[ Quick explainer ]
What is a W-2 employee?
When someone calls a person a “W-2 employee,” they mean an actual hired worker that you pay through payroll — the kind of person who shows up at a desk or a jobsite on a schedule and gets a paycheck from you on a regular basis.
Signs you have a W-2 employee
- You decide when they work (a shift, a schedule).
- You decide how they do the work.
- You provide the tools, equipment, or workspace.
- You withhold taxes from their pay.
- You hand them a W-2 form in January.
Real-world examples
- • The receptionist at your office.
- • The cashier at your bakery.
- • The crew member who works your painting job site every day.
Why this matters for your Workers' Comp
Ghost policies are owner-only— they're built for businesses with zero W-2 employees. If you have even one, you'll need a different kind of Workers' Comp policy, one that actually covers your team.
Hiring later? Tell us right away. We'll move you to the right coverage so a claim never gets denied because the paperwork didn't match the reality.