{"id":12911,"date":"2022-11-02T09:08:05","date_gmt":"2022-11-02T16:08:05","guid":{"rendered":"https:\/\/www.zippia.com\/employer\/?p=12911"},"modified":"2023-05-11T15:00:41","modified_gmt":"2023-05-11T22:00:41","slug":"w2-employee","status":"publish","type":"post","link":"https:\/\/www.zippia.com\/employer\/w2-employee\/","title":{"rendered":"What Is A W2 Employee?"},"content":{"rendered":"<p><!--Skip-->\n<link href=\"https:\/\/static.zippia.com\/galleries\/css\/htgaj.css\" rel=\"stylesheet\"\/>\n<p>Understanding what a W2 employee is is important to employees and employers. The different classifications of employees ensure that they are paid correctly and that they file taxes in the right way.<\/p>\n<p><b>Key Takeaways<\/b><\/p>\n<ul class=\"large-bullets\">\n<li>\n<p>A W2 form is a tax form used by the IRS to discover how much people were paid, what taxes they paid, and what taxes were paid by their employer on their behalf.<\/p>\n<\/li>\n<li>\n<p>W2 employees are what most people consider traditional employees, hired by a company to work every day for a salary or per hour on a regular basis.<\/p>\n<\/li>\n<li>\n<p>W2 employees and 1099 employees can be confused at times, and it can be hard for employers to decide which is which. Most 1099 employees are hired on a temporary basis, and they\u2019re all required to pay their own taxes.<\/p>\n<\/li>\n<li>\n<p>Filing taxes requires information from your W2 form; if you\u2019re a W2 employee, you\u2019ll also need to submit copies of this form to file both state and federal taxes.<\/p>\n<\/li>\n<\/ul>\n<h2 class=\"fancy\" class=\"fancy\" id=\"what-is-a-w2-form\">What Is a W2 Form?<\/h2>\n<p>A W2 is a tax form used by employees and employers. This form has information about the employer and the employee that centers on what the employee was paid and what amount they\u2019ve paid toward taxes. This form is for the Internal Revenue Service (IRS), and it\u2019s required for people who are classified as W2 employees.<\/p>\n<div ckmz=\"zippia\">\n<div class=\"row\" onclick=\"location.href='\/employer\/?src=inlinePostAJob-12911';\" style=\"font-size: 14px;color: #333; background: #fff; width: 100%; border: 1px solid #d8dee2; border-radius: 0 0 5px 5px; padding: 20px; justify-content: space-between;box-shadow: 0 18px 20px -20px rgb(0 0 0 \/ 15%); margin:0px; cursor:pointer;\">\n<div class=\"col-sm-8 col-xs-12\" style=\"-webkit-text-size-adjust: 100%; -webkit-tap-highlight-color: rgba(0,0,0,0); --vh: 12.87px;font-size: 14px;line-height: 1.42857143; color: #333; font-family: Open Sans,serif;font-style: normal; box-sizing: border-box;\">\n<div style=\"display: inline-block;margin-top: 10px;font-weight: 600;font-size: 20px;\">Get Started Hiring Now<\/div>\n<\/div>\n<div class=\"col-sm-4 col-xs-12\" style=\"font-weight: 600;font-size: 16px;line-height: 24px; text-align: center; text-transform: capitalize; color: #fff; background: #ff6000; border-radius: 4px; height: 48px; border: none; font-family: Open Sans,serif; display: -webkit-flex; display: flex; -webkit-justify-content: center; justify-content: center; -webkit-align-items: center; align-items: center;\">\n<a href=\"\/employer\/?src=inlinePostAJob-12911\" style=\"color: white!important;\">Post A Job<\/a>\n<\/div>\n<\/div>\n<\/div>\n<h2 class=\"fancy\" class=\"fancy\" id=\"what-is-a-w2-employee\">What Is a W2 Employee?<\/h2>\n<p>In general, a W2 employee is someone who receives a W2 as proof of payment and taxes paid each year. This is the most typical and traditional employee. W2 employees are hired to work for an employer, and they are part of the regular payroll.<\/p>\n<p>To qualify as a W2 employee takes more than filling out a tax form. Employers are required to manage employee tax withholdings and pay state-mandated insurance. They may be able to receive benefits and other job perks. Most frequently, their job is controlled by the needs of the company. W2 employees can be full-time or part-time.<\/p>\n<p>Employers are also required to provide employees with a minimum wage and the tools necessary to perform their jobs. While employers can terminate the employment of W2 employees at will in most circumstances, they do hire them with the idea of ongoing employment. If this is not the situation, it could be that the employee is a 1099 hire, not suitable for W2 employment.<\/p>\n<h2 class=\"fancy\" class=\"fancy\" id=\"difference-between-a-w2-and-1099-employee\">Difference Between a W2 and 1099 Employee<\/h2>\n<p>A question that crops up often is what is a W2 employee vs. a 1099 employee. A 1099 worker is considered self-employed and often hired on an as-needed and temporary basis, but this isn\u2019t always the case. 1099 employees are not regular employees, and the employer doesn\u2019t have to take taxes out of their pay; they also don\u2019t have to pay any taxes for the employee. They also don\u2019t receive benefits.<\/p>\n<p>Most people classify 1099 employees as gig workers, freelancers, independent contractors, contractors, and consultants. 1099 employees are responsible for paying their own taxes, and they receive a 1099 form to sum up their employment history for the year and to file with the IRS.<\/p>\n<div ckmz=\"zippia\">\n<div class=\"row\" onclick=\"location.href='\/employer\/?src=inlinePostAJob-12911';\" style=\"font-size: 14px;color: #333; background: #fff; width: 100%; border: 1px solid #d8dee2; border-radius: 0 0 5px 5px; padding: 20px; justify-content: space-between;box-shadow: 0 18px 20px -20px rgb(0 0 0 \/ 15%); margin:0px; cursor:pointer;\">\n<div class=\"col-sm-8 col-xs-12\" style=\"-webkit-text-size-adjust: 100%; -webkit-tap-highlight-color: rgba(0,0,0,0); --vh: 12.87px;font-size: 14px;line-height: 1.42857143; color: #333; font-family: Open Sans,serif;font-style: normal; box-sizing: border-box;\">\n<div style=\"display: inline-block;margin-top: 10px;font-weight: 600;font-size: 20px;\">Get Started Hiring Now<\/div>\n<\/div>\n<div class=\"col-sm-4 col-xs-12\" style=\"font-weight: 600;font-size: 16px;line-height: 24px; text-align: center; text-transform: capitalize; color: #fff; background: #ff6000; border-radius: 4px; height: 48px; border: none; font-family: Open Sans,serif; display: -webkit-flex; display: flex; -webkit-justify-content: center; justify-content: center; -webkit-align-items: center; align-items: center;\">\n<a href=\"\/employer\/?src=inlinePostAJob-12911\" style=\"color: white!important;\">Post A Job<\/a>\n<\/div>\n<\/div>\n<\/div>\n<h2 class=\"fancy\" class=\"fancy\" id=\"how-do-employers-classify-employees\">How Do Employers Classify Employees?<\/h2>\n<p>Classifying employees as W2 or 1099 workers can be difficult. The IRS is strict about companies paying their employees accurately. To determine how to define an employee who might be on the border of W2 or 1099, these three guidelines can help.<\/p>\n<ul class=\"large-bullets\">\n<li>\n<p><b>Behavioral.<\/b> Does the business control how, where, what, and when the worker does the job?<\/p>\n<\/li>\n<li>\n<p><b>Financial.<\/b> Is the employee paid the same as all other employees and in the same timeframe, or do they receive a flat rate or monthly compensation after sending an invoice?<\/p>\n<\/li>\n<li>\n<p><b>Relationship.<\/b> Does the company provide employee benefits? Is there a length and term of employment outlined in a contract? Most 1099 employees have a renewal or termination date, whereas W2 employees have open-ended terms.<\/p>\n<\/li>\n<\/ul>\n<p>To be honest, since Covid-19 and the shift to working from home, some of these classifications are harder to define, especially behavioral. Many employees are allowed to work when they want, wherever they want, and how they want. This can make it confusing, but the other two guidelines make it more clear.<\/p>\n<h2 class=\"fancy\" class=\"fancy\" id=\"how-does-a-w2-employee-file-taxes\">How Does a W2 Employee File Taxes?<\/h2>\n<p>An employer must file an employee\u2019s W2 forms by mail or electronically with the Social Security Administration SSA). This form tells the IRS what the employee was paid and what taxes were withheld for the year. Social Security and Medicare benefits are determined by W2 information, which is why it\u2019s important for the employer to submit it to the SSA.<\/p>\n<p>Companies are required to send employees their W2s by January 31. That means they can mail the form by that date; it doesn\u2019t mean that you have to receive it on or before that date. Your employer can send you a W2 before that time if they so wish.<\/p>\n<p>For an employee who is filing their taxes, certain boxes on your tax forms, federal and state, will require information from your W2 forms. Gather your W2s before filing out your paperwork so you have them handy.<\/p>\n<p>You\u2019ll also need to send copies of your W2s to the government along with your paperwork. If you\u2019re doing your taxes electronically, you can upload your W2s to your online platform, as they will need to be accessible for the IRS to review.<\/p>\n<div ckmz=\"zippia\">\n<div class=\"row\" onclick=\"location.href='\/employer\/?src=inlinePostAJob-12911';\" style=\"font-size: 14px;color: #333; background: #fff; width: 100%; border: 1px solid #d8dee2; border-radius: 0 0 5px 5px; padding: 20px; justify-content: space-between;box-shadow: 0 18px 20px -20px rgb(0 0 0 \/ 15%); margin:0px; cursor:pointer;\">\n<div class=\"col-sm-8 col-xs-12\" style=\"-webkit-text-size-adjust: 100%; -webkit-tap-highlight-color: rgba(0,0,0,0); --vh: 12.87px;font-size: 14px;line-height: 1.42857143; color: #333; font-family: Open Sans,serif;font-style: normal; box-sizing: border-box;\">\n<div style=\"display: inline-block;margin-top: 10px;font-weight: 600;font-size: 20px;\">Get Started Hiring Now<\/div>\n<\/div>\n<div class=\"col-sm-4 col-xs-12\" style=\"font-weight: 600;font-size: 16px;line-height: 24px; text-align: center; text-transform: capitalize; color: #fff; background: #ff6000; border-radius: 4px; height: 48px; border: none; font-family: Open Sans,serif; display: -webkit-flex; display: flex; -webkit-justify-content: center; justify-content: center; -webkit-align-items: center; align-items: center;\">\n<a href=\"\/employer\/?src=inlinePostAJob-12911\" style=\"color: white!important;\">Post A Job<\/a>\n<\/div>\n<\/div>\n<\/div>\n<h2 class=\"fancy\" class=\"fancy\" id=\"w2-employee-faq\">W2 Employee FAQ<\/h2>\n<ol class=\"ordered-list-large\">\n<li class=\"ordered-list-large-item\">\n<p><b>When do employers have to give employees their W2 forms?<\/b><\/p>\n<p><b>Employers must send W2 forms no later than January 31 of the year following the year in question.<\/b> This means if the tax forms are for 2022, then the forms must be postmarked by January 31, 2023, at the latest. Employers can send the forms earlier.<\/p>\n<\/li>\n<li class=\"ordered-list-large-item\">\n<p><b>How do you determine if an employee is a W2 or 1099 employee?<\/b><\/p>\n<p><b>A W2 employee is hired for ongoing work and may receive benefits, and the employer pays some taxes for the employee.<\/b> A 1099 employee is self-employed and pays all of their own taxes. They may also have ongoing work with a company, but they\u2019re often hired as needed rather than regularly.<\/p>\n<\/li>\n<li class=\"ordered-list-large-item\">\n<p><b>Can a W2 employee be a part-time employee?<\/b><\/p>\n<p><b>Yes, W2 employees can be part-time or full-time employees.<\/b> It doesn\u2019t matter how many hours an employee works; that is not how the W2 classification is made.<\/p>\n<\/li>\n<li class=\"ordered-list-large-item\">\n<p><b>Can an employee change from a W2 employee to a 1099 employee?<\/b><\/p>\n<p><b>Yes, the classification of W2 employees is not permanent.<\/b> It is possible for an employee to stop being employed on a permanent basis and become a contracted employee and vice versa. For instance, if a company has suddenly hit a financial hardship, they might decide they only need a marketing executive as a consultant.<\/p>\n<p>On the flip side, a company could start doing very well and decide to hire a freelance graphic artist on a full-time basis.<\/p>\n<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Understanding what a W2 employee is is important to employees and employers. The different classifications of employees ensure that they are paid correctly and that they file taxes in the right way. Key Takeaways A W2 form is a tax form used by the IRS to discover how much people were paid, what taxes they [&hellip;]<\/p>\n","protected":false},"author":285,"featured_media":12915,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[102,124],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is A W2 Employee? - Zippia For Employers<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zippia.com\/employer\/w2-employee\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is A W2 Employee? - Zippia For Employers\" \/>\n<meta property=\"og:description\" content=\"Understanding what a W2 employee is is important to employees and employers. 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