A W-2 form is a federal tax document prepared by an employer that outlines an employee’s total earnings for the prior year. Commonly referred to as the Wage and Tax Statement, it details not only base wages but also any additional compensation such as bonuses, tips, and commissions. It also includes the amounts withheld for taxes and other deductions.
Additional Information About W-2 Forms
Under federal regulations, businesses are obligated to provide each employee with a completed W-2 by the end of each year, along with submitting a copy to the IRS. This form is essential for employees when filing their annual income tax returns and allows employers to report Social Security and Medicare (FICA) taxes properly. Beyond helps streamline this process by ensuring W-2s are accurately generated and delivered on time, keeping both employees and the IRS informed.