Form W-2 Wage and Tax Statement: A Complete Guide for 2020
What Form W-2 Is For
Form W-2 is one of the most important tax documents you'll receive each year. Officially called the "Wage and Tax Statement," this form reports your total earnings from your employer and all the taxes that were withheld from your paychecks during 2020. IRS.gov
Your employer must provide you with a W-2 if any of the following apply:
- They withheld income, Social Security, or Medicare tax from your wages, regardless of the amount
- They paid you $600 or more during the year, even if no taxes were withheld
- They would have withheld income tax if you hadn't claimed exemption on your Form W-4
The W-2 serves multiple critical purposes. It tells you and the IRS exactly how much you earned and how much tax you've already paid. The Social Security Administration uses this information to track your earnings for future Social Security and Medicare benefits. When you file your tax return, the information on your W-2 helps determine whether you'll receive a refund or owe additional taxes. IRS.gov
When You’d Use Form W-2 (Late or Amended Forms)
Standard Timeline
Employers must provide your W-2 by February 1, 2021 (for the 2020 tax year). They must also file copies with the Social Security Administration by the same deadline. IRS.gov
If Your W-2 Is Late or Missing
First, contact your employer to request a copy. If you still don't receive it by mid-February, call the IRS at 800-829-1040. The IRS will contact your employer and send you Form 4852 (Substitute for Form W-2), which you can use to estimate your wages and withholdings if you need to file your return before receiving the actual W-2. IRS.gov
If Your W-2 Is Incorrect
Immediately contact your employer to request a corrected W-2c (Corrected Wage and Tax Statement). Common errors include wrong Social Security numbers, misspelled names, incorrect wages, or wrong tax withholding amounts. Your employer should file the correction with the SSA and provide you with the corrected form as soon as possible. If your employer doesn't provide a corrected W-2 in time for you to file your return, you can use Form 4852 with the correct information. IRS.gov
If You Left Your Job Before Year-End
If your employment ended before December 31, 2020, your employer may furnish your W-2 anytime after employment ends, but no later than February 1, 2021. However, if you request your W-2, the employer must provide it within 30 days of your request or 30 days after your final wage payment, whichever is later.
Key Rules and Requirements for 2020
Employer Requirements
Employers must file a W-2 for every employee who meets the filing threshold. They must submit Copy A to the Social Security Administration and provide employees with Copies B, C, and 2. The forms must be submitted electronically if the employer files 250 or more W-2s. IRS.gov
New for 2020
- SSN Truncation Allowed: For the first time in 2020, employers could truncate (mask) your Social Security number on employee copies by showing only the last four digits (e.g., *--1234). However, they cannot truncate SSNs on the copy filed with the SSA.
- Health FSA Limit: The contribution limit for health flexible spending arrangements was $2,750 for 2020.
- Extended Filing Deadline: While the standard deadline has been February 1, this represents an accelerated timeline compared to previous years when employers had until January 31.
What Must Be Reported
Your W-2 must show:
- Federal wages and income tax withheld (Boxes 1 and 2)
- Social Security wages and tax withheld (Boxes 3 and 4)
- Medicare wages and tax withheld (Boxes 5 and 6)
- Additional Medicare Tax (if applicable—0.9% on wages over $200,000)
- Various codes for retirement plans, benefits, and other compensation in Box 12
Employee Responsibilities
You must use your W-2 to prepare your federal income tax return (Form 1040). Keep your copy for at least four years after filing your taxes, as you may need it for verification purposes or if the IRS has questions about your return.
Step-by-Step Process (High Level)
For Employees
Step 1: Receive Your W-2
By February 1, 2021, check your mail or employee portal for your W-2. Many employers now offer electronic delivery if you've consented to receive it that way. IRS.gov
Step 2: Review for Accuracy
Compare the information on your W-2 to your final paystub of 2020. Verify that your name matches your Social Security card exactly, your SSN is correct, and the wage and tax amounts match your records.
Step 3: Understand the Boxes
Box 1 shows your total taxable wages for federal income tax. Boxes 3 and 5 show wages subject to Social Security and Medicare taxes (these may differ from Box 1 if you have pre-tax deductions). Boxes 2, 4, and 6 show the actual taxes withheld. Box 12 contains coded information about benefits and special payments.
Step 4: Keep All Copies
Don't throw away W-2s if you have multiple jobs. You need every W-2 from every employer during 2020 to file a complete tax return.
Step 5: Use It to File Your Taxes
Enter the information from your W-2 into your tax return software or provide it to your tax preparer. The W-2 data determines your total income and how much tax you've already paid through withholding.
For Employers
Step 1: Prepare Forms
Calculate total wages, tips, and other compensation paid to each employee, along with all taxes withheld throughout 2020.
Step 2: Complete W-2s
Fill out all required boxes accurately. Use 12-point Courier font if possible, black ink only, and avoid dollar signs in money boxes.
Step 3: File with SSA
Submit Copy A of all W-2s along with Form W-3 (transmittal form) to the Social Security Administration by February 1, 2021. E-filing is required if filing 250 or more forms.
Step 4: Distribute to Employees
Provide Copies B, C, and 2 to employees by February 1, 2021. Copy 1 goes to state tax agencies if applicable.
Common Mistakes and How to Avoid Them
According to the IRS, the most frequent W-2 errors include: IRS.gov
- Omitting Decimal Points and Cents – Always include cents in wage and tax amounts, even if it's .00. Write $45,000.00, not $45,000.
- Wrong Social Security Number or EIN – Double-check that you're entering the employee's SSN correctly, not the Employer Identification Number. Also verify employees provide their legal name exactly as it appears on their Social Security card.
- Incorrect Name Formatting – Enter the employee's first name and middle initial in the first box, surname in the second box, and suffix (Jr., Sr., III) in the optional third box.
- Using the Wrong Employer Information – Make sure the employer name and EIN on the W-2 match exactly what's on your quarterly Form 941 or annual Form 944 tax returns.
- Misreporting Taxable Wages – Remember that Box 1 (federal wages) may differ from Boxes 3 and 5 (Social Security and Medicare wages) due to pre-tax deductions like 401(k) contributions, health insurance premiums, or flexible spending accounts.
- Incorrectly Checking the Retirement Plan Box – Only check Box 13's "Retirement plan" checkbox if the employee was an active participant in a retirement plan. Don't check it just because a plan exists or for employees who declined to participate.
- Reporting Medicare Wages Less Than Social Security Wages – Medicare wages (Box 5) should almost always equal or exceed Social Security wages (Box 3) because Medicare tax applies to all wages while Social Security tax has a wage cap. The SSA will reject forms with this error.
How to Avoid These Mistakes
- Use payroll software that auto-populates forms from your payroll records
- Have employees verify their personal information annually
- Review a sample W-2 before printing all forms
- Consider e-filing through the SSA's Business Services Online portal, which catches errors before submission
- Never download Copy A from IRS.gov and print it—the SSA only accepts official red-ink forms or electronic submissions
What Happens After You File
For Employees
After receiving your W-2, you use it to file your federal income tax return (typically Form 1040). The IRS will match the wages and withholding you report on your return against the information your employer submitted. If there's a mismatch, you may receive a notice asking for clarification or correction.
The Social Security Administration posts your earnings to your Social Security record, which determines your future retirement, disability, and survivor benefits. You can check your earnings record at SSA.gov.
If you owe additional taxes beyond what was withheld, you'll pay the difference when you file. If too much was withheld, you'll receive a refund. Most refunds are issued within 21 days for e-filed returns.
For Employers
After filing W-2s with the SSA by February 1, 2021, keep Copy D with your business records for at least four years. The SSA processes the forms and shares tax withholding information with the IRS.
If errors are discovered after filing, you must prepare and submit Form W-2c (Corrected Wage and Tax Statement) to both the SSA and the affected employees. Corrections should be made as soon as errors are identified—you can correct W-2s for the current year or up to three years back. IRS.gov
Potential Penalties
Employers face penalties for late or incorrect W-2s. Penalties increase with delays:
- Filed within 30 days late: Lesser penalty
- Filed after 30 days but by August 1: Higher penalty
- Filed after August 1 or not at all: Maximum penalty
- Intentional disregard: Even higher penalties
Penalties apply per form, so they accumulate quickly for employers with many employees. Electronic filing helps avoid penalties because it's faster and catches errors automatically.
FAQs
Q1: I have two jobs. Will I get two W-2s?
Yes. Each employer must provide you with a separate W-2. You must report income from all W-2s on your tax return. Having multiple W-2s sometimes means you'll owe additional taxes if the combined income pushes you into a higher tax bracket, since each employer withheld taxes based only on what they paid you. IRS.gov
Q2: Why is the amount in Box 1 different from my gross pay on my last paystub?
Box 1 shows your taxable wages for federal income tax purposes. It's often lower than your total gross pay because it excludes pre-tax contributions such as:
- 401(k) or 403(b) retirement plan contributions
- Health insurance premiums
- Flexible Spending Account (FSA) contributions
- Health Savings Account (HSA) contributions
- Commuter benefits
These deductions reduce your current taxable income, which is why they're not included in Box 1.
Q3: My employer went out of business. How do I get my W-2?
Try contacting the business owner, payroll company, or bankruptcy trustee if applicable. If unsuccessful, call the IRS at 800-829-1040 by the end of February. They'll help you obtain wage and tax information. You may need to file your return using Form 4852 (Substitute for Form W-2) with estimates based on your pay stubs. IRS.gov
Q4: Can I file my taxes before receiving my W-2?
No, you should wait. You need the accurate information from your W-2 to file a complete return. Filing without it often leads to errors, processing delays, or IRS notices. If it's late February and you still don't have your W-2, contact the IRS and use Form 4852 to file with estimated amounts.
Q5: What do I do if I receive a corrected W-2c after I've already filed my taxes?
Review the corrected form carefully. If the changes affect your tax return (different wages or withholding), you must file an amended return using Form 1040-X. Attach the new W-2c to your amended return. If the correction doesn't change your tax liability, you may not need to amend, but keep the W-2c with your tax records. IRS.gov
Q6: I lost my W-2. Can the IRS send me a copy?
The IRS cannot provide a copy of your actual W-2 form. However, you can request a wage and income transcript online at IRS.gov or by calling 800-829-1040. This transcript shows wage information reported by your employer. Better yet, contact your employer directly—they can provide a duplicate W-2 much faster.
Q7: What is Box 12 with all those letter codes?
Box 12 reports various types of compensation and benefits using single-letter codes. Common codes include:
- D: 401(k) retirement plan contributions
- DD: Cost of employer-sponsored health coverage (for information only)
- W: Employer contributions to Health Savings Account
- C and F: Group-term life insurance over $50,000
- AA: Roth 401(k) contributions
Most Box 12 amounts are already excluded from Box 1 wages or don't affect your tax return, but they provide the IRS with important information about your benefits and compensation structure.
Additional Resources
All guidance in this summary comes from official IRS sources, particularly the 2020 General Instructions for Forms W-2 and W-3. For questions about your specific situation, visit IRS.gov/FormW2 or call the IRS Information Reporting Customer Service at 866-455-7438 (toll-free). For Social Security earnings questions, visit SSA.gov/employer or call 800-772-6270 (toll-free).
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