W-2 Pay definition
W-2 Pay means all compensation defined as wages in Code § 3401 for purposes of withholding income taxes at the source of the Compensation, without applying any rules that limit the remuneration included in Compensation based on the nature or location of the services performed (such as agricultural labor). It does not, however, include compensation payable after a Separation from Service other than amounts (x) payable within 2 1/2 months after the Separation from Service and (y) that would have been payable to pre-Separation Service if such Separation from Service had not occurred.