Form W-2: Wage and Tax Statement

Who Files Form W-2

Employers must furnish a W-2 to every employee from whom they withheld federal, Social Security, or Medicare tax (or any employee paid $600+ during the year). Employees use the W-2 to file Form 1040.

What Form W-2 Reports

Box 1 reports federal taxable wages; Boxes 2, 4, and 6 report federal income, Social Security, and Medicare tax withheld. Box 12 codes report items like 401(k) contributions, employer-paid health coverage, and disqualifying ESPP dispositions. State and local wages and taxes appear in boxes 15-20. Multiple W-2s are common for employees who change jobs or work in multiple states during the year.

Key Deadlines

• January 31: employers must furnish W-2 to employees and file Copy A with SSA
• April 15: employees must file Form 1040 reporting W-2 income

Common Mistakes

• Filing without a corrected W-2 when the employer issued a W-2c
• Missing equity compensation amounts already included in Box 1 (RSU vesting, ESPP disqualifying dispositions, NQSO exercises)
• Multi-state allocation errors when working remotely from a different state than the employer
• Not adjusting state withholding when moving between states mid-year

Best Practices

• Verify Box 1 (federal taxable wages) excludes pre-tax 401(k), HSA, and pre-tax health premium amounts. If those flow through to Box 1 incorrectly, request a W-2c.
• Cross-check RSU vesting income on Box 1 against your equity portal so you do not double-count it on your return.
• For multi-state employees, confirm Box 16 wages match days worked in each state. New York and California specifically scrutinize allocation when employees relocate mid-year.
• If Box 12 shows code DD (employer health coverage) above 30K, double-check that the employer is reporting it as informational only and not as taxable wages.
• Save W-2s for at least four years after filing. They are the primary evidence in any IRS wage-mismatch notice.

Source: Official Form W-2 information at IRS.gov