Each employer fills the wages and taxes withheld for every employee for the respective states. On Form W2, please note that state income taxes vary for each state. Provide income and withholding information for each applicable state by entering the state, an employer state ID number, state wages and tips, state income tax, local wages and tips, local income tax, and locality name. Proceed to review the summary of your completed W-2 forms by clicking next. This video was brought to you by Tax and it's helping you steal back your time with the efficient evolving of your small business and nonprofit tax forms.