When Do W-2s Come Out?

Your Form W-2 impacts your federal and state tax filings. It’s therefore imperative that you get your W-2 on time. But what is a W-2? When should you receive it? How do you read a W-2? And what should you do if you find an error on your W-2? Read on for answers.

What is a W2?

IRS Form W-2, Wage and Tax Statement, is used by employers to report employees’ annual wages and salaries, taxes withheld, and other compensation. Your employer must give you:

• Your Form W-2 if they paid you at least $600 for the year
• Copy B to file with your federal income tax return
• Copy 2 to file with your state or local tax return, if applicable
• Copy C to retain for your records

Only employees receive form W-2.

When does a W2 come out?

Your employer has until January 31 to furnish Forms W-2 to employees. If the deadline falls on a Saturday, Sunday, or legal holiday, your employer must furnish Forms W-2 by the following business day. Employers that provide online access to Forms W-2 must do so by January 31. Those that don’t supply online access must mail or hand-deliver Forms W-2 no later than January 31. If don’t receive your Form W-2 by the deadline, let your employer know so they can resolve the issue.

How to read a W-2 form?

Though your Form W-2 is essentially about how much money you earned and the amount of taxes you paid, it’s also a detailed document. It shows, for instance, your retirement plan contributions, the amount your employer paid for your health insurance, and nontaxable income you received from your employer.

Here’s a breakdown of relevant W-2 boxes: 

• Box 1:
  • Total wages — including salaries, tips, and other compensation — subject to federal income tax. Box 1 does not show pre-tax deductions or nontaxable wages.
• Box 2:
  • Federal income tax withheld from your wages.
• Box 3:
  • Wages subject to Social Security tax. This amount should not exceed the annual Social Security wage limit.
• Box 4:
  • Social Security tax withheld from your wages.
• Box 5:
  • Wages subject to Medicare tax. No annual wage limit applies to Medicare tax.
• Box 6:
  • Medicare tax withheld from your wages. This includes regular Medicare tax, and if applicable, the additional Medicare tax of 0.9% for high-income earners.
• Box 7:

  • Tips you reported (to your employer) that were subject to Social Security tax. This amount is also reflected in Box 1 wages.

• Box 8:
  • Tips your employer allocated to you. This amount is not shown in Box 1 wages.
• Box 10:
  • Dependent care benefits you received from your employer. If you contributed more than the annual pre-tax limit, the excess amount is taxable and includable in Box 1 wages.
• Box 11:
  • Taxable amounts distributed to you from your employer’s non-qualified deferred compensation plan.
• Box 12:
  • Used to deliver information about various types of compensation and benefits, such as taxable group-term life insurance, elective deferrals to a 401(k) plan, Roth 401(k) contributions, adoption benefits, nontaxable sick pay, and cost of employer-sponsored health coverage. Refer to the IRS guidelines on values for this field.

• Box 13:
  • Your employer must check whichever applies:
  • You’re a statutory employee
  • You contributed to your employer’s retirement plan
  • You received third-party sick pay
• Box 14:
  • Other information your employer wants you to know, such as state disability insurance tax withheld, union dues, tuition assistance payments, health insurance premiums deducted, and uniform payments.
• Box 16:
  • Wages subject to state income tax.
• Box 17:
  • State income tax withheld from your wages.
• Box 18:
  • Wages subject to local taxes, such as city or county taxes.
• Box 19:
  • Local taxes withheld from your wages.

What if there’s an error on my W2 form?

If you see a mistake on your W-2 — such as incorrect name, incorrect Social Security Number, incorrect wages, or incorrect taxes withheld — let your employer know as soon as possible. Depending on the error, your employer may need to give you a corrected W-2 via Form W-2c, which you can then use to amend your tax returns if necessary. Having trouble getting your employer to correct your W-2?

Contact the IRS.

This communication is for informational purposes only; it is not legal, tax or accounting advice; and is not an offer to sell, buy or procure insurance.

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