Form W-2 (Wage and Tax Statement)

Definition

Form W-2 is the annual statement employers must provide to every employee documenting total wages paid during the tax year, federal and state income tax withheld, FICA contributions, and various other deductions. Employers must file W-2s with the Social Security Administration and provide copies to employees by January 31.

In a PEO arrangement, the PEO is typically the entity listed as the employer on the W-2 (under the PEO's federal EIN). This is a meaningful operational note: employees see the PEO's name as their employer on their tax document, which can require explanation during onboarding.

For Certified PEOs, the W-2 is issued under the CPEO's EIN as the employer of record. Non-certified PEOs sometimes use the client's EIN, sometimes use their own — the specific approach varies.

Common questions about Form W-2 (Wage and Tax Statement)

Related terms

• Form W-4 (Employee's Withholding Certificate) — The IRS form employees complete to tell their employer how much federal income tax to withhold from each paycheck.
• Form 1099 — Annual tax document issued to independent contractors and other non-employees who received payments during the tax year.
• Payroll tax — Any tax assessed on wages — including FICA, FUTA, SUTA, federal/state income tax withholding, and local payroll taxes.

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This is one entry from our PEO glossary covering payroll, benefits, workers comp, HR compliance, and PEO mechanics. Browse all terms.