"w2" refers to tax form W-2 [0], which is a form given to direct hire employees during tax filing season.
It contrasts to form 1099 [1] which are given to independent contractors.
[0] https://www.irs.gov/forms-pubs/about-form-w-2
[1] https://www.irs.gov/forms-pubs/about-form-1099-misc