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Form W-2 (officially, the "Wage and Tax Statement") is an Internal Revenue Service (IRS) tax form used in the United States to report wages paid to employees and the taxes withheld from them. [1] Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship.
Boxes 3 and 4: Social Security Wages and Tax Withheld Boxes 3 and 4 show how much of your wages were subject to Social Security tax and how much tax your employer actually took out of your paycheck.
Number 1A on the 1040 form details your total amount from W-2 income, which will be box 1 on your W-2. Number 25 on the 1040 form details the federal income tax withheld on your W-2 forms.
In 2020, the Social Security Wage Base was $137,700 and in 2021 was $142,800; the Social Security tax rate was 6.20% paid by the employee and 6.20% paid by the employer. [1] [2] A person with $10,000 of gross income had $620.00 withheld as Social Security tax from his check and the employer sent an additional $620.00. A person with $130,000 of ...
FICA taxes are imposed on nearly all workers and self-employed persons. Employers are required [84] to report wages for covered employment to the SSA for processing Forms W-2 and W-3. Some specific wages are not part of the Social Security program (discussed below).
Employers can and do make mistakes on W-2s, and these errors can cost you money as well as time and effort to correct downstream tax ramifications.
Social Security tax is withheld from wages [9] at a flat rate of 6.2% (4.2% for 2011 and 2012 [10]). Wages paid above a fixed amount each year by any one employee are not subject to Social Security tax. For 2023, this wage maximum is $160,200. [11] Medicare tax of 1.45% is withheld from wages, with no maximum. [12] (This brings the total ...
W-2 forms. Tax returns. Wage stubs or pay slips. ... you might not yet have 30 years of earnings in your Social Security record. Your earnings in those years will appear as $0 in your Social ...