Form W-2 Wage and Tax Statement 2012: Complete Guide for Employees and Employers
What Form W-2 Is For
Form W-2, Wage and Tax Statement, is the official document that reports your annual wages and the amount of taxes withheld from your paycheck. Every employer who pays you $600 or more during the year (or any amount if taxes were withheld) must provide you with this critical form. Think of it as your annual earnings report card that tells both you and the IRS exactly how much you earned and how much was taken out for federal income tax, Social Security, and Medicare.
The W-2 serves multiple purposes simultaneously. For employees, it's essential for filing your federal tax return—you literally cannot complete your 1040 without the information on your W-2. For the government, it's how the IRS verifies that you're reporting your income correctly, and how the Social Security Administration tracks your lifetime earnings to calculate your future retirement benefits. Each W-2 comes in multiple copies: Copy B goes with your federal tax return, Copy C stays in your personal records, Copy 2 accompanies any state or local tax returns, and Copy A goes directly from your employer to the Social Security Administration.
Even household employers with just one domestic employee must file Form W-2. Whether you're a Fortune 500 company or someone who hired a nanny, the same reporting requirements apply. The form captures not just your base salary but also bonuses, tips, taxable fringe benefits, and various retirement plan contributions.
When You’d Use Form W-2 (Late/Amended)
Standard Deadlines
Under normal circumstances, employers must provide your W-2 by January 31, 2013 (for the 2012 tax year). If you left your job before December 31, 2012, your employer could give you the form anytime after your departure, but still no later than January 31. If you specifically request it, they must provide it within 30 days of your request or 30 days after your final paycheck, whichever comes later.
Corrections (Form W-2c)
Sometimes mistakes happen. If your employer discovers an error in the Social Security number, name spelling, or any dollar amount on your W-2, they must file Form W-2c (Corrected Wage and Tax Statement) with the Social Security Administration. As an employee, if you notice your name, SSN, or address is wrong, you should correct your copies and immediately ask your employer to file a W-2c to fix their records. This matters because errors can affect your Social Security credits and future benefits.
Extensions
Filing extensions work differently for employers and employees. Employers can request an automatic 30-day extension to file W-2s with the SSA by submitting Form 8809 before the original deadline, but this extension doesn't change the January 31 deadline for giving forms to employees. Employers wanting more time to provide copies to employees must write a separate letter to the IRS explaining why they need the extension—it's not automatically granted. Electronic filers automatically receive an extension until April 1, 2013, to submit to the SSA.
If You Never Received a W-2
If you never received your W-2, don't panic. First contact your employer. If that fails, you can request a wage and income transcript from the IRS using Form 4506-T, though getting an actual copy of the W-2 requires Form 4506 and a $30 fee for each return requested.
Key Rules for 2012
The 2012 tax year had several important provisions that employers needed to follow. The employee Social Security tax withholding rate was temporarily reduced to 4.2% (down from the normal 6.2%) for all wage payments made in 2012, as part of economic stimulus measures. This rate applied only to employees—employers still paid their full 6.2% share. The Social Security wage base remained at $110,100, meaning Social Security taxes only applied to the first $110,100 of wages.
A significant new requirement for 2012 was the mandatory reporting of employer-sponsored health coverage costs in Box 12 using code DD. This wasn't taxable to employees—it was purely informational so workers could see the total value of their health benefits. However, transitional relief applied to smaller employers and certain types of plans, so not every W-2 included this information.
Foreign agricultural workers on H-2A visas became subject to W-2 reporting for 2012. Any employer paying $600 or more to H-2A visa agricultural workers had to report that compensation on Form W-2, marking a change in reporting requirements for agricultural employers.
The earned income credit (EIC) notice requirement continued for 2012. If you had no federal income tax withheld from your paycheck, your employer was required to notify you about the EIC—either by using the official IRS Form W-2 with the notice printed on the back of Copy B, or by providing you with Notice 797 explaining that you might qualify for this valuable tax credit. This applied to workers who earned less than $13,980 (single with no children) up to $50,270 (married filing jointly with three or more children).
Step-by-Step (High Level)
How Form W-2 Works
The W-2 process follows a predictable annual cycle. Throughout 2012, your employer withheld federal income tax based on the W-4 form you filled out when you started. They also automatically deducted 4.2% for Social Security (on wages up to $110,100) and 1.45% for Medicare (on all wages, with no cap). Every time you received a paycheck, these withholdings accumulated in your employer's records.
After the calendar year ended on December 31, 2012, your employer's payroll system compiled all your wage and withholding information for the entire year. The system calculated your total wages (Box 1), all federal income tax withheld (Box 2), Social Security wages and taxes (Boxes 3-4), Medicare wages and taxes (Boxes 5-6), and various other items like retirement plan contributions (Box 12) or dependent care benefits (Box 10).
By January 31, 2013, you should have received your W-2 showing these totals. You kept Copy C for your records (for at least 3 years, though keeping it longer helps protect your Social Security benefit claims). You used Copy B when filing your federal Form 1040, 1040A, or 1040EZ tax return. If you lived in a state with income tax, Copy 2 went with your state return.
Meanwhile, your employer sent Copy A directly to the Social Security Administration along with Form W-3, which served as a transmittal sheet summarizing all the W-2s being submitted. Paper filers had to mail these by February 28, 2013, while electronic filers had until April 1, 2013. The SSA processed these forms to update your lifetime earnings record, then shared the tax information with the IRS for verification against your tax return.
Common Mistakes and How to Avoid Them
The IRS identified several recurring errors that delay processing and frustrate everyone involved. One of the most common mistakes is omitting decimals and cents from money amounts. Every dollar figure on Form W-2 must show cents—write "“$45,000.00”" not "“$45,000.”" Another frequent error involves inappropriate equipment: using ink that's too light, or using colored ink instead of black. The Social Security Administration uses machines to scan and read W-2s, and anything other than clear, dark black ink causes processing problems.
Formatting employee names incorrectly trips up many employers. Box e has three separate fields: first name and middle initial go in the first box, surname goes in the second box, and suffix (Jr., Sr., III) goes in the optional third box. Don't run everything together as one continuous name.
The "“Retirement plan”" checkbox in Box 13 gets checked incorrectly more often than it should. Employers should only check this box if the employee was an active participant in certain types of retirement plans during 2012. Simply being eligible for a 401(k) doesn't count—you must have actually participated. This checkbox matters because it affects how much employees can deduct for traditional IRA contributions.
Dollar signs have been removed from Copy A of Form W-2 for a reason—don't add them back in. The form fields are designed to be machine-readable, and adding symbols that aren't supposed to be there interferes with automated processing. Similarly, stapling or taping forms together damages them and prevents the SSA's machines from reading them properly. Always keep forms loose and flat.
Mismatched employer identification numbers (EINs) between Form W-2 and employment tax returns (Forms 941, 943, or 944) cause serious problems. The EIN on your W-2s and W-3 must exactly match the EIN you used when filing quarterly payroll tax returns throughout the year. Discrepancies trigger IRS inquiries.
Using the wrong year's forms might seem obvious, but it happens frequently. Make absolutely certain you're using 2012 forms for 2012 wages—W-2 forms change from year to year, and using old forms causes rejection.
What Happens After You File
For employers, submitting Forms W-2 and W-3 to the Social Security Administration triggers a complex verification process. The SSA scans and reads every form, checking Social Security numbers against their database to ensure they're valid and match the reported names. They update each worker's lifetime earnings record, which determines future Social Security retirement, disability, and survivor benefits. The SSA then shares the wage and tax information with the IRS.
The IRS uses your W-2 data as a cross-check against your tax return. When you file Form 1040 and report wages from your W-2, IRS computers match those figures against what your employer reported. If there's a discrepancy—you reported $50,000 in wages but your employer's W-2 shows $55,000—the IRS will send you a notice asking about the difference. This matching process helps detect underreporting of income and ensures tax return accuracy.
If you're entitled to a refund because your employer withheld more than your actual tax liability, you'll only receive that money by filing a tax return—even if you're not otherwise required to file. The IRS doesn't automatically send refunds just because you had overwithholding. Many workers, especially those eligible for the earned income credit, miss out on refunds by failing to file returns.
Penalties apply when employers file late or incorrectly. The penalty structure depends on how late the forms are. Filing within 30 days after the deadline incurs smaller penalties than filing more than 30 days late. Small businesses with average annual gross receipts of $5 million or less face reduced penalties. Intentional disregard of filing requirements triggers much steeper penalties—$250 per form with no maximum limit.
Employers required to file 250 or more W-2s electronically who instead file on paper face mandatory penalties unless they obtained a waiver using Form 8508. The IRS takes the e-filing requirement seriously because electronic submission dramatically reduces processing errors and costs.
FAQs
Q: Can my employer email me my W-2 instead of mailing a paper copy?
A: Yes, but only if you've specifically consented to receive it electronically. The consent must be truly voluntary—you can't be required to agree as a condition of employment. Your employer must provide clear instructions on how to access the electronic W-2, and the electronic version must contain all the same information as the paper form. You have the right to request a paper copy even after agreeing to electronic delivery. See Publication 15-A for complete details.
Q: I worked for three different employers in 2012 and had over $4,624.20 in Social Security tax withheld. Can I get the excess back?
A: Absolutely. This happens when multiple employers each withhold Social Security tax without knowing about your other jobs. Since Social Security tax only applies to the first $110,100 of wages, once the combined withholding exceeds $4,624.20 (which is 4.2% of $110,100 for 2012), you've overpaid. You claim this excess as a credit directly on your Form 1040, reducing your tax liability or increasing your refund. The IRS doesn't make you contact your employers—you get the money back through your tax return.
Q: My W-2 shows an amount in Box 12 with code DD. Do I have to pay tax on that?
A: No. Code DD reports the total cost of your employer-sponsored health coverage, but this amount is not taxable income. The IRS required this reporting starting in 2012 purely for informational purposes, so you can see the full value of your health benefits package. Don't include this amount when calculating your taxable income—it's already excluded from Box 1.
Q: What should I do if I still haven't received my W-2 by mid-February?
A: First, confirm your employer has your current mailing address. If the address is correct, contact your employer's payroll or HR department directly and request your W-2. If that doesn't work, or if your employer refuses or cannot provide it, call the IRS at 1-800-829-1040. The IRS will contact your employer on your behalf. Have your employer's name, address, phone number, EIN (if you know it), and your dates of employment ready. If the issue isn't resolved in time to file your return by the deadline, you can file using Form 4852, Substitute for Form W-2, to estimate your wages and withholding based on your final pay stub.
Q: My employer went out of business during 2012. Will I still get a W-2?
A: When a business terminates operations, the employer is still required to file all outstanding W-2s. They must provide them to employees within 30 days of making final wage payments. If the business closed and you haven't received your W-2, check whether a bankruptcy trustee is handling the company's affairs—they may be responsible for issuing W-2s. If you can't locate anyone from the company, contact the IRS for assistance in reconstructing your wage information.
Q: I'm a household employee (nanny, caregiver, housekeeper). Should I receive a W-2?
A: If you earned $1,800 or more in cash wages during 2012 from any single household employer (or if your employer withheld any federal income tax), yes, you should receive Form W-2. Household employers must report these wages, withhold Social Security and Medicare taxes, and provide W-2s by January 31, 2013. Many household workers incorrectly receive Form 1099-MISC instead—that's wrong. Household employees are true W-2 employees, and your employer should file Schedule H with their personal tax return to report the employment taxes. Keep your W-2 because it ensures your Social Security and Medicare credits are properly recorded.
Q: What's the difference between Box 1 (wages) and Box 3 (Social Security wages)? Why aren't they the same?
A: These amounts differ because certain types of compensation are treated differently for income tax versus Social Security tax purposes. Box 1 includes all taxable wages for federal income tax—your base pay, bonuses, taxable fringe benefits, etc. Box 3 includes wages subject to Social Security tax, which might be higher or lower than Box 1. For example, your 401(k) contributions reduce Box 1 (because they're not currently taxable for income tax) but are still included in Box 3 (because they're subject to Social Security tax). Conversely, if you earned more than $110,100, only the first $110,100 appears in Box 3, but your full wages appear in Box 1. These differences are normal and proper.
Sources: All information derived from official IRS publications:
