How to Complete a W-2 Form

The Internal Revenue Service (IRS) Form W-2, Wage and Tax Statement, is completed by employers reporting on the wages, tips and other forms of compensation paid to their employees. A copy of Form W-2 must be provided to each employee, and a second copy is remitted to the IRS. All Forms W-2 must be transmitted to the IRS with Form W-3, Transmittal of Wage and Tax Statements.

Completion of Form W-2

• 1

  Input the Employer Identification Number (EIN) of your business and your business name, plus address, on boxes b and c of each Form W-2. The EIN and name plus address should exactly match those on file with the IRS.

• 2

  Complete boxes a, e and f with the specific identifying information of the employee (Social Security number, name and address). This specific identifying information must be provided by your employees.

• 3

  Input the amount of gross taxable wages for federal income tax purposes, Social Security purposes and Medicare purposes in boxes 1, 3 , 5 and 7. These amounts are employee specific and will vary for each W-2. A definition of taxable wages for each purpose is included in the IRS Instructions for Forms W-2 and W-3.

• 4

  Input the amount of withholding for federal income tax purposes, Social Security purposes and Medicare purposes in boxes w, 4, and 6. These amounts will also vary for each W-2. Aggregated amounts reported here should match withholding reported on Form 941, Employer's Quarterly Tax Return.

• 5

  Complete box 9, Advance EIC Payment, if the employee was granted an a advance earned income credit (EIC) payment during the year. The EIC payment would have been reported on your Form 941, Employer's Quarterly Tax Return.

• 6

  Complete boxes 10 through 14, if applicable. Boxes 10 through 14 are used for optional programs and tax items you may have provided your employees during the year. Among other items, these programs may include dependent care benefits, employee life insurance, nonqualified retirement plans or 401(k) retirement plan contributions. These boxes are employee specific.

• 7

  Input state and local tax data for each employee in boxes 15 through 20. Not all employers will need to complete these boxes. State and local tax laws vary greatly by jurisdiction. In general, employers should report state and local taxable wages, if any, and state and local withholding, if any.

• 8

  Mail the employee copy of Form W-2 to each employee.

• 9

  Aggregate the total amounts under each box number on Form W-2 and report under the same box number on Form W-3. For example, if you paid your two employees wages, tips or other compensation of $60,000 and $40,000, you will report $100,000 on the "wages, tips or other compensation" box of Form W-3.

• 10

  Mail Form W-3 and the IRS copy of each Form W-2 to the IRS at the address provided on the Form W-3 instructions.