Form W-2 is an IRS tax form used in the United States to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship.

A 1099 form shows non-employment income, such as income earned by freelancers and independent contractors. On the other hand, a W-2 shows the annual wages or employment income that a taxpayer earned from a particular employer during the tax year.

The Social Security number ( SSN ) was created in 1936 for the sole purpose of tracking the earnings histories of U.S. workers, for use in determining Social Security benefit entitlement and computing benefit levels.