Form W-2, Wage and Tax Statement
Understand Form W-2's purpose and details to manage wages and taxes effectively.
Form W-2 overview
Purpose
Form W-2 (Wage and Tax Statement) is used to report wages paid and taxes withheld from employees during a calendar year. Employers are required to distribute W-2s to:
- Each employee
- The Social Security Administration (SSA)
- Relevant state and local tax agencies
Employees use Form W-2 to complete their personal tax returns, while the SSA uses it to credit earnings for benefits. The SSA also shares this information with the IRS.
Field reference: Form W-2
The following describes each box on Form W-2:
Boxes 1–6: Federal wages and taxes
- Box 1 – Wages, tips, other compensation
Taxable wages, tips, and other compensation paid to the employee. Does not include elective deferrals (e.g., 401(k) contributions).
- Box 2 – Federal income tax withheld
Total federal income tax withheld from the employee's wages.
- Box 3 – Social Security wages
Wages subject to Social Security tax (excluding tips and allocated tips).
- Box 4 – Social Security tax withheld
Total Social Security tax withheld from the employee (employee share only).
- Box 5 – Medicare wages and tips
Wages and tips subject to Medicare tax. There is no wage base limit.
- Box 6 – Medicare tax withheld
Total Medicare tax withheld, including any Additional Medicare Tax.
Boxes 7–11: Tips and other benefits
- Box 7 – Social Security tips
Tips the employee reported, even if no tax was withheld due to insufficient wages.
- Box 8 – Allocated tips
Tips allocated to the employee by large food and beverage establishments.
Not included in Boxes 1, 3, 5, or 7.
- Box 9 – Blank
- Box 10 – Dependent care benefits
- Box 11 – Nonqualified plans
Includes distributions from nonqualified plans and Section 457(b) plans.
Box 12 – Codes
Box 12 includes one or more codes identifying specific types of compensation or benefits. Some examples:
Code | Description |
A | Uncollected Social Security tax on tips |
C | Taxable cost of group-term life insurance > $50,000 |
D | Elective deferral under a 401(k) plan |
DD | Cost of employer-sponsored health coverage |
W | Employer HSA contributions |
AA | Designated Roth contributions under 401(k) |
EE | Designated Roth contributions under governmental 457(b) |
Refer to IRS W-2 instructions for the full list of Box 12 codes.
Box 13 – Checkboxes
- Statutory employee: Earnings subject to Social Security and Medicare taxes, but not federal income tax withholding.
- Retirement plan: Indicates participation in any qualified retirement plan.
- Third-party sick pay: Indicates sick pay reported by a third-party payer.
Box 14 – Other
Use this field for additional items not reported elsewhere, such as:
- State disability insurance withheld
- Uniform or union dues
- Educational assistance
- Minister housing allowances
- Health insurance premiums deducted
Each item must be clearly labeled.
Boxes 15–20: State and local information
- Boxes 15–16: State name, employer’s state ID number, and wages subject to state income tax
- Boxes 17–18: State income tax withheld
- Boxes 19–20: Local wages and local income tax withheld
If reporting for more than two states or localities, issue a second W-2.
How Check supports W-2s
Check automatically tracks and records wages and taxes throughout the year. At year-end:
- Check files W-2s with the SSA and any applicable state agencies
- A copy of each W-2 is made available via the Employee Documents API
- Employers and employees can retrieve copies through their Partner’s product interface, depending on implementation
Last updated on June 6, 2025