--- title: "Form W-2: Definition and Sources | Tax Glossary" description: "Form W-2 is the Wage and Tax Statement an employer files for each employee, showing yearly wages paid and the taxes withheld from them." url: https://wallacecpa.multisites.ai/glossary/form-w-2 publisher: Wallace CPA phone: +1-877-682-1171 quote: https://wallacecpa.multisites.ai/contact --- Federal tax # Form W-2 Form W-2 is the Wage and Tax Statement an employer files for each employee, showing yearly wages paid and the taxes withheld from them. Every employer must file a Form W-2 for each employee. It reports wages and withheld tax for the year. The employer sends one copy to the employee and one to the Social Security Administration. Employees use the W-2 to complete their return. Employers build it from payroll records, so the numbers must match what they reported on [Form 941](https://wallacecpa.multisites.ai/glossary/form-941). Workers paid as contractors get a [Form 1099-NEC](https://wallacecpa.multisites.ai/glossary/form-1099-nec) instead. An error in worker status is a common cause of [payroll tax](https://wallacecpa.multisites.ai/glossary/payroll-tax) trouble. The [payroll page](https://wallacecpa.multisites.ai/services/payroll) describes how payroll records feed these forms. [Wallace CPA can helpPayroll services](https://wallacecpa.multisites.ai/services/payroll) ## Related terms - [Form 941](https://wallacecpa.multisites.ai/glossary/form-941) - [Payroll tax](https://wallacecpa.multisites.ai/glossary/payroll-tax) - [Form 1099-NEC](https://wallacecpa.multisites.ai/glossary/form-1099-nec) - [Standard deduction](https://wallacecpa.multisites.ai/glossary/standard-deduction) ## Sources 1. [IRS: About Form W-2](https://www.irs.gov/forms-pubs/about-form-w-2) ## Talk to Wallace CPA Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one. [Call (877) 682-1171](tel:+1-877-682-1171)[Send a message](https://wallacecpa.multisites.ai/contact) 180 State Street, Suite 225, Southlake, TX 76092