Form W-2

Top Popular Questions about A W-2 Form

Your hirer asks you to submit a W2 from each year. The data required in this form is very important for your tax returns. However, a lot of issues always arise. At this point we offer you FAQ with detailed answers to avoid possible mistakes filling out the blank.

What Is a W-2?

The top question we are going to answer is what is a w2 form. Any legal organization is obliged to deliver the document to each employee, who is payed a salary during a year. The total sum of compensation should be $600 or more. This paper demonstrates your total gross income, Social Security earnings, Medicare proceeds and federal and state taxes withheld form your company. Its main objective is to provide the employer with information they later include into reports. Every organization with hired workers is required to send the tax return with the Internal Revenue Service, which verifies the every employee’s tax income information.

Why Is It Happens That Wages Provided on W-2 Template Differ from True Earnings?

According to the law, some types of contributions deducted from your paycheck are not included in wages subjects to taxes. This concerns pre-tax deductions, retirements and annuity deductions. In case, you have none of these contributions on your paycheck, the numbers on your sample will equal your true gross wages.

How to Calculate my Federal and State Taxable Payments?

Here is an easy way to understand scheme of how calculations on W-2 form are made:


+ Non-Wage Compensation (awards, courtesy cars, athletic meals, gift certificates, etc.)


= True Wage Base


– Pre-tax insurances


= Social Security Taxable Gross (Box 3 and Box 5*)


– Retirement


– Annuities


= Federal and State Taxable Gross (Box 1 and 16)

Which Wages to Include to The Document?

All of the following items should be reported due to the government regulations.

І. Financial information:

  1. Wages, tips, other compensation;
  2. Social security wages;
  3. Medicare wages and tips;
  4. “Pre-tax” payroll deductions;
  5. Social Security number.

II. Personal information:

  1. Employer's unique tax identification number or EIN;
  2. Name, address, city, state and zip code of your employer;
  3. Control number;
  4. Your full name.

Is It Needed to File an Income Tax Return if There Weren’t Any Taxes Withheld Last Year?

Yes. It is necessary to file a return if you fall under the category of taxpayers basing on the amount earned, citizenship status, dependency status and age. The amount of taxes withheld can’t determine whether or not you must file a tax return.

How do I use W-2 form?

Basically, you should receive three copies of your W-2: Copy B, C and 2. Copy C is officially your copy. You must attach your Copy B to your federal income tax return if you are mailing it. Keep this document for at least four years. Copy 2 should be attached to your tax return if you mail it.

Your employer must send the completed form to the Social Security Administration (SSA). The due date is the last day of February. You are provided with ability to send this form online. So find an appropriate template and fill it out by inserting the required information into the fillable fields.