Categories: General Tax Terms
W-2 Employee
A W-2 Employee is an individual who is employed by a company and receives a wage or salary reported on Form W-2, which is a tax document issued by the employer at the end of the year. This form details the employee’s annual earnings, withheld taxes, Social Security, and Medicare contributions.
As a W-2 Employee, the individual typically has taxes withheld from their paycheck, and the employer is responsible for paying a portion of Social Security and Medicare taxes on behalf of the employee. This contrasts with independent contractors, who receive 1099 forms and are responsible for their own tax payments.
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