What Is a W-2 Form? Wage Reporting for Employees 2026

Form W-2, Wage and Tax Statement, is the form a US employer files for each employee to report the wages paid in a calendar year and the income, social security and Medicare tax withheld. For 2026 wages, the IRS's 2026 instructions say: "Generally, you must furnish Copies B, C, and 2 of Form W-2 to your employees by February 1, 2027." Copy A goes to the Social Security Administration (SSA) by the same date. These are US federal rules; ask your accountant or payroll provider how they apply to you.

Billed publishes this page. The rules are quoted from the IRS General Instructions for Forms W-2 and W-3 (2026) (last reviewed or updated April 30, 2026) and the IRS page About Form W-2, Wage and Tax Statement (last reviewed or updated September 11, 2026), both opened on October 30, 2026. This page isn't tax advice.

Who Gets a W-2 (US, 2026)

The 2026 instructions say: "You must file Form(s) W-2 if you have one or more employees to whom you made payments (including noncash payments) for the employees’ services in your trade or business during 2026." They list when a W-2 is needed for an employee:

• "You withheld any income, social security, or Medicare tax from wages regardless of the amount of wages."
• "You would have had to withhold income tax if the employee had claimed no more than one withholding allowance (for 2019 or earlier Forms W-4) or had not claimed exemption from withholding on Form W-4."
• "You paid $2,000 or more in wages even if you did not withhold any income, social security, or Medicare tax."

On the $2,000 figure, the instructions say: "For wages paid after calendar year 2025, P.L. 119-21 increases the wage reporting threshold from $600 to $2,000 if no federal income, social security, or Medicare tax was withheld."

A W-2 is for employees. Payments to independent contractors are covered in what is a 1099 form and Form W-9.

Deadlines for 2026 Forms W-2 (US)

The 2026 instructions say:

• Employees: "Generally, you must furnish Copies B, C, and 2 of Form W-2 to your employees by February 1, 2027."
• SSA: "Mail or electronically file Copy A of Form(s) W-2 and Form W-3 with the SSA by February 1, 2027. You may owe a penalty for each Form W-2 that you file late."
• Employees who leave: "If employment ends before December 31, 2026, you may furnish copies to the employee at any time after employment ends, but no later than February 1, 2027."
• Extensions: "Even if you request and are granted an extension of time to file Forms W-2, you must still furnish Forms W-2 to your employees by February 1, 2027."
• E-filing: to decide whether you must e-file, the instructions say to "add together the number of information returns (see the list below) and the number of Forms W-2 you must file in a calendar year. If the total is at least 10 returns, you must e-file them all." The list includes "the Form 1099 series".
• Your copies: "Make a copy of Form W-3 and a copy of each Form W-2 Copy A (For SSA) to keep for your records for at least 4 years."

What Boxes 1, 3 and 5 Show (US, 2026)

• Box 1, wages, tips, other compensation: "Show the total taxable wages, tips, and other compensation that you paid to your employee during the year. However, do not include elective deferrals (such as employee contributions to a section 401(k) or 403(b) plan) except section 501(c)(18) contributions."
• Box 3, social security wages: "Show the total wages paid (before payroll deductions) subject to employee social security tax but not including social security tips and allocated tips." The instructions add: "Report in box 3 elective deferrals to certain qualified cash or deferred compensation arrangements and to retirement plans described in box 12 (codes D, E, F, G, and S) even though the deferrals are not includible in box 1." For 2026: "The total of boxes 3 and 7 cannot exceed $184,500 (2026 maximum social security wage base)."
• Box 5, Medicare wages and tips: "The wages and tips subject to Medicare tax are the same as those subject to social security tax (boxes 3 and 7) except that there is no wage base limit for Medicare tax."
• Box 12, code D: "Elective deferrals under a section 401(k) cash or deferred arrangement (plan)." For box 12 amounts, the instructions say: "Use decimal points but not dollar signs or commas."

Worked Example (sample figures, tax year 2026)

These are sample figures for a fictional employee, invented for this example. The employee earns $52,000.00 in 2026 before payroll deductions and puts $4,000.00 into a 401(k) plan as elective deferrals. The sample has no tips and no other payroll deductions that change these boxes.

• Box 1: $52,000.00 − $4,000.00 = $48,000.00, because box 1 leaves out the elective deferrals.
• Box 3: $52,000.00, because box 3 includes the elective deferrals, and $52,000.00 is under the $184,500 wage base for 2026.
• Box 5: $52,000.00, the same as box 3, because Medicare has no wage base limit.
• Box 12: code D with 4000.00.
• Difference between box 1 and box 3: $52,000.00 − $48,000.00 = $4,000.00, the elective deferrals.

This is why box 1 can be lower than the pay an employee expects. Real W-2 figures come from your payroll records; ask your payroll provider or accountant.

Correcting a W-2 (US)

The 2026 instructions say: "Use the current version of Form W-2c to correct errors (such as incorrect name, SSN, or amount) on a previously filed Form W-2 or Form W-2c. File Copy A of Form W-2c with the SSA."

Related Forms

• Form W-4: the IRS calls it "Form W-4, Employee's Withholding Certificate". It's a separate form from the W-2; see what is a W-4 form.
• Payroll tax returns: the instructions say: "Be sure that the payer’s name and EIN on Forms W-2 and W-3 are the same as those used on the Form 941, Employer’s QUARTERLY Federal Tax Return", or the other employment tax returns they list. See what is payroll tax.
• Hiring: see how to hire your first employee.

When This Guide Isn't for You

If you have household employees, agricultural workers, employees in a US territory, third-party sick pay or an IRS or SSA notice, the instructions have separate rules; ask a payroll professional.

Related Guides

• What is a W-4 form?
• What is payroll tax?
• What is a 1099 form?
• How to hire your first employee

FAQ

When are 2026 W-2 forms due?

The IRS's 2026 instructions say: "Generally, you must furnish Copies B, C, and 2 of Form W-2 to your employees by February 1, 2027." Copy A and Form W-3 go to the SSA by February 1, 2027.

Who needs a W-2?

The 2026 instructions say a W-2 is needed for each employee when, among other cases, "You withheld any income, social security, or Medicare tax from wages regardless of the amount of wages" or "You paid $2,000 or more in wages even if you did not withhold any income, social security, or Medicare tax."

Why is box 1 lower than box 3?

Box 1 leaves out elective deferrals such as 401(k) contributions, and box 3 includes them. In this page's 2026 sample, $4,000.00 of 401(k) deferrals makes box 1 $48,000.00 and box 3 $52,000.00.

How do I correct a W-2?

The 2026 instructions say: "Use the current version of Form W-2c to correct errors (such as incorrect name, SSN, or amount) on a previously filed Form W-2 or Form W-2c."