Form W-2 Wage and Tax Statement 2015: Complete Guide

What Form W-2 Is For

Form W-2, officially called the "Wage and Tax Statement," is the document your employer must give you every year that shows how much money you earned and how much was withheld from your paycheck for taxes. Think of it as your official receipt for the year's work and tax payments.

Every employer engaged in business must file a Form W-2 for each employee if they paid $600 or more during the year, or if any income, Social Security, or Medicare tax was withheld—even if the total wages were less than $600. This includes cash payments, benefits, and other forms of compensation. The form serves multiple purposes: your copy helps you file your personal tax return, the Social Security Administration uses it to track your future benefits, and the IRS uses it to verify that you and your employer reported income correctly.

For 2015, the form includes important information in numbered boxes: your total wages (Box 1), federal income tax withheld (Box 2), Social Security wages (Box 3) and taxes (Box 4), Medicare wages (Box 5) and taxes (Box 6), plus details about tips, benefits, and other compensation. You'll receive multiple copies: Copy B for filing your federal tax return, Copy C for your personal records, and Copy 2 for your state tax return.

When You’d Use It (Including Late and Amended Forms)

Standard Timeline

Employers must provide Form W-2 to employees by February 1, 2016 (for the 2015 tax year). If you file paper forms with the Social Security Administration, the deadline is February 29, 2016; electronic filers get until March 31, 2016.

If Employment Ends Early

If you stopped working before December 31, 2015, your employer can give you the W-2 anytime after your last day, but no later than February 1, 2016. If you specifically request your W-2 after leaving, your employer must provide it within 30 days of your request or within 30 days of your final paycheck, whichever comes later.

Missing W-2

If you don't receive your W-2 by mid-February, first contact your employer. If that doesn't work, you can get a wage and income transcript from the IRS showing the federal tax information your employer reported to the Social Security Administration by visiting the IRS Get Your Tax Records page or using Form 4506-T, Request for Transcript of Tax Return.

Corrected Forms (W-2c)

If your employer discovers an error on your original W-2—whether it's your name, Social Security number, wage amounts, or tax withholdings—they must file Form W-2c (Corrected Wage and Tax Statement) with the Social Security Administration and provide corrected copies to you. Common reasons for corrections include mathematical errors, wrong Social Security numbers, or incorrect reporting of taxable wages. Employers should file corrections as soon as errors are discovered.

Extensions

Employers can request an automatic 30-day extension to file with the SSA by submitting Form 8809 before the original due date. To request an extension to furnish Forms W-2 to employees (which is not automatically granted), employers must send a letter to the IRS including their name, address, EIN, reason for delay, and signature. The maximum extension for employee copies is 30 days if approved.

Key Rules and Requirements for 2015

Employer Obligations

Employers must withhold federal income tax, Social Security tax (6.2% on wages up to $118,500), and Medicare tax (1.45% on all wages) from employee paychecks. For 2015, employers also must withhold an Additional Medicare Tax of 0.9% on wages exceeding $200,000 for any individual employee—this additional tax applies only to employees, not employers.

Electronic Filing Requirement

Employers filing 250 or more Forms W-2 must file electronically with the Social Security Administration. Paper filers can submit forms by mail, but electronic filing offers benefits like automatic Form W-3 generation, faster processing, and reduced errors. The SSA encourages all employers to use their Business Services Online (BSO) system for free electronic filing. Employers who are required to e-file but fail to do so may face penalties.

Health Coverage Reporting

For 2015, employers generally must report the cost of employer-sponsored health coverage in Box 12 using code DD. However, transitional relief applied to certain smaller employers and specific plan types.

Special Situations for 2015

Virtual currency payments (such as Bitcoin) are treated as wages subject to federal income tax withholding, FICA tax, and FUTA tax and must be reported on Form W-2. Same-sex spouses are considered married for federal tax purposes if they were lawfully married in a state or foreign country that authorizes same-sex marriage, regardless of where they currently live. Military spouses may claim residence in their home state under the Military Spouses Residency Relief Act, affecting which state taxes apply. Medicaid waiver payments may be excludable from income for certain care providers.

Record Retention

Employers must keep Copy D of Forms W-2 with their records for at least 4 years. Employees should keep Copy C of Form W-2 for at least 3 years after the due date for filing their income tax return, though keeping it longer helps protect social security benefits verification.

Step-by-Step Guide (High Level)

For Employees

• Receive Your W-2: You should get your W-2 by February 1, 2016. Review it immediately for accuracy—check your name, Social Security number, address, and all dollar amounts.
• Verify the Information: Compare Box 1 (wages) with your final pay stub from December 2015. Make sure the federal income tax withheld (Box 2) matches what your pay stubs show. Check that Social Security and Medicare wages and taxes are reasonable.
• Report Errors Quickly: If anything looks wrong, contact your employer's payroll or HR department right away. They need to file a corrected W-2c if there are mistakes.
• Use It to File Your Tax Return: When preparing your 2015 tax return (Form 1040, 1040A, or 1040EZ), enter the information from your W-2. Box 1 goes on the wages line, Box 2 shows your federal tax already paid, and Boxes 3-6 provide Social Security and Medicare information.
• Keep It Safe: Store Copy C with your important tax documents for at least 3 years, though keeping it longer is advisable for protecting your social security benefits.

For Employers

• Collect Employee Information: Ensure you have accurate names, Social Security numbers, and addresses for all employees who earned $600 or more (or had any taxes withheld). Verify Social Security numbers directly from employees' Social Security cards—never accept an Individual Taxpayer Identification Number (ITIN) in place of an SSN.
• Calculate Totals: For each employee, total their wages, tips, federal income tax withheld, Social Security wages and tax, Medicare wages and tax, and any other compensation or benefits reportable in Box 12.
• Complete the Forms: Fill out Form W-2 for each employee, using 12-point Courier font if possible, black ink only, and no dollar signs in the amount boxes. Don't fold, staple, or use correction fluid on Copy A (the version sent to the SSA).
• Distribute to Employees: Provide Copies B, C, and 2 to each employee by February 1, 2016. You can mail them (requirement met if properly addressed and mailed on or before the due date) or deliver them electronically if the employee consents.
• File with Government Agencies: Submit Copy A of all Forms W-2 along with Form W-3 (transmittal form) to the Social Security Administration by February 29, 2016 (paper) or March 31, 2016 (electronic). Send Copy 1 to your state, city, or local tax department if required.

Common Mistakes and How to Avoid Them

Wrong or Missing Social Security Numbers

This is one of the most critical errors. Always verify Social Security numbers directly from employees' Social Security cards. The SSA will reject forms with missing or obviously incorrect SSNs, causing processing delays that can affect employee tax refunds and Social Security benefit credits. Never accept an Individual Taxpayer Identification Number (ITIN) in place of an SSN for employee reporting—ITINs are 9-digit numbers beginning with "9" with either a "7" or "8" as the fourth digit and are only for people not eligible for U.S. employment.

Mathematical Errors in Wage Reporting

The SSA automatically rejects forms where Medicare wages are less than the sum of Social Security wages and Social Security tips, or where Social security tax is greater than zero but Social Security wages and tips equal zero, or where Medicare tax is greater than zero but Medicare wages and tips equal zero. Double-check these relationships before filing.

Omitting Decimal Points and Cents

Always include decimal points and cents in all dollar amounts (for example, write "45000.00" not "45000"). Forms without proper decimal formatting can be rejected or misread by SSA scanning equipment.

Incorrect Ink and Font

Use only black ink for entries. Making entries using ink that is too light causes processing problems. If possible, use 12-point Courier font. Don't make entries that are too small or too large.

Adding Dollar Signs

Don't add dollar signs to the money-amount boxes—they have been removed from Copy A and are not required.

Retirement Plan Checkbox Errors

Don't inappropriately check the "Retirement plan" checkbox in box 13. Consult the specific instructions to determine when this box should be checked.

Name Formatting Errors

Enter the employee's first name and middle initial in the first box, surname in the second box, and suffix (such as "Jr.") in the third optional box. Misformatting causes processing delays.

Physical Form Damage

Don't cut, fold, or staple Copy A paper forms mailed to the SSA. These forms are machine-scanned, and any physical damage interferes with processing. Prepare and file Forms W-2 either alphabetically by employees' last names or numerically by employees' Social Security numbers.

Using Downloaded Copy A Forms

Don't download Copy A of Forms W-2 from IRS.gov and mail them to the SSA. The SSA accepts only e-filed reports and the official red-ink versions (or approved substitute versions) of these forms.

What Happens After You File

For Employees

After you receive your W-2, use it to complete your federal (and state/local if applicable) income tax returns, reporting wages, tips, other compensation, and withholdings. The IRS uses your Social Security number on the W-2 to match the payments your employer reports against the amounts shown on your tax return. The SSA uses your SSN to record your earnings for future social security and Medicare benefits.

If you lose your W-2, contact your employer to request a reissued statement. Your employer must provide a new copy marked "REISSUED STATEMENT" and does not send another Copy A to the SSA. Keep undeliverable Forms W-2 for 4 years if you're an employer, though if the undelivered form can be produced electronically through April 15th of the fourth year after the year at issue, you don't need to keep the paper copies.

For Employers

After filing Forms W-2 and W-3, the SSA processes the forms and distributes the information to the IRS and state tax agencies. Keep proof of filing for at least 4 years. If the SSA identifies errors, you'll receive a notice requesting corrections. Respond promptly by filing Form W-2c with corrected information along with Form W-3c.

Penalties

You may face penalties if you fail to file correct Forms W-2 by the due date and cannot show reasonable cause. Penalties apply for failing to file timely, including incorrect information, filing on paper when required to e-file, reporting incorrect or missing taxpayer identification numbers, or failing to file machine-readable forms. The penalty amounts for 2015 are:

• $30 per form if correctly filed within 30 days of the due date (maximum $250,000 per year; $75,000 for small businesses)
• $60 per form if filed more than 30 days late but by August 1 (maximum $500,000 per year; $200,000 for small businesses)
• $100 per form if filed after August 1 or not filed (maximum $1,500,000 per year; $500,000 for small businesses)
• At least $250 per form with no maximum penalty if the failure is due to intentional disregard

Similar penalties apply for failing to provide correct payee statements to employees by the required due date.

FAQs

What if I worked for multiple employers in 2015?

You'll receive a separate W-2 from each employer. Include all of them when filing your tax return. If you worked for more than one employer during 2015 and more than $7,347 in social security tax was withheld, you can claim a refund of the excess on your Form 1040, Form 1040A, or Form 1040NR.

My W-2 has the wrong address. What should happen?

If the address was incorrect on the Form W-2 furnished to you, your employer must either (1) issue a new, corrected Form W-2, (2) issue a Form W-2c, or (3) reissue the Form W-2 with the incorrect address to you in an envelope showing the correct address or otherwise deliver it to you.

What if my employer made an error after giving me the W-2 but before filing with the SSA?

Your employer should check the "Void" box at the top of the incorrect Form W-2 on Copy A, prepare a new Form W-2 with correct information, send Copy A to the SSA, and write "CORRECTED" on your new copies (B, C, and 2). They should not write "CORRECTED" on Copy A of Form W-2.

When should Form W-2c be filed?

Employers should file Forms W-2c and W-3c as soon as possible after discovering an error. They should also provide Form W-2c to employees as soon as possible. Form W-3c must be filed whenever a Form W-2c is filed with the SSA, even if only correcting an employee's name or SSN.

Can my employer use a reporting agent or payroll service?

Yes, but use of a reporting agent or other third-party payroll service provider does not relieve an employer of the responsibility to ensure that Forms W-2 are furnished to employees and that Forms W-2 and W-3 are filed with the SSA, correctly and on time.

What if I need to report Archer MSA contributions?

Employers must report all employer contributions to an Archer MSA in box 12 of Form W-2 with code R. Employer contributions that are not excludable from the employee's income must also be reported in box 1. Employee contributions are includible in income as wages and are subject to federal income tax withholding and social security and Medicare taxes.

Are severance payments subject to employment taxes?

Yes. Severance payments are wages subject to social security and Medicare taxes, income tax withholding, and FUTA tax.

Source: This guide is based exclusively on official IRS publications: 2015 General Instructions for Forms W-2 and W-3 and Form W-2 (2015) from IRS.gov.