AI Form W-2 Processing & Data Extraction Software

Automating their processes with AI

Affinda has removed the laborious workload from our accounts staff, who now focus on quality assurance and management of any outliers.

- Nathaniel Barrs, CTO, PSC Insurance

95%

reduction in manual work

10×

more invoices processed with no added staff

Enhanced auditability and tracking of invoice approvals

Read full story

Customer satisfaction is always our top priority, and Affinda has helped us achieve that by eliminating phone calls, manual handling, and delays.

- Jorg Both, Head of Business Systems, Northline

120,000

proof of delivery documents processed annually

82%

of documents straight-through processed in the first weeks

Automatic validation of documents against ERP system

Read full story

Two recruitment specialists reviewing a list of candidates

Affinda's ongoing improvements in its AI models demonstrate its innovative approach in Document AI.

– Michael Zhao, AI Product Manager, SEEK

High accuracy parsing across multiple languages
Improved customer experience thanks to better structured data
Stronger compliance with international data security and software standards

Read full story

Affinda’s support and expertise were invaluable… The experience working with Affinda was excellent.

- Nick Tran, Business Analyst, StateCover Mutual

300,000

documents processed annually

80

different document types

60%

Enhanced auditability and tracking of invoice approvals

Read full story

Logistics manager reviewing paperwork onsite

The results have spoken for themselves. I recommend Affinda to anyone looking to enhance their product or business with AI capability.

- Steve O’Keeffe, CTO, Felix

76%

reduction in manual data input

30%

reduction in compliance data errors

85,000

compliance documents processed annually

Read full story

Frequently asked questions

What is form W-2 processing?

Form W-2 processing is the workflow organizations use to capture, extract and validate wage and tax data from employee W-2 forms. Our AI form W-2 processing software automates this entire process to reduce manual data entry, minimize errors and speed up tax reporting. It ensures that employee wage data is accurate, compliant and integrated seamlessly with payroll, HRIS and accounting systems.

What is form W-2 data extraction?

Form W-2 data extraction is the process of reading a W-2 form and capturing the essential data points (such as employee and employer details, wages, taxes withheld, Social Security, Medicare and reference numbers). Our AI platform automates W-2 data extraction, handling both digital and scanned documents to deliver structured, accurate data ready for your payroll, HRIS, tax and accounting systems.

What is form W-2 extraction?

Form W-2 extraction is the automatic conversion of wage and tax data from W-2 forms into structured, usable information. Our form W-2 extraction software uses reading order models, OCR, LLMs, RAG and AI agents to deliver highly accurate data from both digital and scanned documents, with faster processing speeds.

What is an form W-2 parser?

A form W-2 parser is a software tool that automatically reads W-2 forms and extracts wage and tax data into structured formats. It handles variations in layout, format and document quality. Our AI W-2 parser adapts instantly as it works – learning from corrections in real time to deliver accurate, system-ready data for your payroll, tax and accounting workflows.

What is form W-2 line extraction?

Form W-2 line extraction captures wage and tax data from each box and section of your W-2, maintaining the relationships between different wage categories and deductions. Our platform handles grouped wage data with strong contextual understanding, preserving the connections between employee earnings, withholdings and tax allocations across even the most complex W-2 layouts.

What data fields can Affinda’s AI form W-2 processing software extract?

Affinda's AI form W-2 processing software can capture data from any field on a W-2 form, whether digital or scanned. Standard data fields include:

Employee Information

Employee Name: Full name of the employee as shown on the form.
Employee Address: Complete mailing address including city, state and ZIP code.
Social Security Number: Employee's SSN for tax identification.

Employer Information

Employer Name: Legal name of the employing organization.
Employer Address: Business address including city, state and ZIP code.
Employer Identification Number (EIN): Federal tax ID number for the employer.
Control Number: Internal employer reference number when present.

Wage & Compensation Data

Wages, Tips, Other Compensation (Box 1): Total taxable wages paid to the employee.
Federal Income Tax Withheld (Box 2): Total federal tax withheld during the year.
Social Security Wages (Box 3): Wages subject to Social Security tax.
Social Security Tax Withheld (Box 4): Total Social Security tax deducted.
Medicare Wages and Tips (Box 5): Wages and tips subject to Medicare tax.
Medicare Tax Withheld (Box 6): Total Medicare tax deducted.
Social Security Tips (Box 7): Tips reported and subject to Social Security tax.
Allocated Tips (Box 8): Tips allocated by employer when applicable.
Dependent Care Benefits (Box 10): Employer-provided dependent care assistance.
Nonqualified Plans (Box 11): Distributions from nonqualified deferred compensation plans.
Box 12 Codes & Amounts: Multiple coded entries for benefits, contributions and other compensation types.
Retirement Plan / Third-Party Sick Pay / Statutory Employee (Box 13): Checkbox indicators for plan participation and employee classification.

State & Local Tax Information

State / State Wages / State Income Tax: State identification, wages earned and taxes withheld by state.
Locality Name / Local Wages / Local Income Tax: Local jurisdiction, wages and withholdings when applicable.

Other Fields

Tax Year: Year for which the W-2 is issued.
Copy Designation: Identifies which copy of the form (Copy B, Copy C, etc.).

Need custom fields or variation handling? Define them in the UI or describe them in natural language and Affinda will extract and structure them automatically.

What file types does Affinda’s AI form W-2 processing solution support?

Our AI agents can process any file type.Supported file types include PDF, JPG/JPEG, PNG, TIFF, DOC/DOCform W-2 (Word), form W-2LSform W-2 (Excel), HTML and Tform W-2T/CSV.

How does Affinda process W-2s and extract W-2 data?

Affinda's AI agents read, extract and validate W-2 data. Our platform is intuitive to set up and easily integrates into your systems. Simply:

Upload your W-2s via drag-and-drop, email or API.
Configure business logic to match your organization's rules and workflows.
Let Affinda check and validate extracted data against your business logic and payroll, HRIS, tax or accounting systems to ensure accuracy.
Access structured W-2 data directly within your systems.

The result? Faster, more accurate W-2 processing with minimal manual input.

Can Affinda extract data from scanned or image-based W-2s?

Yes. Our AI form W-2 processing platform combines OCR with retrieval augmented generation (RAG), LLMs, agentic workflows, proprietary reading order algorithms and more, to automatically detect and process data from scanned or photographed invoices (PDF, JPG, PNG). Even low-quality images are automatically enhanced for reliable data capture and processing.

What language does Affinda’s AI form W-2 automation platform support?

Our AI W-2 processing platform can automatically detect and process W-2s in 50+ languages, including multilingual W-2s containing more than one language.Supported languages include: Afrikaans, Albanian, Amharic, Arabic (Standard, Egyptian, Sudanese, Algerian, Moroccan, Levantine), Bahasa Indonesian, Bengali, Bhojpuri, Bulgarian, Burmese, Chinese (Mandarin [PRC/Taiwan], Cantonese, Wu, Min Nan, Jinyu, Xiang, Hakka), Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Gujarati, Hebrew, Hindi, Hungarian, Italian, Japanese, Javanese, Kannada, Korean, Latvian, Lingala, Lithuanian, Macedonian, Malayalam, Marathi, Nepali, Norwegian, Odia, Persian (Farsi), Polish, Portuguese, Punjabi (Western and Eastern), Romanian, Russian, Slovak, Slovenian, Somali, Spanish, Swahili, Tagalog, Tamil, Telugu, Thai, Turkish, Ukrainian, Urdu, Vietnamese, Yoruba.

Does Affinda integrate with payroll, HRIS, tax and accounting systems?

Yes. Our AI W-2 data extraction platform integrates with 400+ downstream systems, including leading payroll, HRIS, tax and accounting platforms. Build no-code integrations using our AI integrations agent, or connect directly via our APIs – whatever suits your workflow best.

What are some examples of AI form W-2 workflow automations?

AI form W-2 processing helps automate and streamline wage and tax workflows across teams such as:

Payroll & HR: Speed up employee onboarding and income verification by extracting wage data from any W-2 format – including scanned documents. Business-rule validation catches mismatched SSNs, incorrect withholding amounts and missing employer details before they create compliance issues.
Tax Preparation & Accounting: Automate year-end tax reporting with self-learning AI that adapts to layout variations, reducing manual data entry and improving accuracy across high-volume W-2 processing periods.
Finance & Compliance Teams: Push structured W-2 data directly into your HRIS, payroll and accounting systems to strengthen audit trails, ensure regulatory compliance and scale operations without adding headcount.

What is an form W-2 OCR data extractor?

A form W-2 optical character recognition (OCR) data extractor scans and accurately captures wage and tax information from W-2 forms, regardless of format or language. Upload W-2 documents in PDF, JPG or PNG formats. The OCR technology first converts the documents into a text layer, ensuring all text (even from scans, photos or handwritten entries) is captured. Affinda's AI models then identify and extract key fields such as employee and employer details, wages, taxes withheld, Social Security, Medicare and reference numbers, transforming them into structured, usable data.This automation eliminates manual data entry, reduces errors and saves time. Once the W-2 data is captured and structured, our AI form W-2 processing pipeline can apply machine validation and post-processing to enable seamless integration with payroll, HRIS, tax and accounting systems.Organizations across payroll, HR, accounting and tax preparation rely on Affinda's AI for employee onboarding, income verification, tax reporting and compliance workflows, streamlining operations and improving overall efficiency.

Click here

The AI platform for form W-2 processing

How to automate form W-2 processing with Affinda's AI

Upload your W-2s, your way

Watch as it extracts your form W-2 data

Automatically route the data to your systems

Extract any information from any document, fast

Create models in seconds

Cleanse and transform data

Apply business logic

Pathway 1: Use our AI integrations agent

Pathway 2: Write your own code

Get AI agents to process your W-2s

Automate form W-2 processing with 99%+ accuracy

See ROI in weeks, not months

AI that instantly learns from your form W-2 and adapts

Easy integration, zero disruption

Configure your form W-2 model, customize and maintain control

Enterprise-grade security

Combine the best of artificial and human intelligence

No need to talk to sales. Get started now

Sign up for free

Upload documents

See the magic

Automating their processes with AI

95%

10×

120,000

82%

300,000

80

60%

76%

30%

85,000

Try AI form W-2 processing for free

Frequently asked questions

Discover the platform

See pricing, plain and simple

Explore

Pricing

Company

Learn more