What is a W-2? The form, the deadline and what W-2 employee means

By the HRPricing editorial teamReviewed October 18, 2026How we research and score

A W-2 (Form W-2, Wage and Tax Statement) is the form an employer sends each employee and the Social Security Administration after the year ends, showing wages paid and the federal, state and FICA taxes withheld; W-2s for 2026 are due February 1, 2027 (IRS W-2 instructions, checked October 2026). A "W-2 employee" simply means a worker on payroll, as opposed to a 1099 contractor.

Form W-2 is the annual IRS form that reports an employee's wages and the taxes withheld from them, filed with the Social Security Administration and given to the employee.

On this page
  1. Reading the main amounts
  2. Deadlines and filing rules
  3. Getting W-2s after you switch payroll providers
  4. W-2 employee vs 1099 contractor

Reading the main amounts

Take an employee on a $60,000 salary who puts 5%, or $3,000, into a traditional 401(k).

Main W-2 amounts for a $60,000 employee with a $3,000 401(k) deferral
What the W-2 reportsAmount
Wages for federal income tax$57,000
Federal income tax withheldPer the W-4 and the IRS withholding tables
Social Security wages and tax (6.2%)$60,000 and $3,720
Medicare wages and tax (1.45%)$60,000 and $870
401(k) elective deferrals (reported with a code)$3,000

Example. Rates from IRS Topic 751; treatment of 401(k) deferrals from IRS Publication 15. The box numbers and codes are set out in the IRS General Instructions for Forms W-2 and W-3. Checked October 2026.

Income tax wages are lower than Social Security and Medicare wages because IRS Publication 15 treats a traditional 401(k) deferral as exempt from federal income tax withholding but not from FICA. The gap is expected and is not an error. State and local wages and taxes are reported in their own boxes at the bottom of the form.

Deadlines and filing rules

  • Due January 31 to both the employees and the SSA, moved to the next business day on a weekend. For 2026 wages that is February 1, 2027.
  • No automatic extension. A 30-day extension to file with the SSA (Form 8809) is granted only in extraordinary cases.
  • If you file 10 or more information returns in total, you must e-file.
  • Household employers follow the same February 1, 2027 date (IRS Publication 926).

Full-service payroll plans usually prepare and file W-2s, but check for year-end form fees: QuickBooks charges $150 for Intuit-prepared year-end forms after you cancel. See the payroll year-end checklist for the rest of the January deadlines.

Getting W-2s after you switch payroll providers

If you leave a payroll provider mid-year, settle in writing which provider issues the year's W-2s, because access to old records differs. Patriot keeps reports and W-2s available after you cancel. Gusto gives admins limited, read-only access. QuickBooks keeps payroll data for one year but says W-2s require an active subscription. Wave access ends at the end of the month, so download first. Check this before you cancel; our payroll software rankings list exit terms for each provider.

W-2 employee vs 1099 contractor

A W-2 employee has income tax and FICA withheld and the employer pays its share of FICA, FUTA and SUTA. A 1099 contractor gets a Form 1099-NEC instead, with no withholding, and pays self-employment tax. Which one a worker is depends on the IRS control tests, not on the form you choose. The full comparison is in W-2 vs 1099.

Frequently asked questions

What is a W-2?
A W-2 is the IRS Wage and Tax Statement. Employers file it with the Social Security Administration and give a copy to each employee, showing the year's wages and the federal income tax, Social Security, Medicare and state taxes withheld. 2026 W-2s are due February 1, 2027.
What is a W-2 employee?
A W-2 employee is a worker on the employer's payroll who has taxes withheld from each paycheck and receives a Form W-2 after the year ends. The employer also pays the employer share of FICA and federal and state unemployment taxes. A 1099 contractor gets no withholding and pays self-employment tax instead.
Why are the wages on my W-2 lower than my salary?
The wage figure used for federal income tax leaves out pre-tax deductions such as traditional 401(k) deferrals, while Social Security and Medicare wages still include 401(k) deferrals (IRS Publication 15). On a $60,000 salary with a $3,000 deferral, income tax wages are $57,000 and Social Security and Medicare wages stay at $60,000.
When do employers have to send W-2s?
By January 31 each year, or the next business day if it falls on a weekend. For 2026 wages the deadline is February 1, 2027, for both employee copies and the SSA filing, per the IRS 2026 W-2 instructions. There is no automatic extension.
What does W-2 mean?
W-2 is the IRS form number for the Wage and Tax Statement. People also use it as shorthand for regular employment, as in a W-2 job or W-2 employee.
Sources (8)
  1. IRS: General Instructions for Forms W-2 and W-3 (2026) (checked Oct 16, 2026)
  2. IRS: Topic 751, Social Security and Medicare withholding rates (updated Sep 24, 2026) (checked Oct 16, 2026)
  3. IRS: Publication 926 (2026), Household Employer's Tax Guide (checked Oct 16, 2026)
  4. Patriot Software: How to cancel Patriot payroll (checked Oct 16, 2026)
  5. Gusto: Cancel your company's Gusto account (checked Oct 16, 2026)
  6. Intuit QuickBooks: Cancel QuickBooks Payroll subscription (checked Oct 16, 2026)
  7. Wave: Cancel Wave Payroll (checked Oct 16, 2026)
  8. IRS: Publication 15 (Circular E), Employer's Tax Guide, for use in 2026 (checked Oct 16, 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.