Form W-2 is updated every year by the Internal Revenue Service but the overall use of it remains the same. For the 2021 tax season, the IRS will change Form W-2 but these changes won’t be anything significant. Form W-2 is still going to be used for reporting income paid to employees and taxes withheld from this income.
Over the years, many changes occurred on Form W-2 but these changes have always been in the form of structural changes on how employers filed it. With that said, don’t expect any significant changes in Form W-2 2021. All employers are going to provide the same information on Form W-2 in 2021. These will be
- Income paid to employees
- Federal, state, local income tax withheld
- Social Security wages
- Social Security tax withheld
- Medicare wages
- Medicare tax withheld
Although there is a lot more that goes into a Form W-2 depending on the employee’s workplace and taxes withheld, the above will always be the same.
With all this said, don’t expect any changes to Form W-2 and the way it is filled out for employees. Same as any other year, all employers have until January 31st to furnish employees with Form W-2 so they can use it to file a fedeal income tax return.