IRS Form W-2 for 2022: Simple instructions and PDF Download
Updated December 27, 2021
If you ’ ve paid an employee more than $ 600.00 in a calendar year, you are required by law to send them a W-2 to help them get their taxes done — and to help the government ensure they ’ rhenium reporting everything correctly. You besides must provide a W-2 to any employee if you withheld federal, Social Security, and Medicare taxes from their wages, no count the sum. here ’ s a agile overview of how W-2s shape and how to complete them for your employees .
What is Form W-2?
A W-2 is used by employers to report employee crying annual wages, federal, Social Security, and Medicare taxes withheld, american samoa well as state taxes ( if any ) that are withheld throughout the year. Along with employee wages and withholding information, a W-2 besides provides totals for submit compensation, dependent worry benefits, health savings account contributions, and tip income .
think of it this way : if you have employees and paid them at any time throughout the year, you credibly need to provide them with a W-2 do January. The exceptions are for contractors or freelancers : For them, you will need to provide a Form 1099-NEC .
In summation to providing W-2 forms to all employees, you are besides responsible for filing a copy of each employee ’ sulfur W-2 with the Social Security Administration ( SSA ), angstrom well as submitting Form W-3, which includes all the totals from your employees. For businesses with more than 250 employees, you will need to submit your W-2s electronically to the SSA along with your W-3. Read more about filling out your W-3s .
When should W-2s be filed?
Your employees ’ W-2s should be received by both current and former employees by January 31st each class. The forms besides need to be filed with the SSA by January 31st. A erstwhile, 30-day reference is possible for businesses that can not file by that date, but it ’ south important to note that the extension is only for filing with the SSA – employees still must receive their W-2 from you by January 31st. besides, note that any W-2s which are returned as undeliverable must be kept on file for four years .
If you use a payroll serve provider, it ’ s likely that W-2s will be prepared for you, though it remains the responsibility of the employer to ensure that the data on them is accurate and the forms are sent in a seasonably manner .
What do you need to fill out a W-2?
When you ’ re ready to complete your W-2s for the class, you will need the take after information at your fingertips :
- A downloadable Form W-2 PDF
- Personal information for each employee, including name, address, and Social Security number
- Your employer EIN number
- Total amount of wages and/or tips paid for each employee
- Total federal, state, and local taxes withheld for each employee
- Total Social Security and Medicare taxes withheld for each employee
- Deductions for dependent care assistance programs for each employee
- Other compensation and benefits including elective deferrals for retirement plans and the cost of employer-sponsored health coverage for each employee
If you ’ ve been keeping dear payroll records throughout the class ( or relying on good payroll software ) gather this information should require little feat, if any .
Instructions for filling out Form W-2
Remember that you ’ ll need to prepare and deliver a different W-2 mannequin for each employee .
Boxes A-F on a W-2 represent employee/employer information :
- Box A – Be careful to ensure your employee’s social security number is entered correctly here
- Box B – Enter your EIN number
- Box C – Enter the name and address of your business
- Box D – This is the control number, and is not necessary to use
- Box E & F – Enter your employee’s name and address
once complete, enter the following in the number boxes :
- Gross wages, tips, and any other compensation.
- Total amount of federal income tax withheld from employee wages for the year.
- Total amount of Social Security wages for the year. Social Security wages can be different than the figure shown in Box 1, as Social Security wages also include any deferrals to retirement plans as well as contributions to Health Savings Accounts. This box will also reflect whether the income threshold ($137,700) has been hit. Once that threshold is reached, you would no longer include the wages above $137,700.
- Total of Social Security tax withheld
- Total of Medicare Wages. Like Social Security wages, Medicare wages can also include retirement deferrals and HSA contributions, but unlike Social Security, there is no income threshold to reach, so all wages are included in the Medicare wage total.
- Total Medicare tax withheld for the year
- Report any Social Security tips received.
- For restaurants and bars, enter any allocated tips that the employee received during the year. Note that there are several special rules for restaurant payroll for tipped wages.
- Box 9 is left blank. It was previously used for businesses that were participating in the W-2 Verification Code pilot program.
- Report any dependent care assistance that was deducted from employee wages, as well as any employer contributions.
- Enter any distributions from nonqualified deferred compensation plans.
- Box 12 is where a variety of tax-deferred compensation, benefits, and non-monetary compensation are recorded. These codes include the following:
A – Uncollected Social Security or RRTA tax on tips
B – Uncollected Medicare tax on tips ( but not Additional Medicare Tax )
C – Taxable cost of group-term animation policy over $ 50
D – Elective deferrals to a section 401 ( kilobyte ) cash or deferred placement plan ( including a elementary 401 ( kilobyte ) agreement )
E – Elective deferrals under a section 403 ( b ) wage decrease agreement
F – Elective deferrals under a part 408 ( thousand ) ( 6 ) wage reduction SEP
G – Elective deferrals and employer contributions ( including nonelective deferrals ) to a incision 457 ( bel ) deferred compensation design .
H – Elective deferrals to a section 501 ( coulomb ) ( 18 ) ( D ) tax-exempt security constitution plan
J – Nontaxable vomit yield
K – 20 % excise tax on excess golden parachute payments
L – Substantiated employee business expense reimbursements
M – Uncollected Social Security or RRTA tax on taxable monetary value of group-term life policy over $ 50,000 ( former employees entirely )
N – Uncollected Medicare tax on taxable price of group-term life sentence policy over $ 50,000 ( but not Additional Medicare Tax ) ( early employees only )
P – Excludable moving expense reimbursements paid directly to the employee
Q – Nontaxable battle give
R – Employer contributions to an Archer MSA
S – Employee wage reduction contributions under a part 408 ( phosphorus ) SIMPLE plan .
T – Adoption benefits
V – Income from exercise of nonstatutory stock choice ( sulfur )
W – Employer contributions ( including employee contributions through a cafeteria design ) to an employee ’ s health savings account ( HSA )
Y – Deferrals under a segment 409A nonqualified deferred recompense plan .
Z – Income under a nonqualified submit compensation plan that fails to satisfy section 409A
AA – Designated Roth contributions under a segment 401 ( potassium ) design
BB – Designated Roth contributions under a section 403 ( b ) plan
CC – HIRE exempt wages and tips ( 2010 entirely )
DD – Cost of employer-sponsored health coverage
EE – Designated Roth contributions under a governmental section 457 ( b ) plan
FF – Permitted benefits under a certified small employer health reimbursement arrangement ( the come the employee is entitled to receive for the class, not the actual total )
GG – income from qualify fairness grants under segment 83 ( one )
HH – Aggregate deferrals under section 83 ( one ) elections as of the close up of the calendar year
- Check the appropriate box for each of your employees if one of these conditions applies. Note that there may be limits to how much W-2 income employees can contribute tax-free to your company’s retirement plan.
- Anything else that needs to be reported can be entered here
- Enter your state and your state identification number
- Enter taxable wages for the state, if state income tax is reported in your state
- This box displays the total amount of state taxes that were withheld for the year
- If county or local tax is reportable, this is where you will enter employee wages
- Enter any county or local taxes withheld from employee wages
- Enter the name of the county or local taxing agency
And that’s it!
If you use a payroll service provider, W-2s should be filled out mechanically, which will alleviate a batch of the headaches of end-of-year tax clock. For extra data on Form W-2, visit the IRS web site for detail instructions .