Wages for which category may be reported on a W-2 if applicable?

• A. Wages may be reported on a W-2 if applicable
• B. Wages must always be reported on Form 1099-MISC
• C. Wages are never reported on W-2
• D. Wages must be reported on Form 1040 Schedule C

Answer: (A)

Wages are the compensation paid to an employee and are reported on Form W-2, which also shows the withholding for federal and state taxes, Social Security, and Medicare. Whether wages appear on a W-2 depends on whether the worker is an employee; if the worker is an independent contractor, payments are not wages and would be reported on a Form 1099 (now typically 1099-NEC for nonemployee compensation). So wages may be reported on a W-2 if there is an employee relationship. Wages aren’t reported on 1099-MISC for employee pay, and while a sole proprietor reports business income on Schedule C, the actual wages paid to employees are reported on the W-2 rather than on Schedule C.