If you’re unaware of what is meant by a W-2 employee, a W-2 employee is an individual who is legally employed by an employer in the United States. All W-2 employees receive a W-2 tax form every year to record their taxes and income. W-2 employees are entitled to benefits as governed by the laws and regulations. W-2 employees receive health insurance, paid time off, etc which isn’t provided to contractors.
What is a W-2 Form?
The W-2 form is used by employers in the United States to report the income, tax, and other compensation paid to employees during a fiscal year. Employees use the information on the W-2 form to file their federal and state income tax returns. The W-2 form is critical for both employees and employers because it provides a record of an individual's earnings and tax withholdings for the year. The W-2 form is provided by employers to all employees but not to independent contractors.
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What benefits do W-2 employees get?
W-2 employees get certain benefits from their employers. These benefits are usually recorded on an employee’s W-2 tax forms. Some of the common benefits that W-2 employees receive are as follows:
- Health and dental insurance
- Retirement savings plan
- Paid time off
- Unemployment insurance
- Disability insurance
- Worker’s compensation
Contribution to Medicare and Social Security through FICA.
How can I obtain a W-2 form?
Employers must provide W-2 forms to employees by December 31st of each year. If you haven’t received your W-2 form from your employer or are unable to contact them, you can request a copy of your W-2 form by contacting the Internal Revenue System (IRS). It's important to keep in mind that you will need a W-2 form to file your taxes, so it's best to make sure you have received it promptly.
Who receives copies of the W-2 form?
Typically there are multiple copies of W-2 forms. When an employer issues a W-2 form to an employee, they are required to send copies to several different entities, including the Social Security Administration, state tax agencies, and the employee themselves.
Copy A of the W-2 form is typically sent to the Social Security Administration before the deadline by the employer. Copy B remains with the employee until filing as a part of the Federal income tax return. Copy C is retained by the employer. Copy 1 is filed by your employer to the appropriate state, and city tax agency if required.
What is the W-2 equivalent for non-US employees?
The W-2 form’s equivalent for non-US employers working and living in the United States is form 1042-S. Generally, if a non-US employee receives payments from an employer based in the US, the employer agent must issue a Form 1042-S to the employee and the IRS. Non-US employees must fill out the form and file their income with the IRS.
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Frequently Asked Questions
What does it mean to be a W-2 employee?
Being a W-2 employee means that you are legally employed by an employer in the United States and you receive a W-2 form from your employer at the end of each year to report your earnings and taxes paid. As a W-2 employee, you are entitled to certain benefits such as health insurance, retirement benefits, paid time off, etc.
Is a W-2 employee salaried?
A W2 employee is what we typically consider to be a salaried employee. They work for one employer, engage in employee benefit programs, and work according to the organization's needs and schedules.
Do all employees get a W-2?
Any employee working for an organization (rather than a contractor, for example) must receive Form W-2, regardless of the duration an employee works or how he is paid, such as salary, wages, or bonuses.