Form W-2 is an important tax document that employers use to report an employee’s annual wages and the amount of taxes withheld from their paycheck. Employers are required to issue a Form W-2 to each employee by January 31st for the previous year. The form includes details such as gross wages, tips, bonuses, Social Security, Medicare, and federal income tax withheld, as well as state and local tax information, if applicable. Employees use the information on their W-2 to file their annual income tax returns with the IRS.
