When new to U.S. tax filings, you could be wondering what is W-2? The W-2 form is used by employers to indicate the wage payments and taxes withheld from the employee for the year. The W-2 form is not used for contractors since they do not pay wages. You will also come across the word w-2 formulario while looking for information about the document in Spanish. Finding out what details you need from your w-2 form is important as the figures indicated on the form may affect your annual tax returns.