W-2

Noun · Startup & VC

Definitions

  1. A U.S. tax form reporting wages and withholdings for employees. In startup operations, the distinction between W-2 employees and contractors affects taxes, benefits, and compliance obligations.

    In plain English: A U.S. form used to report employee wages and tax withholding.

    Example: "The finance team had to convert several long-term contractors to W-2 employees before the next audit."

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