W-2 employee

noun

An individual who is formally employed by an organization (in contrast to an independent contractor who receives tax form 1099)

Meanings

nounW-2 employee (plural W-2 employees)

plural W-2 employees

  1. USAn individual who is formally employed by an organization (in contrast to an independent contractor who receives tax form 1099)

    1099 contract workers and W-2 employees are classified per the IRS based on how you work with and compensate them.

    2022 August 8, “1099 Vs. W-2: What’s The Difference?”, in Forbes Advisor, archived from the original on 08 Jan 2023

Origin

From W-2 + employee. W-2 is the tax form given to employees.

Full word history & related roots →
Cite this entry
APA

W-2 employee. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/W-2%20employee

MLA

“W-2 employee.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/W-2%20employee. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “W-2 employee,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/W-2%20employee.

Source: W-2 employee on Wiktionary, CC BY-SA 4.0.