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Components of a w2 Form
Most employed people are probably familiar with the w2 form. It’s an information return
form used by employers to report to the IRS for the purpose of income taxes. The w2 form
reports wages, tips, and other compensation paid to an employee. It also reports the employee’s
income and social security taxes which have been withheld. This wage information is reported to
the employee, and to the Social Security Administration, who then shares the information with
the Internal Revenue Service.
The lettered boxes on the form contain basic information about the employee and the
employer. They read as follows:
Box a. Employee's social security number
Box b. Employer identification number (EIN)
Box c. Employer's name, address, and ZIP code
Box d. Control number
Boxes e and f. Employee's name and address
Box d can be left blank. It may be used to identify individual w2 forms.
The rest of the form is comprised of a list of numbered boxes. These convey earning information
and read as follows:
Box 1—Wages, tips, other compensation.
Box 2—Federal income tax withheld.
Box 3—Social security wages.
Box 4—Social security tax withheld.
Box 5—Medicare wages and tips.
Box 6—Medicare tax withheld
Box 7—Social security tips.
Box 8—Allocated tips (not applicable to Forms
W2AS, W2CM, W2GU, or W2VI).
Box 9. Do not enter an amount in box 9.
Box 10—Dependent care benefits (not applicable to
Forms W2AS, W2CM, W2GU, or W2VI).
Box 11—Nonqualified plans.
Box 12—Codes.
Box 13—Checkboxes
Box 14—Other.
The codes for Box 12 can be found on the IRS website. They describe a variety of other forms of
income the employee may have received such as nontaxable sick pay and adoption benefits. Do
not enter more than four items in Box 12. The checkboxes in Box 13 apply to statutory
employees (such as certain types of drivers), active recipients of retirement plans, and thirdparty
sick pay.
Common errors on the w2 form include making entries using ink that is too light, or
making entries that are too small or too large. Make sure to use black ink and 12point Courier
font, if possible. Also, make sure not to add dollar signs to the moneyamount boxes. They have
been removed from Copy A and are not required. Do not omit decimal points and cents from
entries. Most importantly, do not incorrectly format the employee’s name in box e. There are
stringent penalties for employers who fail to complete the w2 form by the filing deadline,
January 31st of each year, so it’s very important to complete the form in a timely and accurate
manner.