Ask the Taxman: Which copy of the W-2 does the employer keep?
There are 6 parts to the W-2;
Copy A is sent to the Social Security Administration
Copy 1 is sent to the State Taxing Authority(ies)
Copy B is the Federal copy for the employee
Copy C is the copy for the employee to keep for your records
Copy 2 is the State copy for the employee
Copy D is the copy for the employer to keep for their records