A form provided by employers to employees, summarizing their annual wages, taxes withheld, and other relevant information for income tax purposes.
A W-2 form is a tax document used by employers to report an employee's annual earnings and tax withholdings to the Internal Revenue Service (IRS) in the United States. It provides a summary of the employee's income, including wages, salaries, tips, and other compensation, as well as deductions and taxes withheld. Small business owners are responsible for issuing W-2 forms to their employees at the end of each calendar year. The W-2 form is crucial for both the employer and the employee for accurately filing income tax returns and ensuring compliance with tax regulations. It includes essential information such as the employee's Social Security number, name, address, and employer identification details, along with details of earnings and taxes paid. Small business owners should carefully prepare and distribute W-2 forms to their employees in a timely manner to facilitate tax filing and maintain compliance with tax laws.