What are the key boxes?
| Box | What it shows |
|---|---|
| 1 | Wages subject to federal income tax |
| 2 | Federal income tax withheld |
| 3 and 4 | Social Security wages, up to $184,500 for 2026, and tax withheld |
| 5 and 6 | Medicare wages and tax withheld |
| 12 | Coded items, such as 401(k) deferrals and the cost of employer health coverage |
| 13 | Checkboxes, such as retirement plan participation |
| 15 to 17 | State wages and state tax withheld |
Box 1 is often lower than boxes 3 and 5, because pre-tax retirement deferrals reduce income tax wages but not Social Security and Medicare wages.
What is new for 2026?
Under the 2025 tax law, employees can deduct certain qualified tips and overtime pay for 2025 to 2028. Employers must report those amounts separately to employees. Follow the 2026 Form W-2 instructions for where and how to report them.
How are S corporation owners handled?
Health insurance premiums paid for a shareholder owning more than 2% go in box 1, but not in boxes 3 and 5. Getting this wrong can cost the owner the self-employed health insurance deduction. See S corp owner payroll.
How do you prepare and file them?
Reconcile payroll to the 941s
Wages and taxes for the year should match the four quarterly returns.
Check each employee's details
Name and Social Security number exactly as on their card.
Prepare the W-2s and W-3
Through payroll software or the SSA's online service.
Give employees their copies
By January 31, on paper or electronically with their consent.
File with the SSA
By January 31; e-file if you have 10 or more information returns in total.
What about state copies?
Most states with an income tax require their own copy of each W-2, filed with the state tax agency, often with its own deadline and transmittal. Many payroll services file them automatically. Check each state where you withheld tax.
Can you give employees their W-2s electronically?
Yes, if each employee has consented to electronic delivery, after being told how to get a paper copy and how long the form will be available. Without consent, give or mail a paper copy by January 31.
Do contractors get a W-2?
No. Independent contractors get Form 1099-NEC instead. Treating an employee as a contractor to avoid W-2s and payroll tax is a costly mistake. See independent contractor or employee.
How do you correct a W-2?
File Form W-2c with the SSA and give the employee a copy, with Form W-3c as the transmittal. Do not issue a second original W-2.
What about employees who are non-residents?
Wages for work performed in the US are reported on Form W-2, even for non-resident employees, unless exempt under a treaty, in which case they go on Form 1042-S instead. Pay for work done entirely outside the US by a non-resident is foreign-source and generally not reported on a W-2. See Forms 1042 and 1042-S and non-resident salary from a US company.
What are the penalties?
Late or incorrect W-2s carry per-form penalties for both the SSA filing and the employee copies, rising the later you file, with higher penalties for intentional disregard. No automatic extension is available for W-2s; extensions are granted only for limited reasons on request. See business tax deadlines.
Want your W-2s done right?
We prepare and e-file your W-2s and W-3, reconcile them to your 941s, and handle owner health insurance correctly.
Questions people ask
When are Forms W-2 due?
January 31, both to employees and to the Social Security Administration.
What is Form W-3?
The summary transmittal filed with the W-2s, totalling all employees' wages and taxes.
Why is box 1 lower than box 3 on my W-2?
Pre-tax retirement deferrals reduce federal income tax wages but not Social Security wages.
How do I correct a W-2 after filing?
File Form W-2c with Form W-3c, and give the employee a copy.
Sources
Every fee, date and rule on this page was taken from these official and primary sources.
- IRS: About Form W-2
- Social Security Administration: Business Services Online
- IRS: General Instructions for Forms W-2 and W-3
- Social Security Administration: Contribution and benefit base, 2026
Rules and fees change. If you are reading this long after October 1, 2026, confirm the figures with the source before you rely on them.
Related guides
More in Federal tax forms
This guide is general information. It is not tax or legal advice for your situation.