Companies have several responsibilities when it comes to W-2 employees. They must withhold federal income tax, Social Security tax, and Medicare tax from the employee’s wages and remit these amounts to the IRS. Companies must also pay their share of Social Security and Medicare taxes (matching the employee’s contribution) and potentially state unemployment insurance taxes. Additionally, companies must provide W-2 employees with certain benefits, such as health insurance (if the company offers it), unemployment insurance, and workers’ compensation coverage. Companies must maintain accurate payroll records and comply with various employment laws and regulations.
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