FromW-2 +‎employee. W-2 is the tax form given to employees.

W-2employee (pluralW-2 employees)

1. (US) An individual who isformallyemployed by anorganization (in contrast to an independent contractor who receives tax form1099)
   • 2022 August 8, “1099 Vs. W-2: What’s The Difference?”, inForbes Advisor‎^[1]:

     1099 contract workers andW-2 employees are classified per the IRS based on how you work with and compensate them.

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