Glossary term
Form W-2
Annual wage and tax statement issued by January 31.
Definition
Form W-2 is the annual wage and tax statement that employers must issue to each employee by January 31 of the following year. It summarizes the prior calendar year's gross wages, federal income tax withheld, Social Security wages and tax, Medicare wages and tax, state and local tax, and contributions to retirement plans, HSAs, and other pre-tax benefits. Employees use the W-2 to file their personal income tax return. Employers also file a copy with the Social Security Administration. W-2s are issued only to employees on payroll; independent contractors receive Form 1099-NEC instead.
Example
An employee who earned $80,000 in 2024 will receive a 2024 W-2 by January 31, 2025.
Related terms
- Pay period — The recurring window of time covered by a single paycheck.
- Pay frequency — How often paychecks are issued.
- Payday — The calendar day wages are deposited.
- In arrears — Wages paid after the pay period ends.
- Biweekly — Every other week — 26 paychecks per year.
- Semimonthly — Twice per month on fixed dates — 24 paychecks per year.
See also
- Pay schedule calculator — convert salary to per-paycheck amount
- Pay frequencies primer — weekly, biweekly, semimonthly, monthly
- Frequently asked questions