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Cary North Carolina online 2023 IRS W-2: What You Should Know

W-2 Tax Statement — Internal Revenue Service All wages claimed on a Form W-2 are subject to Social Security and Medicare taxes that are determined in connection with a paycheck. These are the same taxes that generally apply to employee wages. There may also be Medicare tax withheld from your wages to the extent that you choose to withhold it from your paycheck. All wages paid and remitted tax-free are subject to federal income tax, and payroll deductions or other miscellaneous deductions are subject to state income tax. The Federal Excise tax rate is the same as that of the rate applicable to income earned within the U.S. A wage subject to the Social Security tax (federal employee) rate, when reported as wages on a W-4, is included in taxable income. If reported as part of a self-employment income, the earnings are not included in gross income.

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