W2 — Payroll Definition
What is W2? Clear definition and explanation for payroll professionals, HR managers, and employees.
What is Form W-2?
The W-2 (Wage and Tax Statement) is the form your employer sends you by January 31st each year summarizing your annual earnings and tax withholdings. It's essential for filing your tax return. Key boxes: Box 1 (Wages, tips, compensation), Box 2 (Federal tax withheld), Box 3 (Social Security wages), Box 5 (Medicare wages), Box 12 (codes for 401k, health, etc.), and Box 17 (State tax). Your final paystub's YTD figures should closely match your W-2.