With so many things to fill out in Form W-2, you may feel anxious about it. But don’t worry. We will help explain it to you step by step. The form showed nearly every employee’s wages and taxes paid that were filed and is no question a needed form from both the employee’s and the employer’s perspective. With that, let us touch every box in detail so as to make sure that the W-2 is ready, correct with no blunders, and that the tax season can be hassle-free.
How to fill out Form W-2, box by box, and what it all means
Boxes A-F: Key Information
These are merely a few of the first boxes, but they are nevertheless critical in every case. In Box A, the employee’s social security number appears, whereas in Box B, the employer’s EIN is present. Boxes C and F include the addresses of the employer and, respectively, of the employee.
Box 1: Wages, Tips, and Other Compensation
Box 1 represents the total amount of wages the employee has earned that are subject to federal income tax withholding, such as wages, bonuses, and tips. It does not include various pre-tax deductions like retirement contributions, so only taxable earnings will show here.
Box 2: Federal Income Tax Withheld
This box gives the total federal income tax withheld from the employees’ paychecks for the year. If employees wonder whether they will get a refund or owe any tax, Box 2 provides the answer.
Box 3 and 4: Social Security Wages and Tax
Box 3 tells the total amount of the employee’s income that is taxed by the Social Security Tax and is limited to a certain amount each year ($168,600 in 2024). Box 4 indicates the tax withheld about 6.2% of the amount in Box 3.
Box 5 and 6: Medicare Wages and Tax
Box 5 defines wages for the purpose of Medicare tax, which does not have a limit on income. Box 6 describes the amount of Medicare Tax withheld (1.45% of the amount in Box 5).
Last Steps: Confirm and Submit!
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