The annual tax form employers issue reporting wages paid and taxes withheld.
W-2 employees have taxes withheld automatically and split FICA with their employer — the opposite of 1099 contractors, who owe the full self-employment tax themselves and get no automatic withholding.
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FAQ
What is W-2 in simple terms?
W-2 employees have taxes withheld automatically and split FICA with their employer — the opposite of 1099 contractors, who owe the full self-employment tax themselves and get no automatic withholding.