What is Form W-2?

LiveRec EditorialUpdated

Form W-2, the Wage and Tax Statement, is the form a US employer files for each employee, showing wages paid and taxes withheld during the year. The employee uses it to file a tax return. An employee paid through payroll receives a W-2, while an independent contractor generally receives a Form 1099 instead.

Example

A software engineer on payroll receives a W-2 from the employer after year end, reporting total wages and federal income tax withheld. A contractor invoicing the same company would not.

See W-2 vs C2C, Form 1099 and Form W-4.

Sources

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.