What is Form W-2? Understanding Its Purpose and Requirements

Who must file Form W-2?

As an employer, you must file Form W-2 if you’ve,

• Withheld any Income, Social Security, or Medicare taxes from your employee wages, regardless of the wage amount.
• Paid $600 or more in wages to any employees even if there was no withheld Income, Social Security, or Medicare taxes.

Wages paid to contractors or other non-employees are not reported in W2. You must file a 1099 form instead.
Click here to learn more about Form 1099.

What information must be reported on a W2 Form?

To file your W2 form, you’ll need the following information,

• Employer information: Provide basic information, such as name, TIN, and address.
• Employee information: Provide the employee’s basic information, such as their name, TIN, and address.
• Wage information: Provide a detailed breakdown of wages paid to the employee. This includes,
  • Total wages, tips, and other compensation paid
  • Wage amount subject to employee Social Security tax (excluding Social Security tips and allocated tips)
  • Social Security tips
  • Medicare wages and tips
  • Allocated tips
  • Dependant care benefits
• Federal taxes withheld: Provide a detailed breakdown of taxes withheld from the employee wages. This includes,
  • Federal income tax withheld
  • Social Security tax withheld
  • Medicare tax withheld
• State and Local information: Based on where your business operates, and where the employee resides, you may need to report certain state-specific information, such as the employer’s state ID number, state income, state income tax withheld, local income, local income tax withheld, and locality name.

Click here to learn more about the step-by-step instructions to complete the W-2 form.

What are the different copies of the W2 tax form?

Form W2 comprises multiple copies, each of which serves a different purpose.

• Copy A (Employer) - To be sent to Social Security Administration
• Copy 1 (Employer) - To be sent to City, State, or Locality
• Copy B (Employee) - To be filed with the employee’s Federal Tax Return
• Copy C (Employee) - For employee's records
• Copy 2 (Employee) - To be filed with the employee’s State, City, or Local Income Tax Return
• Copy D (Employer) - For employer's records

When is the deadline to file Form W-2 for the 2025 tax year?

The deadline to file Form W2 with the Social Security Administration (SSA) for the 2025 tax year is February 2, 2026, since January 31 falls on a weekend.

Employers must also furnish Form W-2 copies to employees by February 2, 2026.

Click here to learn more about the federal and State W-2 deadlines.

Are there any penalties for late filing of Form W2 for 2025?

Yes. If you fail to file a W-2 on time, the IRS will impose penalties ranging from $60 to $680 per form, depending on how late the form is filed.

Avoid costly IRS penalties by ensuring your Form W-2 is filed accurately and on time. Learn more about W-2 Penalties.

Is there an option to request an extension to file the W2 form?

Yes, you can request a 30-day extension to file Form W-2 with the SSA by submitting Form 8809 to the IRS. Extensions are granted only for specific reasons, such as disasters, serious illness, or first-year business operations. Note that this extension isn’t automatic; Form 8809 must be submitted on paper.

Click here to learn more about W-2 extension Form 8809.

Form 8809 grants an extension only to file your W-2. If you need an extension to furnish recipient copies, you can use Form 15397 or send a letter to the IRS.

How to file Form W2?

Form W-2 can be filed electronically or on paper. However, the SSA requires electronic filing if 10 or more forms are filed. The SSA recommends filing Form W-2 electronically, even for fewer forms less than 10, because of its quick processing and instant updates on the filing status.

In order to e-file Form W-2 securely and accurately and to distribute the employee copies, get started with an IRS-authorized
e-file service provider, and TaxBandits has got you covered!

See how TaxBandits simplifies your W-2 e-filing

How do you correct errors made on IRS Form W-2 for 2025?

If there is an error on a previously filed Form W-2, you must correct it using Form W-2c, Corrected Wage and Tax Statement.

Be sure to file a separate Form W-2c for each Form W-2 that needs correction.

Click here to learn more about how to correct errors using Form W-2c.