W-2 employee

Chiefly a US term. A W-2 employee is a worker treated as an employee for US tax purposes, with wages reported on Form W-2.

In Canada, do not write W-2. Employment income is typically reported on a T4. Whether someone is an employee or an independent contractor depends on the real relationship, including CRA guidance in RC4110, and on provincial employment standards where the person is actually an employee. Federally regulated workplaces sit under the Canada Labour Code.

Related: 1099 contractor, independent contractor, provincial employment standards.