This article explains the importance of IRS Form W-2, detailing its purpose, filing requirements, and tips for accuracy. It emphasizes the need for timely submission to avoid penalties and highlights the difference between W-2 and W-4 forms. Essential for employers and employees, the W-2 supports proper tax reporting and compliance with IRS regulations.

The IRS Form W-2 is an essential document that employers use to report employee wages, tips, and tax withholdings annually. It provides detailed information on earnings, taxes paid, and contributions such as 401(k) and health savings plans. Employers must accurately prepare and submit W-2 forms for each employee to avoid penalties. This form includes personal data like Social Security numbers and addresses, which need validation before submission. Ensuring timely filing helps maintain compliance and prevents fines.

Employees should verify their W-2 for accuracy and reach out to their employer if any discrepancies arise. Larger companies often submit W-2s electronically. Late submissions can result in penalties between $75 and $500 per form and legal issues. The W-2 differs from the W-4, which employees complete when starting a new job to determine tax withholding. Correctly filled forms are critical for accurate tax reporting and compliance.