Form W-2
The annual wage and tax statement employers furnish to each employee by January 31.
Form W-2 is the annual Wage and Tax Statement that U.S. employers furnish to each employee and to the Social Security Administration by January 31 of the year following the calendar year reported. The form summarizes the employee's gross wages, federal income tax withheld, Social Security wages and withholding, Medicare wages and withholding, state income tax withheld, and several specialized boxes for retirement contributions, dependent-care benefits, and Code-DD employer-sponsored health coverage.
The W-2 is the primary document the employee uses to file their personal federal income tax return. The IRS and SSA cross-check the W-2 totals against the employer's quarterly Form 941 filings; meaningful discrepancies trigger an IRS notice and possible penalty. Most modern small-business payroll software generates W-2s automatically from year-to-date payroll totals; verify the totals against your last quarter's Form 941 before authorizing the W-2 transmission.