The W-2 is a tax form that shows taxable wages paid taxes withheld from your pay for the year. This form is required to file your federal taxes. Employers are required by IRS to report employees salary and wage information of form W-2. W-2 form is only received if you are an employee but if you are an independent contractor Form 1099 is received instead of form W-2.
Employers are required to send W-2 forms to their employees by 31st January following the close of thecurrent tax year. W-2 Form contains 20 boxes that are explained in detail below.
This is gross taxable wages minus pre-tax items such as health savings, PERPS, medical premiums, etc.
This box contains total federal income tax that is withheld from your pay.
This is calculated as federal gross taxable income plus retirement funds. Social security wages subject to tax has an annual limit. For 2015, this limit is $118500.
This is social security tax that is withheld from your pay. Again here is theannual maximum for social security tax each year. For 2015 this amount is $7,347 (6.2% on earnings up to $118,500).
Total Wages minus items subject to Medicare taxes such as medical premiums, health savings account and parking. There is no annual tax limit for Medicare wages.
This total amount of Medicare tax that has been withheld. The current rate for Medicare tax is 1.45% for the employee.
This is total security tips that are subject to social security tax.
Hourly basis pay is recognized as a wage by IRS. If you do not receive allocated tips, simply add Box1 and Box
This box contains advance earned income from your form 1044.
This box contains thetotal amount of dependent care withheld and is reflected in Box 1.
This has been reflected in box 1 if it is some compensation received under
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