W-2, 1099 Payroll Services

Most working employees receive a Form W-2, but not everyone knows exactly what it is. For some, the information on Form W-2 seems unfamiliar and complex. But don’t worry if you are unsure about the content of this document. We are here to help you understand everything.

What is a W-2 Form: Wage and Tax Statement?

Are you wondering “What is the purpose of a W-2 form?” Simply put, the IRS Form W-2 is a wage and tax statement that reports taxable wages and taxes withheld from your pay. However, if you have ever looked at a W-2 form, you will see it has many lines of information other than just taxable wage information.

There is a lot to learn about Form W-2. So whether you just want an overview or a deep dive, we can help you understand your W-2 form.

Who receives a W-2 form?

If you are an employee on a company’s payroll, you will receive a W-2 form.

It is possible you will receive multiple W-2 forms if you work for more than one company, changed jobs during the same tax year, or the company you work for was acquired by another company.

Here is who does not receive a W-2 form. If you are a freelancer, independent contractor, or gig worker, you may receive Form 1099-NEC from your clients. Read more about the difference between W-2 and 1099 forms.

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How do I get my W-2?

“How do I find my W-2 form?” is a quite common question for taxpayers. In most cases, you won’t need to look for it. That is because your employer will send it to you via mail or email.

“When are W-2 forms sent out?” By law, employers are required to provide you with an IRS Form W-2 by January 31st each year.

A copy of the form is also sent to:

• Social Security Administration (SSA)
• Internal Revenue Service (IRS)
• State or local governments where taxes are withheld or wages are subject to tax

What happens if you never receive a W-2 form?

If you have moved or are worried about receiving the form, contact your employer as soon as possible to ensure your information is updated.

• If your employer has mailed it, but it has only been a few days, wait for it to arrive.
• If your employer has mailed it and weeks have passed, ask your employer to send it again.
• If you haven’t received your W-2 by the end of January, contact your employer to determine if the W-2 has been sent and when. If you still don’t receive your W-2, you can contact the IRS for assistance at 800-829-1040. From there, you will follow the steps listed on IRS.gov.
• If you were never sent a form because the company says you are a 1099 worker (or another scenario), call the IRS at 800-829-1040.

Understanding the IRS W-2 form

As mentioned, Form W-2 contains many codes and boxes, making it difficult to read for some. For a detailed breakdown, check out this article on W-2 box codes.

Don’t want to go line by line? Here is an overview of the items a W-2 will include:

• Your personal and employer information – This type of information on the W-2 form includes tax identification numbers, addresses, etc.
• Money and taxes related to your wages – This includes your actual income, federal income tax, Social Security tax, and Medicare.
• Money and taxes related to your benefits – This includes employer benefits such as retirement plans, insurance plans, dependent care benefits, health savings accounts, or other benefits provided by your employer.
• Money and taxes for your state and local returns – The W-2 form should also include income and tax withholding information for any state where you worked as an employee and local tax information related to your wages.
• Payment information for other items paid through your wages – Some common examples include union dues, sick leave, tuition assistance, charitable contributions, and certain fringe benefits.

What to do with your W-2 form?

Whether you file yourself or ask a tax professional for help, you will need your W-2 form to start the process. Many figures will be entered on your federal tax return, state tax return, or both.

How to file taxes with a W-2

How you file—whether with the help of a tax pro or by yourself—will determine how to file taxes with a W-2 for your situation, but here is the general process:

• Get Form W-2 from your employer.
• Understand the different parts of the W-2 form before proceeding.
• Verify that the information on your Form W-2 matches your records.
• Choose your filing method. Prepare (or have someone prepare) and file your return.
• Keep a copy of the W-2 for your records.

Do I really need Form W-2 to file taxes?

Yes, you need a W-2 to file taxes. You cannot file taxes using your last pay stub; you must have the W-2 form. Although you can estimate your tax refund using information on your pay stub, you cannot file without the information on the W-2 form.

How to get a W-2 form from a former employer

Getting a W-2 can be simple if you only had one employer during a tax year. If you had more than one, you are probably wondering how to get a W-2 from a former employer.

Your former employer is required by the IRS to mail you a copy of the W-2 by January 31st. Take action if you do not receive it by the end of January following the close of the year. Start by contacting your former employer. The best contact is the human resources or payroll department. If you worked for a smaller company, contact your direct supervisor, and they can point you in the right direction.

When you find the right contact person, confirm that they sent the form to the correct mailing address. If the form was sent to the wrong address, ask them to reissue it via email, mail, or sometimes even a secure portal. Or, if you live near your old workplace, you can pick it up.

If you cannot contact your former employer, they ignore your request, or you have not received the form by the end of February, you should contact the IRS.

W-2 vs. W-4: What is the difference?

With names that are only slightly different, it is easy to see why these forms can be confusing. Here is a summary:

Form W-2 is a form your employer fills out, stating your income and withheld taxes for a specific tax year. Your employer sends you a W-2 by the end of January (of the following year) as an earner.
Form W-4 is a form you fill out to let your employer know how much tax to withhold from your paycheck. You fill out this form when you start a new job or want to update withholding information.

What to do if your W-2 has an error

If you notice an error on Form W-2—such as a misspelled name, wrong address, or Social Security number—notify your employer and request a corrected W-2.

Get help filing your W-2 tax form

Now that we have answered the question “What is a W-2?” and covered the key parts of the form, you can confidently file your taxes. If you need guidance with your W-2 form or other important tax forms, let J.C. Phan Income Tax help. Whether you choose to file with a tax pro or file yourself, you can rest assured that we will help you get the biggest tax refund possible.