Form W2

Why do you need it?

• If you’re an employerThe IRS requires that employers withhold taxes from employees’ paychecks throughout the year, and subsequently pay those taxes to the IRS. The IRS requires that companies file a W2 Form for each employee to document all wages paid and tax withheld. Additionally, companies are required by law to provide W2s to every employee on an annual basis.

• If you’re an employeeIf you are an employee, you are entitled to an annual W2 from your employer. These are usually made available to you in the early part of each calendar year, and will be used when you file your annual tax return.

Tips and instructions for use

Many online W2 templates use the IRS’ “information only” copy, which has the second page printed in red. Do not file this red version with the IRS or you will be subjected to penalties. Instead, be sure to use the official version of the W2 Form approved for submission to the IRS. This copy will have all pages printed in black, and is available via the link on this page.

Completing the W2 Form is a straightforward process. You’ll need to have the employee’s name, social security number, wage information, address, and the amount of income tax, Social Security tax, and Medicare tax withheld.

Note that you need to submit a copy of each employee’s W2 to the Social Security Administration. This cannot be done using a W2 form template. Instead, you will need to fill out the forms on the SSA’s website.

Helpful information

If you need guidance when completing and filing your W2 Forms, use the IRS’ official guide, “General Instructions for Forms W2 and W3”, available from the IRS website.

Remember to complete and file W2 Forms for every employee each year. Forms are usually due to your employees by the end of January every year.

FAQ

What is a W2 form?

The W2 form, also called a Wage & Tax Statement, is an IRS tax form that your company must send to each employee and to the IRS each year. The form’s purpose is to report wages paid and taxes withheld for each of your company’s employees.

How do I create a W-2 for my employees?

To create a W-2 form for your employees, you can either send them the one that the IRS provides, or use a professionally made template from respectable third parties (e.g. PandaDoc). As long as it has the required information, it will be legal and valid.

Who needs a W-2 form?

Any business that employs people, pays a single employee at least 600 dollars per year (after taxes and other deductions), and deducts taxes from their paychecks must file the W-2 forms. The deadline to send it is usually January 31.