Episode 1288
In this episode, we take a deep dive into Form W-2, officially titled the "Wage and Tax Statement". Whether you are an employee waiting for your paperwork or an employer navigating compliance, we break down everything you need to know about this essential tax document.
Topics covered include:
• The Fundamentals: How the W-2 reports wages and withheld taxes to the IRS, distinguishing "W-2 employees" from independent contractors.
• Critical Deadlines: Why employers must furnish the form to employees and file with the Social Security Administration by January 31, and the specific use of the form’s six different copies.
• Penalties: The costs of non-compliance, including fines of up to $250 per incorrect form (capped at $3 million annually) and penalties for late filing.
• Historical Evolution: The form’s creation under the Current Tax Payment Act of 1943, its 1965 name change from "Withholding Tax Statement," and the 1978 redesign that introduced the modern numbered boxes.
• Cybersecurity Risks: A look at "CEO Fraud," a specific phishing scheme where hackers impersonate executives to trick payroll staff into releasing W-2 data—a scam that has victimized major companies like Snap Inc. and Seagate.
Published on 1 day, 6 hours ago
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