Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. An employer must mail out the Form W-2 to employees on or before January 31. This deadline gives w5 tax form 2016 pdf taxpayers about 2 months to prepare their returns before the April 15 income tax due date.
The Form W-2, along with Form W-3, generally must be filed by the employer with the Social Security Administration by the end of February. In territories, the W-2 is issued with a two letter code indicating which territory, such as W-2GU for Guam. If corrections are made, it can be done on a W-2c. Form W-2 includes wage and salary information as well as federal, state, and other taxes that were withheld. When an employee prepares their individual tax return for a tax year, the withholding amount from Form W-2 is subtracted from the tax due. It is possible to receive a refund from the IRS if more income was withheld than necessary.
Since the IRS receives a copy of the W-2 from the employer, if the amount reported on the W-2 does not match the amount reported on Form 1040, the IRS may get suspicious. In addition, if an individual does not pay the required amount of taxes, the IRS will also know this. In this way, the IRS uses Form W-2 as a way to track an employee’s tax liability, and the form has come to be seen as a formal proof of income. Form W-2 as proof of income. The employee receives three copies of Form W-2: one for the record, one for the federal tax return, and one for the state tax return. Employees are required to report their wage, salary, and tip income even if they don’t receive a Form W-2 for it.