Which form is used to report wages and withholding to employees on an annual basis?

• A. W-2
• B. W-4
• C. 1099-R
• D. 1099-MISC

Answer: (A)

Wages and withholding are reported to employees on an annual basis using Form W-2. This form summarizes an employee’s total compensation for the year and the amounts withheld for federal income tax, Social Security, and Medicare (as well as any state or local taxes where applicable). Employers must provide the W-2 to employees by the deadline and file copies with the Social Security Administration. The form used to determine how much tax to withhold from a paycheck is the W-4, not a year-end wage report. Other forms serve different purposes: a 1099-R reports distributions from retirement plans, and a 1099-MISC reports certain types of nonemployee income. So, for reporting wages and withholding to employees annually, the W-2 is the appropriate form.