W-2s are official tax forms that companies provide to their employees summarizing their wages, taxes withheld, etc., using a standard IRS template containing 20 boxes.
Boxes 1, 7, and 8
This is your gross earnings (wages, tips). The total amount you earned before taxes were taken out. If you work for an employer where tips are received, then Boxes 7 and 8 will show how much was earned in tips only.
Boxes 2, 4, and 6
These are amounts that were withheld for federal taxes, Social Security tax, and Medicare tax.
Boxes 3 and 5
These are earnings that are subject to Social Security and Medicare tax. For most people, this value represents your gross earnings minus contributions to a tax-sheltered retirement account like a 401(k).
Box 9
This box is no longer applicable and may be ignored.
Box 10
Any Dependent Care benefits paid by your employer will be shown here.
Box 11
Deferred compensation income from your employer from a non-qualified plan.
Box 12
Income or contributions that may alter your taxable income. For example, any money saved to a 401(k) retirement plan which reduces your taxable earnings. However, if you received a fringe benefit such as a company car or group-term life insurance over $50,000, then this would be considered taxable income and increase your taxable earnings.
Box 13
Identifies if you worked as a Statutory Employee (more information below) not subject to federal income tax withholding, participated in an employer-sponsored retirement plan, or received sick pay through another source (such as an insurance policy).
Box 14
A catch-all for other tax information. These may include union dues, disability insurance taxes, etc.
Boxes 15-20
Similar to your federal taxes, these boxes will report your wages and taxes withheld for the state and city. Check with your local state and city treasury departments to see if additional income tax returns are necessary.
Statutory Employee:
If workers are independent contractors under the common law rules, such workers may nevertheless be treated as employees by statute for certain employment tax purposes if they fall any one of the following four categories and meet the three conditions described under Social Security and Medicare taxes, below.
A driver who distributes beverages (other than milk) or meat, vegetable, fruit, or bakery products; or who picks up and delivers laundry or dry cleaning, if the driver is your agent or is paid on commission.
A full-time life insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company.
An individual who works at home on materials or goods that the employer supplies and that must be returned.
A full-time traveling or city salesperson and turns in orders from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments. The goods sold must be merchandise for resale or supplies for use in the buyer’s business operation. The work performed must be the salesperson's principal business activity.
Refer to the Salesperson section located in Publication 15-A, Employer's Supplemental Tax Guide for additional information. https://www.irs.gov/businesses/small-businesses-self-employed/statutory-employees
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