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The W-2 Form, also known as the Wage and Tax Statement, is one of the most important tax documents in the United States. It is used by employers to report employee earnings and taxes withheld throughout the year.
Whether you’re an employer, entrepreneur, or employee, understanding this form is essential for meeting tax obligations and avoiding penalties.
The W-2 Form is issued by employers to their employees to report:
Employees use this form to complete their tax returns. By law, it must be delivered by January 31 each year.
The form contains critical details, such as:
Although both forms report income, they serve different purposes:
If you hire both employees and freelancers, ensure you issue the correct form. More details are available in our blog: 1099 Form: What It Is and How to File It.
The W-2 Form must be sent to your employees and filed with the IRS and Social Security Administration. Here are the key steps:
Our team is here to assist you at every step, ensuring data accuracy and compliance with IRS and Social Security regulations. We handle the entire process so you can focus on growing your business.
To avoid penalties, adhere to these deadlines:
Check more important dates here: Tax Deadlines for 2025.
Failing to meet deadlines can result in penalties ranging from $50 to $290 per form, depending on the delay. Fines may be higher if intentional negligence is proven.
The W-2 Form is an essential component of tax compliance in the United States. Both employers and employees must ensure its correct issuance and filing. If you need assistance managing your tax obligations, Prodezk’s expert team is here to guide you through every step of the process.
Learn more about optimizing your tax compliance here!
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