What if I Have Two W2s from the Same Employer With Different Wages?

Every year, your employer sends you a W-2 form, so you can file your income taxes. Most of the time, the process is pretty straightforward. You receive your W-2 from the employer and file your taxes. Then you can either pay what you owe or wait to receive a tax return.

In most cases, there's no need for your employer to send you more than one W-2 form. However, there are times when this needs to be done. This leads people to ask, "What if I have two W2s from the same employer with different wages?" You need to be mindful of these instances to file your taxes accurately and maintain a clean tax record. That means it's possible to get multiple W-2s from the same employer. However, if you're a business owner who needs to create your W2 forms, a W-2 maker is one of the options to consider.

This article helps you understand how and why. We'll also answer other questions like, "Does having multiple W2s affect your tax return?" and "Can you get two W2 from same employer?" These primarily address questions you may have about receiving multiple W-2 forms.

What Is the Purpose of W-2s?

Form W-2 is also known as the Wage and Tax statement. It's what citizens and residents of the United States use to report wages and taxes withheld in a previous year. Employers usually issue employees their W-2s. They create W-2s for employees who have a regular pay cycle. This means that they can be paid daily wages, a monthly salary, or any compensation as part of an employment contract.

The W-2 form needs to be sent to employees by January 31 of each year. This is to afford you, as the taxpayer, enough time to prepare your income tax return. Therefore, you will be able to file them by the deadline, which is usually in April. You also need the W-2 for filing your Federal Insurance Contributions Act (FICA) taxes. This includes Social Security and Medicare taxes withheld from your paycheck.

The Internal Revenue Service (IRS) formally uses W-2 forms to verify wages and tax withholdings reported by employers. It lets them confirm that the income and withholding reported on the employee’s tax return match what the employer submitted. The Social Security Administration also uses this form to track your earnings. These are used to calculate future Social Security and Medicare benefits.

What if I Have Two W2s from The Same Employer With Different Wages?

There might be cases where you have to ask, "Why do I have 2 W2s from the same employer?" The first case is when your employer erroneously sends you two W-2 forms with identical information. This could be merely a mistake. You need to report the issue to your employer and send only one W-2 form. Keep the duplicate for your records. In any case, it's recommended that an employer issue only one W-2 per employee.

When an employer issues two W-2 forms, they may risk increasing errors in entering employee details. Besides, it may be unnecessary to issue multiple W-2s. This is because the W-2 form only summarizes an employee's earnings in a previous year.

However, some cases warrant receiving more than one W-2 form. You get multiple W-2s only if the employer uses separate EINs for the two roles. This results in W-2s with two different amounts. You may also receive two W-2s if your employer has different state unemployment IDs, operates under different legal entities, or splits payroll.

For instance, let's say you're a government employee who's working part-time for the local government. You also work for a state school. In this case, you may get two W-2 forms for the two jobs. Additionally, some adjunct professors at state universities are state employees. But they may receive W-2s from each university where they teach as well. 

Another reason your employer may give you more than one W-2 is if you receive them from your staffing agency. If the worksite employer also paid you directly, they may issue a separate W-2. It may also be when your employer changed payroll providers or ownership. The point of multiple W2s from same employer is to enable you to report all your income.

Dealing With Multiple W-2s From the Same Employer

The numbers of individuals continue to increase as many people seek to supplement their primary income. You may have been part of those who have changed jobs. This contributes to why people find themselves with multiple W-2s at the end of the tax season. As you can see from the previous section, you may receive W-2s from the same employer. It can be for different jobs or from other job locations.

Employers With Different EINS

You can also receive multiple W2s from the same employer but from various departments. This means they'll bear different Employer Identification Numbers (EINs). EIN is your employer's tax ID. To submit your W-2, you need to enter each form separately. Then file them at the same time.

Submitting Your W-2 Forms

There's no need to be anxious about having multiple W2s from same employer. For identical W-2 forms with the same details, only enter the wage information once. However, keep both copies for your records. 

Here's what you should take note of:

• Verify that the federal information in boxes 1-14 is identical. Also, check if it's blank in one of the W-2 forms.

• Check if the state information in boxes 15-17 or local taxes in boxes 18-20 is different. In this case, you need to enter both on one W-2 screen. 

• Enter all the information in the W-2 form that's most complete. Enter both W-2s if they contain different information.

• If the only difference between the forms is box 12, combine all information from the almost completed form.

• Afterward, enter the different information in box 12 from the other W-2 on the same screen. Also, enter the information on your health insurance on the W-2 form in box 12.

While this may sound complicated, it is relatively straightforward when you have the W-2 screen open. If you're unable to enter the correct information, you can always seek additional guidance from a tax expert or an accountant.

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Can You File Two W2 Forms if They’re From Different Employers?

The straight answer is yes. You can file two W-2 forms if they're from different employers. You, however, need to send both W-2 forms to the IRS simultaneously. Don't send them separately. It's because you have an obligation to report all the income from all your income sources. The amount you pay as income tax depends on your total income. This is whether it's from a single employer or multiple employers.

Even if you have multiple Wage and Tax Statements, they'll show your total revenue. But this doesn't mean that you'll be required to pay more tax than someone holding only one W-2. All you need to do is file your paperwork appropriately. Your tax amount depends on your total earnings and not on the number of W-2 forms you file.

However, with multiple W-2 forms, you may need to alter your withholding tax. You can do this so it reflects the withholding amounts you claim on your total earnings.

How Multiple W2 Tax Forms Affect Your Withholding

When you're an employee of a company, your employer will give you a W-2 form each year. But your employer will also ask you to fill out Form W-4. This is the Withholding allowance certificate. You need this form before filing the W-2 form. You can fill out the W-4 and hand it to your employer as a new employee. If you lose a W-2, you should contact your employer to request a duplicate copy.

You also need the W-4 form when there have been changes in your financial standing within the tax year. The changes here include divorce, marriage, a new family member, loss of a spouse, or a new job. You need to mention the necessary details in your W-4. This comes under withholding. It allows your employer to determine the amount of income tax deducted from your paycheck.

Ensure you disclose this correct information to your employer. This defines your tax case correctly. It makes it easy to make deductions based on your stated budgets. This is especially important when you receive 2 W2s from the same employer with different amounts. The withholding amounts must be accurate.

Understanding Form W-4

Your W-4 can influence your annual tax. To understand Employee Withholding Certificates, you first need to understand how tax withholding works. With every paycheck, your employer deducts or withholds some money from your pay. The amount covers your taxes. You pay them in smaller installments rather than a lump sum at the end of the tax year.

Employers are obligated to withhold that amount for federal tax remittance. The amount the employer withholds depends on how much money you make. It also depends on the details in your W-4. Whether your spouse works, your claimed dependents, and multiple jobs can affect the withholding allowance. Income information in your multiple W-2s should be reflected in your W-4. This ensures accurate taxation.

Bottom Line

Ultimately, individuals filing multiple W-2 forms have the same legal obligations, guidelines, and tax laws. It includes the same as those with a single job or W-2. Always stay up-to-date with tax updates. You'll know how specific changes may affect your taxes and withholding. Also, if you haven't received your W-2 form or forms, you must still file your income tax return. You can use available tax software and estimate your taxes based on your last pay stubs.

For business owners and self-employed individuals, maintaining accurate records is important. Using our pay stub creator can ensure your business's pay documents are compliant. This can be particularly helpful during tax filing season.