What’s a W-2 Form? Responsibilities, Deadlines, & How to File

Form W-2 is one of the most important annual tax documents employers must prepare. Employers must complete W-2s accurately and on time or face costly penalties. This guide explains what a W-2 is, who receives one, employer responsibilities, how to complete and file the form, and how to correct errors.

What is a Form W-2?

Form W-2 is an IRS tax document employers must file annually to report wages paid to employees and the taxes withheld from those wages. Employers provide a copy to each employee and also send a copy to the Social Security Administration (SSA). Employees then use their W-2 to file federal and state income tax returns.

For official instructions, employers can review IRS Form W-2 guidance here.

What Is the Purpose of a W-2 Form?

The purpose of a W-2 is to give the IRS, state tax agencies, and the employee accurate information about annual taxable wages and tax withholdings. It reports how much an employee earned during the tax year, the amount of taxes withheld, and other wage-related information the IRS requires. Employees use their W-2s to prepare their personal tax returns, while government agencies use them to verify payroll taxes and Social Security earnings.

Who Receives W-2 Forms?

Any worker classified as an employee—whether full-time or part-time—must receive a W-2 if they were paid $600 or more in wages during the year. This includes taxable benefits and certain fringe benefits.

Independent contractors do not receive a W-2. Instead, they receive Form 1099-NEC.

For more on classification, read the following articles:

• W-2 vs. 1099 Employees: What’s the Difference?
• W2 vs W4: What’s The Difference?

When Should Employers Send W-2s?

Employers must provide Form W-2 to employees by January 31 each year. This same deadline applies for submitting W-2 copies to the SSA. If January 31 falls on a weekend, the due date moves to the next business day.

Employer W-2 Responsibilities

Employers are responsible for preparing accurate, complete, and timely W-2s. To do this, Employers must:

• Report taxable wages and compensation
• Report federal, state, local, Social Security, and Medicare taxes withheld
• Provide copies to employees on time
• File copies with the SSA
• Maintain payroll and tax records
• Correct W-2 errors promptly
• Use the correct employee classification
• Follow IRS electronic filing requirements

Note: Employers may also need to provide state copies to state tax agencies, depending on regional requirements.

Copies of W-2 Forms

Each W-2 contains multiple copies for different recipients:

• Copy A – Sent to the SSA
• Copy B – Filed by the employee with their federal tax return
• Copy C – Employee’s personal record
• Copy D – Employer’s personal record
• Copy 1 – Filed with applicable state or local tax return
• Copy 2 – Employee’s copy for state or local tax return

Note: Employers should distribute all employee copies together and retain their own copies for recordkeeping.

How to Read a W-2: What Each Box Means

A W-2 contains numbered boxes for wages, taxes withheld, benefits, retirement contributions, and local/state information. Understanding each box helps employers verify accuracy and resolve employee questions.

How to Fill Out a W-2 Form Step by Step

Below are the 12 steps employers should follow to complete Form W-2

1. Gather Employee Information

Collect the employee’s legal name, address, and Social Security number.

2. Enter Employer Information

Add the employer’s name, address, and EIN in Boxes B and C.

3. Identify the Control Number (Box D)

If your payroll system uses internal tracking numbers, enter them here (optional).

4. Enter Employee Wages (Box 1)

Report total taxable wages, including salary, tips, bonuses, and taxable benefits.

5. Enter Federal Income Tax Withheld (Box 2)

Record total federal income tax withheld during the year.

6. Enter Social Security Wages and Tax (Boxes 3 & 4)

Report wages subject to Social Security tax and the amount withheld.

7. Enter Medicare Wages and Tax (Boxes 5 & 6)

Report wages subject to Medicare tax and the amount withheld.

8. Report Social Security Tips (Box 7)

Include reported tips if applicable.

9. Include Allocated Tips (Box 8)

Report allocated tips for certain service industries.

10. Complete Box 12 Codes

Include retirement plan contributions, fringe benefits, and other codes required by the IRS.

11. Enter State and Local Information (Boxes 15–20)

State wages, income tax, locality names, and local tax amounts.

12. Review for Accuracy

Verify all numbers match payroll records before issuing the W-2.

How to File a W-2 Form

Employers must file W-2s with the SSA and distribute employee copies. To file a W-2, an employer must:

1. Prepare all W-2s for employees
2. Complete Form W-3 (transmittal form) if filing by postal mail
3. Submit electronically via SSA’s Business Services Online (BSO)
4. Send employee copies by January 31
5. Send state copies if required
6. Retain employer copies for at least four years

Do employers have to file electronically?

Electronic filing is required for employers submitting 10 or more forms.

Employer Form W-2 Penalties for Non-Compliance

Employers can face significant IRS penalties for filing W-2s late, inaccurately, or incorrectly, though these penalties vary by business size.

Penalties for Submitting W-2s Late

• Up to 30 days late: $50 per form
  • Max: $197,500 (small businesses)
  • Max: $565,500 (others)
• 31 days late through August 1: $110 per form
  • Max: $565,500 (small businesses)
  • Max: $1,696,500 (others)
• Filed on or after August 1: $280 per form
  • Max: $1,130,000 (small businesses)
  • Max: $3,392,000 (others)
• Intentional disregard: $570 per form
  • no maximum penalty

Note: Employers who cannot file on time may request a 30-day extension (Form 8809), but only under “extraordinary circumstances or catastrophe.”

Other W-2 Non-Compliance Penalties

• Filing more than 250 W-2s on paper (instead of online)
• Submitting unreadable forms
• Misclassifying workers (filing a 1099 instead of a W-2)
• Failing to issue a required W-2 to an employee

How Do You Correct W-2 Form Errors?

Employers must issue Form W-2C (Corrected W-2) when a previously filed W-2 contains an error. Corrections should be filed promptly and provided to employees and the SSA.

Can You Request an Extension to File Form W-2?

Yes, but extensions are granted only under specific circumstances. Employers may file Form 8809 to request a 30-day extension, but must provide justification, and only one extension is allowed.

How Paycor Helps With W-2 Forms

Paycor’s payroll and tax automation tools help employers manage W-2 forms accurately and on time. With HR & Payroll Solutions, employers can:

• Automate wage and tax calculations
• Generate W-2 and W-3 forms
• File electronically with the SSA
• Manage employee records
• Reduce compliance risk
• Simplify year-end tax reporting

Paycor also helps ensure correct worker classification and integrates onboarding tax forms to reduce errors.

Simplify Your W-2 Form Compliance with Paycor

Managing W-2s doesn’t have to be stressful. Paycor automates payroll, simplifies reporting, and ensures employers have the tools they need to stay compliant during tax season and beyond.

Form W-2 FAQs

Still have questions about filing W-2 Forms? Read on.