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The video tutorial discusses the preparation of forms W2 and W3, with W2 being the wage and tax statement provided by the payroll department each calendar year to employees after the year ends. It summarizes gross earnings, deductions, and taxes withheld. Copies are given to the employee, IRS, state, and Social Security Administration for record-keeping and future eligibility determination. Box details on a sample W2 form are explained, including employee and employer information.