INSTRUCTIONS: Wage and Tax Statement (Form W-2)
An employer is required to complete a Wage and Tax Statement Form, labeled the W-2, for every employee. This document records how much an employee has earned and how much of their income has already been set aside for various taxes and funds. Multiple copies of this form exist for different purposes. An employer can obtain this form from the IRS website or a local office. An employee will receive this document from their employer.
Wage and Tax Statement W-2 Step 1: In box A, the employer should enter their employee's Social Security number.
Wage and Tax Statement W-2 Step 2: In boxes B and C, the employer should enter their Employer Identification Number, name and address.
Wage and Tax Statement W-2 Step 3: Box D is for the "control number," the number assigned to each individual employee's return.
Wage and Tax Statement W-2 Step 4: Box E records the employee's name and address.
Wage and Tax Statement W-2 Step 5: Box 1 records employee total earnings.
Wage and Tax Statement W-2 Step 6: Boxes 3, 5 and 7 record how much of earnings are eligible for Social Security and Medicare garnishment. Boxes 2, 4 and 6 record how much of wages were withheld for federal tax, Social Security and Medicare payments.
Wage and Tax Statement W-2 Step 7: Box 8 records any tips an employer thinks were been reported.
Wage and Tax Statement W-2 Step 8: Box 10 records expenses for dependent care or the cost of such services provided by an employer.
Wage and Tax Statement W-2 Step 9: Box 11 and 12 may not apply. Consult official IRS instructions.
Wage and Tax Statement W-2 Step 9: Box 13 will indicate if an employee is "statutory" (wages withheld for Social Security and Medicare but not federal income tax), was enrolled in a retirement plan, or received sick pay.
Wage and Tax Statement W-2 Step 10: Boxes 15-20 record taxes withheld for state and local taxes, as well as the name of the location of the business.
Wage and Tax Statement W-2 Step 11: Complete all five copies of this form. Submit Copy 1 to the state or local tax department. Keep Copy D for employee records. Mail the other three copies to an employee no later than January 31.
