Employers are legally mandated to issue this form to both their employees and the Internal Revenue Service (IRS). In the state of California, the significance of the W2 form is further amplified. This form is not just a mere statement it plays a pivotal role during the tax filing season, acting as a reference for employees to determine if they owe additional taxes or are eligible for a tax refund. It serves a dual purpose: firstly, to provide a comprehensive breakdown of an employee’s annual earnings, and secondly, to detail the taxes that have been withheld from their paycheck throughout the year. The W2 form, often referred to as the “ Wage and Tax Statement,” stands as a cornerstone document for employees across the United States.
