Legal Benefits Of W-2 Form For Employees

When filing your tax return, you would always spot a column to figure out your adjusted gross income, or more commonly known as AGI. This is a crucial step in calculating and arriving at your taxable income and tax liability for a given tax year.Knowing how to calculate AGI from W-2 form is an essential skill every taxpayer should possess. As a non-tax-professional, you could come across some misconceptions when learning how to figure out your AGI. Let’s have a look and go into detail about the concept of adjusted gross income.Additionally, we recommend you to read <a target="_blank" href="https://www.realcheckstubs.com/blog/paystubs/pay-stub-abbreviations-and-acronyms-decoding-tips" tt-mode="url">“Paystub Abbreviations and Acronyms Decoding Tips”</a> to get you familiarized with the abbreviations and acronyms you see in paycheck stubs.<h2>What is Adjusted Gross Income (AGI)?</h2><blockquote>The Internal Revenue Service defines Adjusted Gross Income (AGI) as gross income deducted with “adjustments to income.” The IRS uses AGI to determine your income tax liability for the year. </blockquote>Gross income is the sum of all the money you earned within a year including amounts such as your wage, dividends, business income, retirement distributions, capital gains, and other forms of income.Adjustments to income could include alimony payments, health savings account contributions, and student loan interest, among other items. The AGI would never be more than the total gross income on your return and more often lower.After determining your AGI, the next step would be to subtract deductions to calculate your taxable income, thus giving your tax liability. Additionally, you could use your AGI if you want to qualify for credits and deductions. The IRS also uses other forms of income metrics, including the “Modified Adjusted Gross Income (MAGI)” for specific programs and retirement accounts.To put it simply, adjusted gross income is a modification of your gross income with certain adjustments to reach a figure that would be used to calculate your tax liability. Many U.S. states use the AGI from <a href="https://www.realcheckstubs.com/blog/paystub/estimate-your-federal-tax-refund-with-the-last-pay-stub-of-the-year" target="_blank">federal returns</a> to determine how much an individual owes in state income taxes. States could also modify the AGI with state-specific deductions and credits.<h2>Does your W-2 show your AGI?</h2>IRS form W-2, also known as the&nbsp;Wage and Tax Statement Form, is a tax form used by employers to report their employees’ wages and the taxes withheld from their paycheck at the end of a tax year. Employers are required to complete a W-2 for each employee in their business or company who receives a wage, salary, or other compensation.When looking at a W-2 form, you would see both lettered and numbered boxes that an employer must fill out correctly and adequately. Numerous boxes on the W-2 Form identify a specific value related to your wages and taxes. There is no box for AGI on W-2 forms, but you could always use the information on your W-2 on how to figure out AGI.<ul><li>Box 1 contains your annual salary</li><li>Box 2 shows how much your employer withheld for taxes</li><li>Box 3 tells you your social security wages (if applicable)</li><li>Box 4 shows you how much tax an employer withheld from social security wages (if applicable)</li></ul> To get a better grasp of&nbsp; your IRS form W-2, visit&nbsp;&nbsp;<a target="_blank" href="https://www.realcheckstubs.com/blog/w-2-form/w-2-wage-and-tax-statement-form-for-small-business" tt-mode="url">“W-2 Wage and Tax Statement Form For Small Business.”</a><h2>What is included in AGI?</h2>To estimate your adjusted gross income from W-2, you need to identify your total annual income, above-the-line deductions, and, if applicable, your standard deductions or itemized deductions.As stated earlier, you could determine your total gross income using your W-2 or paystub. Gross income is the sum of all the money you earn within a year.Above-the-line deductions refer to reductions utilized by the IRS to allow you to deduct from your annual gross income to reach your adjusted gross income.If you do not itemize your deductions using Form 1040 schedule A, the IRS allows you to take the standard deduction to calculate your taxable income. The standard deduction refers to the portion of your income not subjected to tax, which could be used to decrease your tax bill. Depending on your filing status, the amount of your standard deduction would vary. Your filing status includes your age, marital status, or whether you claimed as a dependent or are disabled.Meanwhile, itemized deductions are expenses that come after your adjusted gross income. They are also called below-the-line deductions that reduce your taxable income and are computed on the IRS Schedule A with the total carried over to your Form 1040. After subtracting itemized deductions from your income, the remaining amount is your actual taxable income.<h2>How Do I Calculate AGI?</h2>If you utilize software to prepare your tax returns, it would automatically calculate your AGI once you enter the necessary information. Meanwhile, the W-2 form would help you with the needed amounts to calculate AGI. Follow the steps below: <ol><li>Begin identifying your reported salary by your employer inside Box 1 of your wages and tax statement for the year. Box 1 is labeled “Wages, Tips, Other Compensation.”</li><li>Next, add additional taxable income such as dividends, prizes, lottery, unemployment benefits, rents, etc. It could also include miscellaneous income reported on 1099 forms.</li><li>Then, sum up all adjustments to income, also known as above-the-line deductions, that you made in the last year.</li><li>Lastly, subtract the total above-the-line deductions from your final annual income. The amount you get is your adjusted gross income (AGI).</li></ol> To better understand, let’s take a look at an example. If your W-2 shows:<ul><li> Your taxable wages earned are $100,000 </li><li>and you have $500 in taxable interest, </li><li>$800 in dividends,</li><li> and an additional $1,000 in investment income,</li><li>Your total taxable income is $100,000 + $1,000 + $800 + $500 = $102,300.</li></ul> However, suppose you have:<ul><li> paid off a student loan interest of $900, </li><li>spent $700 on educator expenses, </li><li>contributed $1800 to a traditional IRA and </li><li>$10,000 to a retirement account. </li><li>Your total deductions would equal $900 + $700 + $1,800 + $10,000 = $13,400. </li></ul> Subtract that amount to the total taxable income, and you would find that your adjusted gross income is $102,300 - $13,400 = $88,900 (AGI)<h2>How to calculate AGI from paystub?</h2>If you do not have your W-2 or <a href="https://www.realcheckstubs.com/blog/w-2-form/how-can-i-get-a-copy-of-my-w2-if-i-lost-it" target="_blank">it is missing</a>, you need to calculate AGI from your paystub. Worry not, as figuring out your AGI using your paystub is still possible. However, it is still best to wait until you have received your wage and tax statement form to file your tax return.You could use<a href="https://www.realcheckstubs.com/blog/paystubs/what-is-a-pay-stub-a-guide-to-understanding-your-pay-stub" target="_blank"> your final paystub</a> for the year to calculate your adjusted gross income for the year. You would also need records of any other income you received during the year and records of any deductions you want to claim.Here are the steps to estimate your AGI using your paystub.<ol><li>On your final paystub, <a href="https://www.realcheckstubs.com/blog/paystub-generator/paystub-generator-with-year-to-date-ytd" target="_blank">locate the total YTD earnings amount</a>, usually listed under “Earnings.” Total YTD earnings could include regular wage, bonuses, and other sources of income your job provides.</li><li>Search for any pretax deductions on your paystub. Common deductions include health insurance, your 401k, and public transportation costs.</li><li>Take away the amount of the before-tax deductions from your total YTD earnings.</li><li>Add other sources of income (if any) to the year-to-date paystub amount. This could include alimony or taxable interest, unemployment, or any income you gain from renting property or working as an independent contractor.</li><li>Total the amount of any deductions you could claim. This could include paid student loan interest, tuition (if you attended school), educator expenses, and other deductions.</li><li>Subtract the total amount of your deductions from your total income to reach your adjusted gross income for the year.</li></ol><h2>Is AGI after standard deduction?</h2>A standard tax deduction is a certain amount, which decreases your taxable income on tax returns, effectively reducing your tax liability. A taxpayer could choose either a standard deduction or itemized deduction, which would reduce the amount they pay for taxes.So, is AGI after standard deduction? The answer is no. Your AGI is determined before you take the standard deduction or itemized deductions, which you need to report in later sections of the return.<h2>What reduces your adjusted gross income?</h2>The IRS gives many opportunities for individuals to take deductions that could reduce the amount of income taxed to determine your AGI on W-2. TheseThese deductions, referred to as “adjustments to income,” are specific expenses based on certain activities that allow you to reduce your total income to reach AGI effectively.The ability to give deductions allows the IRS to extend tax advantages to those in poverty, empower students and educators, and incentivize charitable donations, among other things. These reductions are also referred to as “above-the-line” deductions.Claiming deductions save you hundreds or even thousands on your tax bill, especially for business owners having close ties with education or charity or pay a huge interest in a given year.<h2>Above The Line Deductions to Estimate AGI</h2>Tax laws change every year, but here are some examples of above-the-line deductions based on IRS schedule 1.<ul><li>Educator expenses</li><li>Certain business expenses of reservists, performing artists, and fee-based government officials.</li><li>Health savings account contributions</li><li>Moving expenses for Armed Forces members</li><li>A portion of self-employment tax</li><li>Self-Employed SEP, SIMPLE, and qualified plans</li><li>Self-employed health insurance deduction</li><li>Penalty on early withdrawal of savings</li><li>Alimony paid</li><li>IRA contributions</li><li>Interest paid on student loans</li><li>Educational tuition and fees&nbsp;</li></ul><h2>Modified Adjusted Gross Income (MAGI)</h2>Throughout your tax return, you would notice that the IRS also uses the term “modified adjusted gross income,” or more commonly known as MAGI. Your MAGI is what you get after your AGI increases or decreases by certain amounts unique to specific deductions. This figure begins with your AGI plus particular exclusions such as foreign earned income exclusion and deductions such as your student loan interest or tuition fees.The MAGI is used to determine how much (if applicable) you could contribute to a Roth IRA, an individual retirement account offering tax-free growth and tax-free withdrawals in retirement, in a given year. You could also use your modified adjusted gross income if you want to apply for Marketplace health insurance under the Affordable Care Act.To calculate your Modified Adjusted Gross Income, you would need to include your AGI and put back the following adjustments:<ul><li>IRA deduction</li><li>Student loan interest deduction</li><li>Domestic production activities deduction</li><li>Foreign earned income exclusion</li><li>Foreign housing exclusion or deduction</li><li>Exclusion of qualified savings bond interest</li><li>Exclusion of employer-provided adoption benefits</li></ul>Anyway, your MAGI is one of the essential figures that you could enter on your federal income tax return. Among other things, your modified adjusted gross income:<ul><li>Establishes your suitability for income-based health insurance assistance or Medicaid coverage;</li><li>Decreases your taxable income to consider your retirement account contributions;</li><li>Takes in your eligibility for benefits such as the child tax credit and student loan interest.</li></ul><h2>Why is Adjusted Gross Income Important?</h2>The advantage of calculating your adjusted gross income before choosing between standard or itemized deductions is that even if you select the standard deduction, you could still get subsidiaries for participating in education, self-employment, or health savings account contributions. This incentivizes specific activities, even if you choose standard deduction over itemizing.Beyond tax benefits, your adjusted gross income is used throughout IRS forms and tax codes for calculations. Estimating your AGI allows someone to know their tax liability without getting very specific.As with most of the tax code, ensuring that you have a good understanding of basic definitions goes a long way in helping you grasp more significant concepts such as calculating AGI from W-2s.<a target="_blank" href="https://www.realcheckstubs.com/" tt-mode="url">Visit our website, Real Check Stubs,</a> and check out other must-read articles that would help you become tax savvy.

The Internal Revenue Service defines Adjusted Gross Income (AGI) as gross income deducted with 'adjustments to income.' The IRS uses AGI to determine your income tax liability for the year.

What is Adjusted Gross Income (AGI)?

IRS form W-2, also known as the Wage and Tax Statement Form, is a tax form used by employers to report their employees’ wages and the taxes withheld from their paycheck at the end of a tax year. Employers are required to complete a W-2 for each employee in their business or company who receives a wage, salary, or other compensation.

Does your W-2 show your AGI?

To estimate your adjusted gross income from W-2, you need to identify your total annual income, above-the-line deductions, and, if applicable, your standard deductions or itemized deductions.

What is included in AGI?

As a taxpayer, you should know how to calculate AGI from W-2 forms or paystubs to make taxpaying as easy and as fulfilling as possible.

How to Find Adjusted Gross Income from W-2 | AGI Calculator

How to Calculate AGI (Adjusted Gross Income) from W-2

IRS forms W-2 and W-4 both have to do with employers and their employees. However, the difference between W-2 and W-4 forms lies in how they function and who should fill out and complete the documents.This article explains the W-4 form vs W-2, distinguishing one from another. It covers their differences in terms of purpose, who completes them, when they are submitted or filed, and how to fill them out.Tax form W-2 records all earned wages by an employee, as well as taxes withheld by the employer from their paychecks throughout the year. Meanwhile, tax form W-4 tells the employer how much to withhold from each employee's paycheck.You can find both electronic copies of the W-2 and W-4 at IRS.gov.<h2>W-2 vs W-4: Basic Overview</h2>Here are some answers to questions about the basic differences between W-2 and W-4 forms. <h3>What is the Purpose of Each Form?</h3><h4>Form W-2: Wage and Tax Statement</h4>Also known as the Wage and Tax Statement form, this year-end form reports an employee's gross earnings, as well as their bonuses and tips, deductions for income, Medicare, and Social Security taxes. Form W-2 includes any additional withholdings, including certain childcare account and retirement plan contributions and other withheld taxes from the employee's paychecks throughout a tax year.Meanwhile, employers use the W-2 tax form to <a href="https://www.realcheckstubs.com/blog/paystubs/what-is-fica-on-my-paystub" target="_blank">report FICA taxes to the Social Security Administration (SSA)</a> by the end of February. The SSA uses the tax information provided on the forms to determine the Social Security benefits entitled to each employee.The IRS also uses the wage and tax statement form to monitor an employee’s tax liability, making it a valid proof of income for different applications such as federal financial aid for college, SSN Benefits, and court proceedings.Visit our website, <a target="_blank" href="https://www.realcheckstubs.com/" tt-mode="url">Real Check Stubs</a>, and read <a target="_blank" href="https://www.realcheckstubs.com/blog/w-2-form/w-2-wage-and-tax-statement-form-for-small-business" tt-mode="url">W-2 Wage and Tax Statement Form for Small Business</a>&nbsp;for an in-depth look into what a W-2 form is.<h4>Form W-4: Employee's Withholding Certificate</h4>The Employee's Withholding Allowance Certificate, more commonly known as Form W-4, indicates how much income tax an employer should withhold from an employee's paycheck and submit to the IRS. All employees must fill out a W-4 as part of their new-hire document on the first day of their employment or before their first paycheck. They should also update the form in case their personal or financial situation changes.Employers use W-4 to calculate the correct amount of federal tax to withhold from each employee on their payroll. The withheld amount depends on various factors, including the number of dependents, the employee's marital status, and personal withholding preference.<h3>Who Fills Out and Completes the Form?</h3><h4>Who Fills Form W-2?</h4>For each employee, an employer must fill out and submit a W-2 to <a href="https://www.irs.gov/forms-pubs/about-form-w-2" target="_blank">the Internal Revenue Services</a> at the end of every year. Even if the employer did not collect any income, Medicare, or Social Security from their employees, The IRS still requires employers to submit a W-2 for each employee paid $600 or more.<h4>Who Fills&nbsp;Form W-4?</h4>All employees on a company's payroll must complete a W-4 form within the first month of their job. They should provide their personal information and withholding allowances on the W-4 form. Meanwhile, employers also fill out part of the form if they use the document to fulfill state new-hire reporting requirements.<h3>When Is It Submitted?</h3><h4>When is Form W-2 submitted?</h4>As said earlier, employers need to complete and file form W-2 at the end of each year. Employees should also receive a copy of the W-2 by the 31st of January from their employers to report their withholdings for the previous tax year.<h4>When is Form W-4 submitted?</h4>Generally, employees need to submit Form W-4 once at the beginning of their new job or at least before their first paycheck. However, employees would need to fill out a new form any time their personal or financial situation or information changes, and they need more or less withheld from each paycheck.<h2>W-2 vs W-4: How to Fill out Forms</h2>Although the IRS requires employers and business owners to complete and submit W-2 forms, some assistance might still be needed to fill out W-4 forms. Here are instructions for how to complete both forms.<h3>Form W-2 Instructions</h3>For every employee who receives at least $600 in wages from a business, employers must complete and file the Wage and Tax Statement, Form W-2, to the IRS. Although, the employer would have had to withhold income tax if an employee did not claim an exemption from withholding on their W-4, or they only claimed one allowance. This is still the case even if the employer did not withhold any income, Social Security, or Medicare Tax.W-2 requires <a href="https://www.realcheckstubs.com/blog/paystubs/where-to-find-fein-number-on-pay-stub" target="_blank">the business' employer identification number (EIN) </a>and the employee's Social Security number, as well as their addresses. Additionally, the form also requires employers to disclose their employee's total compensation amount for the year. This includes:<ul><li> wages, </li><li>tips, </li><li>federal income tax, </li><li>withheld Medicare and </li><li>Social Security tax amounts.</li></ul> Employers must also send a copy of the W-2 form to their employees so that they can file their annual tax returns. When preparing a federal tax return, the employee subtracts the reported withheld amount by the employer from their tax bill. The declared withholding amount determines whether the employee would expect to make an additional payment or a refund.Additionally, employers would need to provide a copy of the W-2 form to their state government disclosing how much state income tax employers withheld from every employee. This is in addition to how much employers earn.After FilingWhat a W-2 contains depends on the business and the employees. For example, retirement plans and dependent care benefits may not apply to every employee, which means they may not apply to each W-2 an employer completes. As said earlier, the IRS provides detailed instructions on how to fill out each box within the W-2 form correctly.After completing W-2 forms for businesses, employers need to file them with the Social Security Administration and distribute them to their employees. Employers should also file and provide W-2s for every employee that worked during that tax year, even if they do not work for the business anymore.W-2s are only for employees and not for contractors. Meanwhile, for 1099 contractors, employers should file <a href="https://www.realcheckstubs.com/blog/tax/what-is-form-1099-nec-and-who-needs-to-file" target="_blank">the 1099-NEC form, formerly known as the 1099-MISC</a>, until the tax year 2023. Like W-2 forms, the 1099 NEC and MISC form reports how much an employer compensated the contractor and how much tax they withheld for that contractor. Employers need to file the forms before the end of January and distribute them to the independent contractors that executed their job during the tax year.If you lost your W-2 form read <a target="_blank" href="https://www.realcheckstubs.com/blog/w-2-form/how-can-i-get-a-copy-of-my-w2-if-i-lost-it" tt-mode="url">“How Can I Get a Copy of My W-2 If I Lost It”</a>?<h3>Form W-4 Instructions</h3>Ideally, employees fill out the IRS form W-4 on the first day of their employment or at least before their first paycheck. W-4 tells employers how much tax to withhold from each employee's paycheck when running payroll. The IRS website provides employers blank W-4 forms.The Employee's Withholding Allowance Certificate requires employees to provide their personal information, including: <ul><li>Social Security number, </li><li>home address, </li><li>and marital status, including single, married, or married but separately filing taxes.</li></ul> Employers cannot tell their employees what to put on their W-4 forms. However, they could offer resources to assist them in finding out their correct withholding. Once the employees complete their W-4, they should return it to their employers, who then input the information into their payroll system. This ensures the correct amount of tax is withheld from each paycheck.Form W-4 calls for employees to specify how many allowances they would claim, as more allowances mean lower tax withholding. Some items that employees could claim as allowances include things such as itemized personal deductions, having more than one job, or having a qualifying dependent such as a child.Filing AdjustmentsEmployees need to report the total number of allowances they claim on their W-4 and any additional amount they would want to withhold from each paycheck. Employees might also like to increase their withholdings if they happen to have two or more jobs at a time, if they earn income from sources not subject to withholding, or if their spouse also has a job.Employees could change their W-4s anytime, which means employers should update accordingly and adjust the payroll data. Without correctly reporting their allowances or making an adjustment, employees could owe additional taxes or interest and even penalties when filing their annual tax returns.Moreover, employees could decrease the withholding amount if they qualify for income tax credits, such as credit for children or other dependents or deductions. In most cases, employees should pay state taxes on top of federal taxes, as well as submit specific withholding forms depending on their state.<h2>5 Tips for Filing IRS Forms W-2 and W-4 for Small Businesses</h2>Follow these tips to help you create a more simplified W-2 and W-4 filing, ensuring that you meet the requirements for both forms.<h3>1. Do not wait until the last minute</h3>Complete the forms as soon as you can to avoid missed deadlines and errors caused by delays. Missed W-2 deadlines could trigger a late penalty from the IRS. Have your employees fill out their W-4s on or before the first day of their employment and enter the essential details into your payroll system as quickly as you can. Start working on your W-2 forms at the start of January to meet the deadline before the end of the month.<h3>2. Consult or hire a professional</h3>The IRS website provides detailed instructions for both W-2 and W-4 forms. However, they could still cause confusion. Consider consulting or even hiring a professional such as a business accountant or tax advisor with in-depth experience with IRS tax forms. They can answer your questions and help you complete filing them out. Additionally, they could even assist you in creating a streamlined process of filing.<h3>3. Use electronic filing, if you can</h3>When it comes to Form W-2s, the IRS recommends that you file them electronically for a faster and easier process. It also saves you from printing on paper, reducing waste. If possible, have your employees fill out their W-4s electronically for easier and more organized recording and storing. You would also have quick access to them if needed.<h3>4. Take advantage of software</h3>One of the easiest ways of streamlining your W-2 and W-4 processes is by using payroll or HR software capable of handling and filing tax forms. Depending on the system you choose, you could fill out forms, file forms on the platform, record, and access them later for review.<h3>5. Take caution</h3>As with all tasks related to your business, remember to take extra caution when filling out W-2s and assist your employees in completing their W-4 forms. Delays or errors on filing and submission could potentially affect your business negatively, as well as your employees. So, spend extra time and care now to save you from troubles and save you money in the long run.<h2>Conclusion</h2>After reading the article W-2, you should know by now the difference between W-2 and W-4. Remember, the W-2 records and reports how much wage an employee earns and the tax withheld from their paycheck throughout a tax year. Meanwhile, employers use tax form W-4 to determine how much money to withhold from each employee's paycheck. To simplify further, W-2 is the record, and W-4 is the plan.<a target="_blank" href="https://www.realcheckstubs.com/generateStubs" tt-mode="url">Visit our website, Real Check Stubs, and check out our professional check stub builder </a>to help you create a streamline your payroll and other must-read articles.

For each employee, an employer must fill out and submit a W-2 to the Internal Revenue Services at the end of every year. Even if the employer did not collect any income, Medicare, or Social Security from their employees, The IRS still requires employers to submit a W-2 for each employee paid $600 or more.

Who Fills Form W-2?

All employees on a company's payroll must complete a W-4 form within the first month of their job. They should provide their personal information and withholding allowances on the W-4 form. Meanwhile, employers also fill out part of the form if they use the document to fulfill state new-hire reporting requirements.

Who Fills Form W-4?

As said earlier, employers need to complete and file form W-2 at the end of each year. Employees should also receive a copy of the W-2 by the 31st of January from their employers to report their withholdings for the previous tax year.

When is Form W-2 submitted?

Generally, employees need to submit Form W-4 once at the beginning of their new job or at least before their first paycheck. However, employees would need to fill out a new form any time their personal or financial situation or information changes, and they need more or less withheld from each paycheck.

When is Form W-4 submitted?

Explore basic the differences between IRS forms W-2 and W-4, which are used to record employee wages and taxes withheld by employers.

the Difference Between W-2 vs W-4 Form | Real Check Stubs

W-2 vs. W-4: What's the Difference and How to File?

As the deadline for the annual filing of Form W-2 comes near, all employees need to prepare their tax returns before the income tax due date. 
You should be aware of where your tax documents are stored and if you have received them from your employer.
When filling out Form 1040 (Individual Income Tax Return Form), you need a <a href="https://www.realcheckstubs.com/blog/w-2-form/ultimate-guide-to-w-2-form" target="_blank" rel="noopener">Form W-2 (Wage and Tax Statement Form)</a>. It would come from your employer as they file for income tax and withheld tax reports to the Internal Revenue Service (IRS). 
Your employer sends copies to the government institution as well as to their employees.
There could be times when a form goes missing, and you should know how to get a replacement W-2 statement.
<img src="https://www.realcheckstubs.com/storage/posts/get-copy-of-w2-form.webp" alt="How to Get a Copy of W2 Form ?" width="640" height="350" />
A lost W-2 could be troublesome when filing tax returns and could even cause you to file late, which would result in penalties.
If you&rsquo;re dealing with a lost or misplaced form, you&rsquo;re probably wondering about&nbsp;how to get a copy of W2 in due time. There are a few things you can do to meet IRS requirements and avoid potential penalties or fees in the future.
Here are some things you need for you to know what to do if you lost your W-2 form.
<h2>What is a W2 Form?</h2>
The IRS&rsquo; &nbsp;<a href="https://www.realcheckstubs.com/blog/w-2-form/w-2-wage-and-tax-statement-form-for-small-business">W-2 wage and tax statement form</a>&nbsp;or Form W-2 records and reports an employee&rsquo;s income received from their employer. It also includes taxes withheld from the employees&rsquo; paychecks throughout a tax year.
If you work for a company and receive a salary, wage, or other compensation equal to or more than $600,&nbsp;your employer should complete a Form W-2 and send it to the IRS.&nbsp;You should also receive a copy of the tax statement form, which you would then use to complete your tax returns when filing Form 1040.
The IRS requires your employer to send out W-2 tax form copies on or before&nbsp;January 31 of every year. This gives you around two months to prepare tax returns before the income tax due date on April 15. Information on the tax form would determine if you would receive a refund or a bill.
Along with Form W-3, employers also use the W-2 form to&nbsp;<a href="https://www.realcheckstubs.com/blog/paystubs/what-is-fica-on-my-paystub">report FICA taxes&nbsp;</a>to the Social Security Administration (SSA) by the end of February. The administration uses the tax information on the submitted forms to calculate the Social Security benefits entitled to each employee.
The IRS also uses the wage and tax statement form to monitor your tax liability. This makes it a valid proof of income for various applications such as SSN Benefits, court proceedings, and federal financial aid for college.
<a href="https://www.realcheckstubs.com/blog/w-2-form/legal-benefits-of-w-2-form-for-employees">Discover Legal Benefits Of W-2 Form For Employees&nbsp;</a>
&nbsp;
<h2>Your W-2 is Missing. Now What?</h2>
There is no need to panic, as you do not have the only copy, and&nbsp;there are various ways you could obtain another copy.&nbsp;However, before correcting the mistake, first, identify what went wrong. It could be your own doing if you simply lost your mailed paper copy. 
It could be your employer&rsquo;s fault for forgetting or refusing to send you a copy. It could also be that you did not keep records when filing for the past year. Ask yourself what happened before and after receiving your copy of the W-2 tax form.
The truth is that documents can get misplaced or misfiled. You may end up finding your copy eventually but the thing is that you have a deadline.
That&rsquo;s why we need to talk about how to get a copy of W2. This is possible in several ways. Keep in mind that the sooner you trigger the procedure, the more time you&rsquo;ll have to request an additional copy and make sure it&rsquo;s available in due time.&nbsp;
Note: If you are looking for a W2 copy for the current fiscal year, your employer is the only entity that can create one. Taxation authorities still don&rsquo;t have it on record with them. That&rsquo;s why you will need to turn to your company&rsquo;s HR or accounting department. Old W2 forms can be requested in other ways, as well.
&nbsp;
<h2>What to Do If You Lost Your W-2</h2>
If you lost your W-2, the first thing you can do is simply contact and ask your employer for a copy. You can also download an electronic copy by logging into your payroll account if the employer uploads them into cloud storage. If you are not sure how to get a replacement W-2 from the online payroll system,&nbsp;verify with your employer or the company&rsquo;s human resources department.
If you have wages and taxes withheld by an employer but lack the W-2 statement, a lost W-2 replacement could be as simple as requesting a duplicate from your employer. However, if the employer refuses or cannot produce a replicate for some reason,&nbsp;you could also request a wage and tax statement form from the IRS.
Legally, the IRS is obliged to maintain W2 records for a period of 10 years. As already mentioned, there could be one slight complication. Processing for the current fiscal year may not be completed until the earnings are reported.&nbsp;
That&rsquo;s why your safest bet when looking for copies of W2 is requesting the information from your employer.
If they fail or refuse to cooperate, you could have to address a slightly more complex situation. An employer is required by federal law to produce and deliver a W-2 copy to each employee. When it comes to a second copy, however, they have no such obligation.
The easiest way to work around this situation is to suggest covering any expenses that are linked to the issuing of the second W-2 copy.
In some instances, you may also <a href="https://www.irs.gov/pub/irs-utl/oc-havent-received-your-w-2.pdf">employ the assistance of the IRS</a>. It&rsquo;s possible for the taxation authorities to contact an employer on your behalf and settle the situation within the specified timeframe,
&nbsp;
<h2>How to Get a Copy of My W2 If I Never Received It</h2>
In some instances, a lost W-2 may not be entirely your fault. You may not have forgotten where you placed the W-2 form, but you just never received it in the first place. This could be due to the employer forgetting or neglecting their duty of sending copies. However, make sure to cover all your bases before accusing your employer or even the government of any wrongdoing.
Check if the employer sent the wage and tax form via mail or if they delivered it online.&nbsp;Verify with your employer which method they used to send it. Additionally, make sure that the form they sent went to the correct address on the day it was supposed to be sent. A wrong address can put you at risk of fraudulent returns or even identity theft.
The IRS does not need to know why and how you lost your form W-2, as the responsibility of securing it and filing tax returns on time falls upon the employee. However, they can still help you to get a copy if necessary.
If you find that your employer simply did not send your W-2, ask them about the situation and request a copy immediately. If they refuse to produce and give you a copy after the mandated deadline by the IRS,&nbsp;you can file a complaint with the IRS, which they need to answer and deal with.
There are also times when the business goes bankrupt, and they simply never sent your tax form even though you fit the requirements to receive a copy. If that is the case, you could always request a copy of your lost W-2 directly from the IRS by also using a form. Never underestimate the importance of a W-2 tax form if you want to have a smooth record with the government.
<a href="https://www.irs.gov/faqs/irs-procedures/copies-transcripts/transcript-or-copy-of-form-w-2">Transcript or Copy of Form W-2</a>
<h2>How to Get a Lost W-2 from Previous Employer</h2>
Now you may ask what to do if you lost your W-2 from previous years and you need to file for a past tax year. First, let us clarify that keeping tax records is your responsibility, and losing them or simply not storing them is your mistake. However, do not fret and dwell on the past, as there are simple remedies you can take to solve the problem.
As earlier discussed, you have the option of contacting your employer first regarding your lost W-2. If you do not longer have means of reaching your old employer, if they went bankrupt, or if a natural disaster destroyed their records,&nbsp;you could always request a copy of the previous W-2s from the IRS.
Even when you file for back taxes, the IRS could provide you with tax documents for any year you worked, provided that your employer filed the correct tax information each year. When you do request a copy of your tax information,&nbsp;the IRS requires you to use a &ldquo;Request for Transcript of Tax Return&rdquo; form or simply known as form 4506-T.
Form 4506-T is a form you use to request a form that includes your information from a requested year. After receiving your previously lost W-2 for that year, you may now backfile that tax return and do right by the IRS. Form 4506-T requires you to provide information to verify your identity, such as name, address, social security number, employment dates, and an estimate of the income you earned based on a final paystub.
You may be interested:&nbsp;<a href="https://www.realcheckstubs.com/blog/paystubs/how-to-get-paystubs-from-previous-employer">Getting Paytsubs from Previous Employer</a>&nbsp;
<h2>Filing for an Extension</h2>
You can still request an extension from the IRS. The agency follows a rigorous process, but it could help you under certain circumstances, such as a lost W-2.
When filing for an extension, you need to use Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return).&nbsp;According to the IRS, Form 4868 would automatically give you an extra six months of preparation to fill out and file your tax return.
Please take note that when you request a Form W-2 or any other form, the IRS would require you to provide them estimates of how much you earned from payments in a year and how much tax your employer withheld. Luckily, you can use Real Check Stubs to create a final paystub with accurate estimates for the amounts the IRS needs.
<h2>Can I File Taxes without a Copy of My W2</h2>
Here&rsquo;s an important clarification &ndash; you can still do your tax filing if you are missing a copy of your W2.
That&rsquo;s something to keep in mind if you do your best but are still incapable of obtaining the missing W2 copy in time for filing.
Whenever you have to do tax filing when you&rsquo;re missing the W-2 form from your employer, you&rsquo;ll need to use <a href="https://www.irs.gov/forms-pubs/about-form-4852#:~:text=Form%204852%20serves%20as%20a,2%20or%20Form%201099%2DR.">Form 4852</a> &ndash; a substitute for W2 that has to be completed by the taxpayer themselves.
According to IRS information. Form 4852 can be used in two scenarios:
<ul>
<li style="font-weight: 400;" aria-level="1">Whenever an employer does not provide an employee with their W-2 in due time</li>
<li style="font-weight: 400;" aria-level="1">In instances whenever the employer has provided the employee with an incorrect W-2</li>
</ul>
The form is available on the IRS website &ndash; you can download it from there and move on to complete your filing for the respective fiscal year. This is an opportunity that can be employed as an alternative to filing for an extension through Form 4868.
<h2>Conclusion: Losing My W2 Is Not the End of the Worl</h2>
A lost W-2 could cause trouble for a hardworking employee. Luckily, there are plenty of options you can perform to obtain another copy.&nbsp;
Depending on the circumstance, you could ask your employer for a copy or even the IRS. However, make sure to cover every possibility before accusing others. Do not put yourself in hot water over a missing W-2. The best way is to never lose the wage and tax form in the first place.
Have a secure and safe place to store all important documents so you are always prepared for any situation. You could also save them into cloud storage for added protection and request copies generated from&nbsp;<a href="https://www.realcheckstubs.com/generateStubs">online check stub makers such as Real Check Stubs</a>.
&nbsp;

If you lost your W-2, the first thing you can do is simply contact and ask your employer for a copy. You can also download an electronic copy by logging into your payroll account if the employer uploads them into cloud storage. If you are not sure how to get a replacement W-2 from the online payroll system, verify with your employer or the company’s human resources department.

What to Do If You Lost Your W-2

You may not have forgotten where you placed the W-2 form, but you just never received it in the first place. This could be due to the employer forgetting or neglecting their duty of sending copies. However, make sure to cover all your bases before accusing your employer or even the government of any wrongdoing.

How to Get a Copy of My W2 If I Never Received It?

If you no longer have means of reaching your old employer, if they went bankrupt, or if a natural disaster destroyed their records, you could always request a copy of the previous W-2s from the IRS.

How to Get a Lost W-2 from Previous Employer?

You can still do your tax filing if you are missing a copy of your W2. Whenever you have to do tax filing when you’re missing the W-2 form from your employer, you’ll need to use Form 4852 – a substitute for W2 that has to be completed by the taxpayer themselves.

Can I File Taxes without a Copy of My W2?

A lost W-2 could cause trouble when filing tax returns, so knowing how to get a replacement W-2 statement would help you through such times.

How to Get a Copy of W2 Form Online?

How Can I Get a Copy of My W2 If I Lost It?

One factor that every small business owner should not overlook and treat as important as others is the wage and tax statement form, also known as the W-2 form. Each year by January 31, employers must send to employees these forms to file their income tax returns. W-2 tax forms demand attention when filing. Failure to submit on time and improperly entered information could lead to fines. This article tackles everything you need to know when filing a W-2 form.<h2>What is Form W-2?</h2>Form W-2, also known as the Wage and Tax Statement, is an Internal Revenue Service (IRS) tax form used by employers to report wages paid to their employees and the taxes withheld from them at the end of the year. As part of their responsibilities, <a href="https://www.realcheckstubs.com/blog/w-2-form/ultimate-guide-to-w-2-form" target="_blank">employers must complete a Form W-2</a> for every employee in their company who receives a salary, wage, or other compensation. The W-2 tax form includes salary and wage information for employees as well as withheld taxes such as federal, state, and other taxes. Employees use this information to complete their tax returns when filling up Form 1040. <a href="https://www.irs.gov/forms-pubs/about-form-w-2" target="_blank">The IRS requires</a> employers to mail out the W-2 tax form on or before January 31. This allows taxpayers to prepare their tax returns before the income tax due date on April 15. This means an allowance of around two months for preparation. The withholding amount entered into the W-2 form is deducted from a W-2 employee’s tax return for a tax year. The IRS could also issue refunds if an employer withholds more income than necessary. Employers also use the wage and tax statement form to <a href="https://www.realcheckstubs.com/blog/paystubs/what-is-fica-on-my-paystub" target="_blank">report FICA taxes</a> to the Social Security Administration. Along with Form W-3, the employer files the W-2 form by the end of February with the Social Security Administration (SSA), which then reports to the IRS. The SSA uses the information on the form to calculate the Social Security benefits entitled to each worker. The IRS also uses the tax form to monitor an employee’s tax liability. This makes it a formal proof of income for the SSA, court proceedings, and applications for federal financial aid for college. <img src="https://www.realcheckstubs.com/storage/posts/w2 tax form check stub maker.jpeg" alt="What is Form W-2?" title="What is Form W-2?"> <h2>Who Files Form W-2s?</h2>As an employer who employs people in your business or company, you most likely would file the wage and tax form known commonly as the W-2 form. It is your responsibility to file and give each person receiving a salary, wage, or other compensation from you. However, this does not include independent contractors or self-employed workers, who need to use Form 1099 to report income statements. According to the IRS, you need to give a W-2 form to any employee who earns more than $600, including non-cash payments. You would need to file the W-2 tax form before January 31 each year so that your employees have enough time to file their income taxes before the deadline. To file for a wage and tax statement form, you would have to account for everything you paid to an employee, whether part-time, hourly, or salaried, or even if he or she worked for a short time. The form is still required even if the W-2 employee only worked for a day but earned $600 or more. The wage and tax form also requires you to account for any Medicare, Social Security, and taxes withheld from an employee’s paycheck. Additionally, if you pay a family member working under your business or company and make $600 or more, you would need to submit a Form W-2.<a href="https://www.realcheckstubs.com/blog/w-2-form/legal-benefits-of-w-2-form-for-employees">Discover Legal Benefits Of W-2 Form For Both Employers &amp; Employees</a> <h2>How To Complete The Lettered Boxes in W-2 Form?</h2>When looking at a W-2 form, you would see both lettered and numbered boxes that you, as an employer, must fill out correctly and adequately. <h3>Boxes A Through F</h3> The lettered boxes on a wage and tax form include the employer and employee’s basic information. A. Employee’s Social Security NumberB.<a href="https://www.realcheckstubs.com/blog/paystubs/employee-id-number-on-check-stub" target="_blank"> Employer’s Identification Number (EIN)</a>C. Employer’s Legal AddressD. Control Number (if applicable/not required)E. Employee’s Name appearing on their Social Security Number (SSN) cardF. Employee’s Address <h3>Numbered Boxes 1 Through 10</h3> <ul><ol><li>Box 1 shows the employee’s total taxable income, including salary, wages, tips, and bonuses in the tax form (if any).</li><li>Box 2 details how much federal income tax is withheld from a W-2 employee’s paycheck.</li><li>Box 3 shows the total earnings subject to Social Security Tax.</li><li>Box 4 shows the total amount of Social Security tax the employer withholds for the year.</li><li>Box 5 describes how much of the worker’s pay is subject to Medicare tax.</li><li>Box 6 details the amount of Medicare tax withheld for the year.</li><li>Box 7 shows the amount of tips a W-2 employee reports to their employer.</li><li>Box 8 shows how much tip an employer allocated for their employee.</li><li>Box 9 is for the 16-digit verification code needed to be entered when filing electronically. However, it reflects a now-defunct tax benefit, so not entering the code would not become a problem.</li><li>Box 10 reports the total amount an employer pays to an employee towards dependent care benefits (if applicable).</li></ol></ul> <h3>Numbered Boxes 11 through 14</h3> <ol start="11"><li>Box 11 shows the amount of deferred compensation an employee receives from an employer through a Non-Qualified (Taxable) Deferred Compensation Program.</li><li>Box 12 details all other types of compensation or reduction that have not been included but need to be included from an employee’s taxable income. Each amount corresponds to one of 31 different codes (A through FF), which include, for example, payments to a 401(k) plan.</li><li>Box 13 of the tax statement form contains three sub boxes an employer chooses to report payments not subject to federal income tax withholding. The first option includes a statutory employee or independent contractor considered as an employee for tax withholding purposes. The second sub box shows if the employee participates in an employer-sponsored retirement plan. Lastly, the third option shows if an employee receives sick pay under an insurance policy.</li><li>Box 14 has the same function as box 12, allowing an employer to report other tax-related information that might not fit into other sections of the W-2 tax form. This includes union dues and state disability insurance taxes, among others.</li></ol> <h3>Numbered Boxes 15 Through 20</h3> The last six boxes on the wage and tax form report information related to applicable state and local taxes. They include the amount of an employee’s pay subject to such taxes and the amount withheld from the paycheck. <ol start="15"><li>Box 15 shows an employer’s state tax ID number and the state where the business mainly operates.</li><li>Box 16 details the amount of an employee’s taxable state wages.</li><li>Box 17 shows how much state wages an employer already withheld for the year.</li><li>Box 18 shows applicable local taxes.</li><li>Box 19 details how much local tax an employer already withheld for the year.</li><li>Box 20 provides the name of the locality where the employer withholds the taxes reported above.</li></ol><img src="https://www.realcheckstubs.com/storage/posts/w2 tax statement wages.jpeg" alt="How to fill w-2 form?" title="How to fill w-2 form?"> <h2>Filing Requirements</h2>As discussed earlier, employers need to complete and file the W-2 form and mail them to their employees by January 31 of each year. Employers filing the wage and tax form electronically to the Social Security Administration also have until the same deadline. The form requires employers to make six copies: Copy A – The employer completes this copy using red ink, making it the most distinct, and files it, along with W-3, to the Social Security Administration. Form W-3, which the employer must sign, summarizes all accomplished W-2 forms. Copy B – Copy B reports federal income taxes, which the employer sends to the employee, who then files with their individual tax returns. Copy C – The W-2 employee receives Copy C for purposes of record keeping. Copy D – The employer retains Copy D for purposes of record keeping. Copy 1 – Copy 1 goes to the applicable local governing body with the employer’s state or local income tax returns (if any). Copy 2 – Copy 2 also goes to the applicable local governing body, but with the employee’s state or local income tax returns (if any). The IRS requires employers to send W-2 tax form copies B, C, 1, and 2 to their employees by January 31 of the year, immediately succeeding the year which the W-2 form reflects. This gives W-2 employees approximately two months to prepare their income tax statement form due on April 15. Along with W-3, the employer must file the wage and tax form with the Social Security Administration by the end of February.<h2>Importance of Tax Withholding</h2>As the employer, you withhold amounts from your employees’ paychecks for federal income taxes. Those amounts are then reported and remitted to the Internal Revenue Service (IRS) throughout the year using the W-2 form. The IRS requires everyone to file an income tax statement form and make periodic payments in a year. For W-2 employees, when preparing federal returns and calculating the tax for the year, subtract from your tax bill the withheld amounts reported on the W-2 tax form. After doing so, you would know whether you would need to make an additional tax payment or receive a refund. This is also the case when filing state income returns. Perform the same calculations for the amount withheld to pay state income taxes.<h2>Verifying Name and Social Security Number</h2>The W-2 tax form’s identifying section essentially functions as a tracking feature. If the employee’s income reported on their taxes does not match the information provided in their W-2 form, the IRS would want to know why. The IRS would match the employer’s corporate tax return with the reported payment amounts to account for accuracy. Additionally, since the IRS receives a copy of each employee’s wage and tax statement form, it knows whether an employee owes tax. The agency could also contact the W-2 employee if they fail to file for a tax return. The employer should check to see if the worker’s name and Social Security number are accurate.<h2>Penalties for Late Filing of W-2 Form for Small Businesses</h2>Late submissions of W-2 forms or wrong information reported means penalties for employers. That is why they need to <a href="https://www.realcheckstubs.com/blog/w-2-form/ultimate-guide-to-w-2-form" target="_blank">file W-2s to the SSA and send them to their employees before the deadline</a>. The penalties could range depending on how late an employer submits the W-2 tax forms. If an employer fails to file a W-2 employee’s wage and tax form on time, the IRS could impose a penalty of $50 per W-2 if the employer files the correct form within 30 days of the deadline. The maximum penalty is $187,500 for small businesses. If the employer files between 31 days of the due date and August 1, the penalty increases to $110 per form with a maximum of $536,000. Failure to file tax statement forms on or after August 1 incurs a fine of $270 per return or a maximum of $1,072,500 a year for small businesses. Lastly, intentionally neglecting to file comes with a $550 penalty per form with no limitation depending on the infraction. The Internal Revenue Service considers a business a small business if it earns an average of $5 million or less in annual revenue for the past three tax years.<h2>Extension for Filing W-2 Forms</h2>Using the Application for Extension of Time to File Information Returns, also known as Form 8809, employers could ask for a 30-day extension for filing W-2 forms from the IRS. This gives employers a chance to catch up if they think they would miss the deadline. However, the IRS does not automatically grant extensions unless in “extraordinary circumstances or catastrophe.” For example, suppose a business experienced a natural disaster such as a hurricane, tornado, or flood, or your records and books became a victim of fire. In that case, the employer could receive a favorable response on their extension request for filing the wage and tax statement forms. Form 8809 should contain a detailed explanation of the reason for the extension, and the employer should sign it under penalty of perjury. The best time to file Form 8809 is between the 1st and 31st day of January or as early as possible.<h2>Conclusion</h2>Filing W-2 forms on time and correctly is an integral part of any small business. <a href="https://www.realcheckstubs.com/generateStubs" target="_blank">Take the time to create a check stub</a> and have all essential information recorded properly each time you pay an employee. Understanding everything there is to know about W-2s would give you the advantage and eliminate problems in the future. A growing business comes with proper reporting of wage and tax statements.

Form W-2, also known as the Wage and Tax Statement, is an Internal Revenue Service (IRS) tax form used by employers to report wages paid to their employees and the taxes withheld from them at the end of the year. As part of their responsibilities, employers must complete a Form W-2 for every employee in their company who receives a salary, wage, or other compensation.

What is Form W-2?

As an employer who employs people in your business or company, you most likely would file the wage and tax form known commonly as the W-2 form. It is your responsibility to file and give each person receiving a salary, wage, or other compensation from you. However, this does not include independent contractors or self-employed workers, who need to use Form 1099 to report income statements.

Who Files Form W-2s?

The penalties could range depending on how late an employer submits the W-2 tax forms. If an employer fails to file a W-2 employee’s wage and tax form on time, the IRS could impose a penalty of $50 per W-2 if the employer files the correct form within 30 days of the deadline. The maximum penalty is $187,500 for small businesses. If the employer files between 31 days of the due date and August 1, the penalty increases to $110 per form with a maximum of $536,000.

What Are Penalties for Late Filing of W-2 Form for Small Businesses?

Dig into the details and requirements of a W2 for your small business. Learn the ins and outs of W-2 forms and ensure accuracy for both you and your employees.

Mastering W-2 Forms: A Step-by-Step Guide for Employers

W-2 Wage and Tax Statement Form For Small Business

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