How to fill out a W-2: A box-by-box breakdown

As a small business owner with employees, you understand the importance of filing and paying payroll taxes. When figuring out how to fill out a W-2 form, gather essential information, such as wages and taxes withheld.

The form has around 25 boxes, which might feel a bit overwhelming, but don’t worry—you probably won’t need to fill out every single one. Take a little time to learn the process before you dive in, and you’ll find it much easier.

Jump to:

• How to fill out a W-2 form
• How to file Form W-2
• Why it’s essential to file the right tax forms

How to fill out a W-2 form

As a business owner, it’s your responsibility to make sure W-2 forms are accurate. Any employee you pay will get one of these forms. The W-2 form reports the total wages and compensation for the year to both your employee and the IRS. Your employees will use the W-2 form you provide to prepare their own personal tax returns for the year.

When filling out a Form W-2, make sure that each box on the form contains the correct information. Here’s how to fill out a Form W-2:

• Box A—Employee’s Social Security number: Here, you’ll enter your employee’s nine-digit Social Security number using the XXX-XX-XXXX format. 
• Box B—Employer identification number (EIN): This box is for your nine-digit EIN, which should be in the XX-XXXXXXX format. 
• Box C—Employer’s name, address, and ZIP code: Enter your company’s name and legal address. 
• Box D—Control number: Often left blank unless your company uses control numbers to keep records internally. 
• Box E—Employee’s name: This is the name of your employee. 
• Box F—Employee’s address: Here, you’ll enter the address of your employee. 
• Box 1—Wages, tips, other compensation: The amount you pay your employee that is subject to federal income tax. 
• Box 2—Federal income tax withheld: The amount of federal income tax you withheld from your employee’s wages. 
• Box 3—Social Security wages: This is the total amount you pay your employee that is subject to Social Security taxes. The number should not be more than the Social Security wage base, which was $168,600 for 2024 and will be $176,100 for 2025.
• Box 4—Social Security tax withheld: The amount you withheld from an employee’s Social Security wages. The Social Security tax rate for the employee portion is 6.2%. 
• Box 5—Medicare wages and tips: This is the amount of wages your employee earns that is subject to Medicare taxes. The amount is generally the same as Box 3 unless your employee makes above the Social Security wage base. 
• Box 6—Medicare tax withheld: This is the amount you withheld for Medicare taxes. The Medicare tax rate for the employee portion is 1.45%. Note that if your employee earns above a certain amount, they will pay an additional Medicare tax of 0.9%. 
• Box 7—Social Security tips: If your employee earns tips, you will enter them here, but note the total of boxes 3 and 7 cannot be more than the Social Security wage base. 
• Box 8—Allocated tips: This is the amount of tips you designate to tipped employees. Allocated tips are not part of the employer's taxable income but may be taxable to the employee. You should not include them in Boxes 1, 3, 5, or 7. 
• Box 9—Blank: Leave this box blank. 
• Box 10—Dependent care benefits: If you gave your employee dependent care benefits as part of a dependent care assistance program, you will enter that amount here. 
• Box 11—Nonqualified plans: This is the amount of distributions from nonqualified deferred compensation plans like Supplemental Executive Retirement Plans (SERPs) that an employee receives.
• Box 12: There are four boxes (although you can have more) that allow you to enter a code and a relevant amount. There are several codes you may need to use, such as code D for 401(k) contributions. 
• Box 13—Various checkboxes: There are three checkboxes to indicate whether the employee is a statutory employee, has a retirement plan, or earned third-party sick pay. Statutory employees are independent contractors who are treated as employees due to certain exemptions. Third-party sick pay is a disability benefit that insurance companies pay in case workers miss time due to a nonwork-related injury.
• Box 14—Other: Here, you will report other payments or deductions, such as health insurance premiums deducted or vehicle lease payments made on the employee’s behalf. 
• Box 15—Employer’s state ID number: This is your state-specific ID number, also known as your state EIN.
• Box 16—State wages, tips, etc: This is the amount of employee wages subject to income tax, which may differ from Box 1. 
• Box 17—State income tax: The amount of money you withheld from your employee’s wages for state income taxes. Leave blank if no state income tax was withheld. 
• Box 18—Local wages, tips, etc: This is the amount subject to local income tax, which can differ from boxes 1 and 16. If the employee works in a locality that has no income tax, this will be blank. 
• Box 19—Local income tax: Leave blank unless you withheld any amount from your employee’s wages for local income tax 
• Box 20—Locality name: This is the name of your city or other locality.

How to file Form W-2

Once you fill out all your W-2 forms, you’re ready to file them with the Social Security Administration (SSA), as well as send copies to employees. The due date for filing your W-2 forms is January 31. 

You can file your W-2 forms with the SSA online or mail them in. If you do decide to submit a hard copy, you can order the forms from the IRS website. 

You’ll fill out multiple copies of the form: 

• Copy A goes to the SSA
• Copy 1 goes to the state, city, or local tax department
• Copy B is for your employee to file with their Federal tax return 
• Copy C is for your employee to keep for their records 
• Copy 2 is for your employee to file with their state, city, or local tax return 
• Copy D is for your (the employer’s) records 

You must file W-2 forms if you withhold any income, Social Security, or Medicare taxes from wages, regardless of the amount of wages. You can mail or electronically send W-2 forms to your employees.

Why it’s essential to file the right tax forms

A misclassification of workers, whether it be accidental or intentional, could have severe implications. If you do discover an error, you’ll need to complete IRS Form SS-8. You’ll need to file one of these forms for each one of the misclassified workers.

After receiving the form, the IRS will levy any taxes. You may need to pay wages to employees retroactively for up to three years, along with penalties such as a $50 fine per misclassified employee, as well as substantial civil and criminal penalties, which may even include jail time.

Special considerations for Form W-2

Understanding the following tax complexities is essential for ensuring compliance with IRS regulations and maintaining employee trust.

Penalties

When employers fail to file their Form W-2s accurately or on time, they may incur penalties from the IRS. These penalties vary depending on how late the W-2 is filed and can escalate quickly.

The IRS imposes the following penalties for late submissions:

• $60 per form if you file up to 30 days after the due date 
• $130 per form if over 30 days late but before Aug 2 
• $330 per form after Aug 1 or if you don’t file at all
• $660 per form for intentionally disregarding filing requirements 

Filing extensions

To avoid penalties, file your W-2 accurately and by the January 31st deadline. If necessary, you can request a 30-day extension by submitting Form 8809. However, the IRS only grants extensions in extraordinary circumstances or catastrophes.

Correcting wage reports

If an employer discovers errors on a previously filed W-2, such as an incorrect name or Social Security number, correct them promptly to avoid issues for both the employer and the employee.

To e-file your corrections, use Business Services Online (BSO) to create, save, print, and submit Forms W-2c online for the current year and prior years. After logging in, navigate to the Electronic Wage Reporting home page and select the "Forms W-2c/W-3c Online" tab. See E-filing and E-filing Forms W-2c and W-3c for more information.

The employer should provide a copy of the corrected form to the employee to ensure they have accurate information for their tax returns.

Find peace of mind come tax time

Hiring employees can bring many benefits, but it also comes with the responsibility of managing payroll taxes. Knowing how to fill out W-2 and 1099 forms is essential for compliance and avoiding potential penalties.

By using payroll software like QuickBooks Payroll, you can automate the process and ensure accurate tax filings.

QuickBooks Online Payroll & Contractor Payments: Money movement services are provided by Intuit Payments Inc., licensed as a Money Transmitter by the New York State Department of Financial Services, subject to eligibility criteria, credit, and application approval. For more information about Intuit Payments Inc.’s money transmission licenses, please visit https://www.intuit.com/legal/licenses/payment-licenses/