How to Fill Out a W-2 for Your First Employee
Congratulations on hiring your first employee! Now comes the paperwork. This guide walks you through every box on the W-2 form so you can file correctly and avoid IRS penalties.
January 31, 2026
Deadline to give W-2 to employees
6 Copies Required
Employee, SSA, state, and your records
$50-$290 Penalty
Per form for late or incorrect filing
What You Need Before Starting
Before you fill out the W-2, gather these documents and information:
Your Business Information
- Employer Identification Number (EIN)
- Legal business name and address
- State employer ID number (if applicable)
Employee Information
- Social Security number (from W-4)
- Full legal name and current address
- Completed Form W-4 on file
Payroll Records
- Total wages paid during the year
- Federal income tax withheld
- Social Security and Medicare taxes withheld
Benefits & Deductions
- Retirement plan contributions (401k, etc.)
- Health insurance premiums (if pre-tax)
- State and local taxes withheld
Don't have all this information organized? Your paystubs contain year-to-date totals for all these categories. If you've been generating paystubs throughout the year, you already have what you need.
W-2 Box-by-Box Instructions
Follow these instructions to fill out each box correctly
Form W-2 Wage and Tax Statement 2025
Copy A — For Social Security Administration
a
Employee's SSN
b
Employer's EIN
c
Employer's name, address, ZIP
e & f
Employee's name and address
1
Wages, tips, other comp.
2
Federal income tax withheld
3
Social Security wages
4
Social Security tax withheld
5
Medicare wages and tips
6
Medicare tax withheld
15
State / Employer's state ID
16-17
State wages / State tax
1Employer Information (Boxes a-c)
Box a: Employee's Social Security Number
Enter your employee's 9-digit SSN exactly as shown on their Social Security card. Format: XXX-XX-XXXX
Box b: Employer Identification Number (EIN)
Your business's 9-digit EIN. Format: XX-XXXXXXX. Don't have one? Apply for an EIN.
Box c: Employer's Name, Address, and ZIP Code
Your legal business name and mailing address. Use the same name you used when applying for your EIN.
2Employee Information (Boxes e-f)
Box e: Employee's Name
Full legal name exactly as shown on their Social Security card. First name, middle initial, last name.
Box f: Employee's Address
Current mailing address including street, city, state, and ZIP code.
3Wages and Taxes (Boxes 1-6)
Box 1: Wages, Tips, Other Compensation
Total taxable wages paid during the year. This is gross wages minus pre-tax deductions (401k, health insurance, FSA). This is the amount subject to federal income tax.
💡 This should match the YTD Gross on your employee's final paystub of the year (minus pre-tax deductions).
Box 2: Federal Income Tax Withheld
Total federal income tax you withheld from the employee's paychecks throughout the year. This is based on their W-4 selections.
Box 3: Social Security Wages
Total wages subject to Social Security tax. Usually the same as Box 1, but capped at $168,600 for 2025 (the wage base limit).
Box 4: Social Security Tax Withheld
Total Social Security tax withheld. Should be Box 3 × 6.2% (maximum $10,453.20 for 2025).
Box 5: Medicare Wages and Tips
Total wages subject to Medicare tax. Usually the same as Box 1. No wage cap for Medicare.
Box 6: Medicare Tax Withheld
Total Medicare tax withheld. Should be Box 5 × 1.45%. Additional 0.9% on wages over $200,000.
4State and Local Taxes (Boxes 15-20)
Box 15: State / Employer's State ID Number
Two-letter state abbreviation and your state employer ID number. This is different from your federal EIN.
Box 16: State Wages, Tips, etc.
Total wages subject to state income tax. Often the same as Box 1.
Box 17: State Income Tax
Total state income tax withheld. Leave blank if your state has no income tax (e.g., TX, FL, WA).
Boxes 18-20: Local Taxes
For cities or localities that impose income tax. Only fill in if applicable to your location.
Skip the manual work — our W-2 generator fills in all boxes automatically
Generate W-2 AutomaticallyW-2 Deadlines You Can't Miss
January 31, 2026
Deadline to give W-2 to employees. Must be postmarked, hand-delivered, or electronically available by this date. Also the deadline to file with SSA.
Jan 31
February 28, 2026 (Paper Filing)
If you're filing paper W-2s with the SSA (fewer than 250 forms), this is the mailing deadline. Electronic filing is strongly recommended.
Feb 28
March 31, 2026 (Electronic Filing)
Extended deadline if you file W-2s electronically with the SSA. Required if filing 250+ forms.
Mar 31
Late Filing Penalties
- • $50 per form if filed within 30 days of deadline
- • $120 per form if filed more than 30 days late but by August 1
- • $290 per form if filed after August 1 or not at all
- • $580 per form for intentional disregard of filing requirements
Common W-2 Mistakes to Avoid
❌ Wrong Social Security Number
Verify the SSN against the employee's Social Security card. Transposed digits are the #1 cause of W-2 corrections.
❌ Misspelled Names
Name must match Social Security records exactly. "Bob" instead of "Robert" will cause issues.
❌ Box 1 ≠ Box 3
These are often different due to pre-tax deductions or the Social Security wage cap. Don't assume they're equal.
❌ Missing State Information
If your state has income tax, boxes 15-17 must be completed. Each state may have different requirements.
❌ Using Wrong Tax Year Forms
W-2 forms are year-specific. Make sure you're using 2025 forms for 2025 wages (filed in early 2026).
❌ Forgetting to File W-3
Form W-3 is a summary that must accompany all W-2s sent to the SSA. It totals all W-2 amounts.
Pro Tip: Use a W-2 Generator
Online W-2 generators like MakePaystubPro's W-2 Generator automatically calculate tax amounts, validate entries, and create all required copies. This eliminates most common errors and saves hours of manual work.
Frequently Asked Questions
When do I need to give W-2s to employees?
You must provide W-2 forms to employees by January 31st of the year following the tax year. For 2025 wages, W-2s must be given to employees by January 31, 2026. This deadline applies whether you mail, hand-deliver, or provide electronic access to the W-2.
What if I make a mistake on the W-2?
If you discover an error after giving the W-2 to your employee, you'll need to issue a corrected W-2c form. Common errors include wrong Social Security numbers, incorrect wage amounts, or misspelled names. Issue the W-2c as soon as you discover the error.
Do I need to file W-2s with the government?
Yes, you must file Copy A of all W-2s with the Social Security Administration (SSA) by January 31st, along with Form W-3 (Transmittal of Wage and Tax Statements). You can file electronically through the SSA's Business Services Online or mail paper forms.
What's the difference between W-2 and 1099?
W-2 forms are for employees — workers whose taxes you withhold and who receive benefits. 1099-NEC forms are for independent contractors — workers who control how they do their work and pay their own taxes. Misclassifying workers can result in IRS penalties.
Do I need an EIN to issue W-2s?
Yes, you need an Employer Identification Number (EIN) to file W-2 forms. If you don't have one, apply for free on the IRS website (irs.gov) using Form SS-4. You can get an EIN immediately online if you have a valid SSN or ITIN.
How many copies of the W-2 do I need?
The W-2 has multiple copies: Copy A goes to the SSA, Copy B and Copy C go to the employee (for federal and their records), Copy D is for your records, and Copy 1 and Copy 2 go to state/local tax departments if applicable. Most online generators create all necessary copies.
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