Which form is used to report annual wages paid to employees?

Which form is used to report annual wages paid to employees?

• A. W-3
• B. W-9
• C. W-2
• D. W-4

Answer: (C)

The W-2 form is used to report annual wages paid to employees. This form provides a detailed account of an employee's total earnings, taxes withheld, and other important information related to their employment for a specific year. Employers are required to provide a W-2 to each employee by the end of January following the tax year, allowing employees to accurately file their tax returns. The other forms listed serve different purposes. The W-3 form is a summary of all the W-2 forms filed by an employer and is sent to the Social Security Administration. The W-9 form is used to request the taxpayer identification number of a contractor or vendor, and the W-4 form is used by employees to indicate their tax withholding preferences to the employer. Understanding the function of the W-2 is crucial for both employers and employees in the context of tax reporting and compliance.

The W-2 form is used to report annual wages paid to employees. This form provides a detailed account of an employee's total earnings, taxes withheld, and other important information related to their employment for a specific year. Employers are required to provide a W-2 to each employee by the end of January following the tax year, allowing employees to accurately file their tax returns.

The other forms listed serve different purposes. The W-3 form is a summary of all the W-2 forms filed by an employer and is sent to the Social Security Administration. The W-9 form is used to request the taxpayer identification number of a contractor or vendor, and the W-4 form is used by employees to indicate their tax withholding preferences to the employer. Understanding the function of the W-2 is crucial for both employers and employees in the context of tax reporting and compliance.