How to Report Employee Wages with a W-2 Form

The W-2 Wage and Tax Statement is a form used to report an employee’s wages for the year, and the taxes withheld from them. Employers are required to send employees a W-2 for their 2009 wages by Feb 1, 2010, as sections of the W-2 are used to complete the employee’s tax return. Employers must keep a copy of the W-2 for their own records, and send other copies to the employee, the social security administration, the IRS, and state and local governments that require tax withholdings.

Here is some of the information employers will need to have on hand to fill out the W-2 form:  

• Employee’s name, address, and Social Security Number
• Employer Identification Number (also called a federal tax ID number)
• Employer’s name, address, zip code
• Employee’s wages, tips and compensation (including non-qualified retirement plans)
• Amount of federal income tax withheld from these wages
• Employee’s social security wages, and the amount of social security tax withheld
• Employee’s Medicare wages, and the amount of Medicare tax withheld
• Amount of tips the employee received and reported
• Any advance Earned Income Tax Credit payments
• Any dependent care benefits
• Information on state and local income and taxes

You can find more W-2 tax filing instructions for employers through the IRS, or go straight to the W-2 form.

For more information about business taxes, go to www.irs.gov.

Laws on this topic may vary from state to state. This content is not meant to provide you with complete information and it is not intended to be legal or tax advice. It is recommended that you consult with your own attorney, accountant or other advisor regarding your specific situation.