Did you feel helpless when the W-2 form arrived in your mailbox? If yes, you are among thousands of other people in the same boat. I hope you see many questions about W-2 forms every year because people feel confused. So, if you want to sort out your tax-related matters, get knowledge of each form involved in the tax filing process. In this writing, we will answer a few critical yet common questions for knowledge purposes.

What is a W-2 form? A breakdown of the definition:

If you need to file taxes, then you must have a W-2 form. For instance, you can’t file taxes using last year’s pay stubs. You can use paystub to estimate the refunds from the employer and schedule an appointment. But it’s vital to understand that you can’t use paystub for filing taxes. Before heading further, you must be aware of the basic definition:

“Every employer engaged in trade, business, or paying remunerations should file a W-2 form for each employee. If the cash or non-cash payments are $600 or more against the services performed by employees, then W-2 is a must.”

(IRS)

In short, the IRS requires employees to report employees’ salaries and wages using the W-2 form. It includes information about the income that you have received from your employer. Apart from this, it also has the amount of taxes the company withholds from the paycheck. Furthermore, the W-2 form details the benefits you are receiving from the company.

Sections of the W-2 form:

Earlier, we discussed that the main aim of the W-2 form is to provide employment information that must be in the income tax form. Here is the list of categories that make the form complete:

Amount of federal, local & state taxes that are withheld from your paycheck	Other benefits that employer is offering throughout the year
Details of other benefits like health insurance, care assistance of dependents, contributions to the health savings	Social security earnings
Employee’s gross income	Medicare earnings

The W-2 form is crucial because it provides information to the social security administration and IRS. Later, both institutes use this information to verify the income tax return of an employee.

What are the items to look for in a W-2 form?

If you are an employer, provide W-2 to the employees before 31^st January because they need it to file taxes. Moreover, an employer must provide one copy to the social security administration before the deadline. Apart from this, it has many copies that go to the following authorities:

Copy #	Goes to
Copy A	Social security administration
Copy 1	It’s for the city, state, and local authorities
B copy	Uses for filing employee’s federal tax return
C Copy	It works for the employee’s record
Copy D	It’s for the employer’s record

You can quickly get the form from a copy shop or official website. But the copy must be original and printed on a particular paper. If you didn’t receive the form, immediately contact the employer. It’s OK if you get an electronic version that you can use until you get the original one. Here are the following items that you should look at in-depth for more information:

Things included in the W-2 form:

You must know the difference between W-2 and W-4 tax documents. The employer completes the W-2, and the W-4 is a tax document that employees fill out. Typically, the form includes the following information:

Apart from this, sometimes you might need to fill in additional information. For instance, other categories like dependent care benefits and non-qualified plans should be on the form.

Boxes on the W-2:

It doesn’t matter if you are self-employed and work remotely; it’s vital to complete the W-2 form if you are paying more than $600. The document consists of different boxes that require you to fill up information. Here we are breaking down the details of the complete form:

Box 1	Taxes that are withheld
Box numbers 2-4 and 6	These boxes are about the federal income tax, social security, Medicare taxes, etc.
Box 7	The total amount that the employee received in the account of tips.
Box # 8	The actual number of tips that employees received goes in this box.
9	It has remained empty since 2011
Box 10	Any deduction in the account of children’s expenses

Apart from this, box number 3 entails taxable income in the account of social security. But remember that you can’t include tips, and the amount could be more than box number one.

Box 11	The amount employees withdraw from the 457(b) plan or the non-qualified retirement plan.
Box number 12	Enter the amount according to a worker’s additional benefits and payments.
Box # 13	It consists of three boxes that show you are a part of a retirement plan, have sick pay, and are a legal worker.
Box 15	Entails state ID number of employer
Box 16	Includes the total earnings of an employee

Moreover, box 17 includes the details about the state income tax amount that has been withheld. Besides, the taxable income should be in box number 18, and local taxes that have been withheld come in box 19.

Send copies of the W-2:

Once you have gathered all information, the next step is to fill out the form. There are many chances of errors; you need to be careful. Here is the list of mistakes that an employer can commit while filling out the document:

• You can use an old form
• If you send the form to the IRS instead of the SSA
• If you are filing late
• Handwritten form
• Computerized document but with the formatting mistakes
• Cutting, folding, and stapling form is prohibited
• If you are using a dollar sign in the document

Apart from this, W-2 has various copies, so ensure you send the right one to the right place. But if you are a beginner and things are overwhelming, you can hire an expert to avoid errors.

Conclusion:

If you are an employee and you see any error in the W-2 form, then immediately report it to the employer. For instance, if your name doesn’t match your social security card, you will have to get a new form. If you think W-2 is just a piece of paper, then you are wrong because it’s one of the most important. So, if you want to run functions smoothly, prepare each document in advance.